Master C & D Class Apartment Investing with Guido Nunez
What unique strategies must real estate investors employ when acquiring distressed “D-class” properties?
In this episode, seasoned real estate investor Guido Nunez shares his approach to investing in and managing D-class apartment complexes. With hundreds of units under his belt in California, Arizona, and soon Texas, Guido has honed strategies for securing financing, finding quality service providers, engaging positively with residents, and adding value through modest upgrades. He explains how to determine a property’s class level based on metrics like price, condition, amenities, and neighborhood quality. Guido stresses the importance of aligning with reliable partners and service providers willing to work in distressed areas. While value-add upgrades are limited for D-class, security, cleanliness and community spaces make a big impact.
[00:01:00 – 00:04:00] Evaluating Asset Class Levels
- Price, cap rate, condition, amenities indicate class
- Consider whether a D property in a C neighborhood
- Estimate repositioning potential and capital needed
[00:04:00 – 00:07:00] Securing and Managing D-Class Properties
- Lighting, gates, security are first priorities
- Engage residents positively about improvements
- Upgrade courtyard and common areas on a budget
[00:07:00 – 00:10:00] Sourcing Service Providers for D-Class Areas
- Connect constantly with local maintenance crews
- Find partners already working in those neighborhoods
- Check county and city ordinances for investor-friendliness
[00:10:00 – 00:13:00] Neighborhood Factors Impacting Investment Decisions
- Scout crime rates, schools, demographics
- Total quality score indicates class level
- Must see a path towards growth and value
[00:13:00 – 00:30:00] Selecting and Vetting Investment Partners
- Get to know potential partners for 12+ months
- Attend conferences and meetups to make connections
- Ensure proper alignment for long-term holdings
- Book recommendation: Rich Dad’s Cashflow Quadrant – Rober Kiyosaki
- Who inspires Guido?: Himself 10 years in the future.
Quotes:
“If you’re not a people person, don’t do this, especially if you’re going to be an active investor.” – Guido Nunez
“I try to stay away from [apartment buildings built in the] 70s and up.” – Guido Nunez
Connect with Guido:
Website: https://thew2investor.com/
Apply to Invest with Taylor at www.investwithtaylor.com
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About our Guest
Guido Nunez
Guido Nunez is an experienced real estate investor focused on multifamily properties. He currently has over 150 units spread across California and Arizona, after recently selling one asset. Guido invests primarily in C and D class apartment complexes, though he recently acquired his first B class property. With experience across all levels, he has developed strategies for locating distressed deals, securing financing, engaging positively with residents, and adding value through modest upgrades.
Guido takes a hands-on approach to managing his properties, dealing first-hand with tenants, contractors, and other personalities. He believes being a people-person is a prerequisite for being an active real estate investor. When evaluating potential deals out-of-state, Guido relies on data like NeighborhoodScout reports to understand crime rates, demographics, school rankings and other indicators of asset class and growth potential.
With market uncertainty ahead and lending conditions more difficult, Guido is exploring creative financing solutions to continue acquiring properties. He remains bullish on multifamily overall due to the huge demand for housing. Guido is selective about new target markets, favoring Arizona and Texas over places like Detroit that have suffered declining populations. As he expands his portfolio, Guido is methodical about vetting potential partners through an extensive getting-to-know-you period before collaborating on deals.
