Ep#29 5000 Units, $450m in Assets, Deep Value Add, Vertically Integrated. This is a killer combination of Multifamily operator skills with Kimberly Radaker

James: Hey audience, welcome to Achieve Wealth Podcast. This is James Kandasamy. Achieve Wealth focuses on commercial real estate and especially focusing a lot on Value Add Real Estate. And today we have Kimberly Radaker Bays from Dallas, Texas. Kimberly has done almost 430 million of assets specifically multifamily.

And this is just under her own asset management. And you know the 430 million represents almost 7200 units. Currently, they still own like 5000 of those units. And they focus a lot on deep Value Add which is an asset, not say an asset class, it's a type of Value Add that you know, gives you the highest return, right.

So they have done almost 10 deals up to now. One important thing that I want to mention before we bring Kimberly live is that Kimberly owns; construction management, property management, asset management and she also owns materials management, which is an important aspect of Value Add in vertical integration as well.

So hey Kim, welcome to the show.

Kimberly: Hi, thanks so much for having me.

James: Good, good. So I mean, you own a lot of units. You have been very successful in your Value Add Real Estate acquisition and you're playing in one of the hottest market, Dallas. So, can you briefly walk our audience and listeners through on how was your journey since the day you started? What year did you start? And can you just walk through your whole experience?

Kimberly: Well, I started in 2007, with some single-family houses and kind of did that when my kids were really little. And then as they got a little bit older, it was harder to take them into Value Add, fix and flips and rental houses and that sort of thing when they were getting into stuff. And so, took a little bit of time away from single families and then got into multifamily in 2011.

So bought the first property, was a 77 unit property in Irving, Texas. And went full cycle with that one in only 15 months and then did 1031 into 244 unit property. While we still own that one, we brought 444 unit property in Arlington. And then kind of as we sold, it just kept growing. So purchased three properties in 2015, which have now all been sold.

And we bought three in 2016, three in 2017 and seven in 2018. And then one so far this year. So all of those, we still own; the 2016 and on, we still own at this point. So that's 4874 units across 14 properties scattered all across the Metroplex, Easter Garland and West to West Fort Worth so.

James: Awesome. Awesome. And you do a lot on deep Value Add, right? So can you explain why did you choose deep Value Add?

Kimberly: I guess we weren't scared of it. And we had sort of a knack for it from doing some of the single-family stuff that we had done previously. So we got started with that. And so because we do self-managed because we have our renovation teams in-house because we have the materials import it's a lot easier for us to undertake some of those projects.

I mean, there's some of those projects that I definitely would never hand over to third party management. It would just be a real mess if you did, probably so it really takes an awful lot of hands-on stuff. And even then there's plenty of speed bumps that roll along with deep Value Add.

We have a property that we purchased almost two years ago, that had 200 hard down units that hadn't been occupied in at least 13 years that we know of. My guess is closer to 16 or 17 years. So that's been an ongoing project. And it's definitely hit various little bumps along the way with city inspectors and various things.

And, you know, pipes that hadn't been used in forever, most of the copper was gone, all those sorts of things. But we finally have all, almost all the way back online so.

James: So when you analyze deep Value Add, right, I mean, I'm sure you look for the value like you bought deals where there was a lot of units down and I think there's a lot of mismanagement and I mean, is that kind of deal easy to find nowadays?

Kimberly: No, it's not. The ones that are that deep Value Add are very, very few and far between at this point. But there is a ton of Value Add still available, just kind of depends on what you're looking for. So there's a lot of properties that have had some work done to them. But maybe more of the exterior has been done in the units, haven't seen as much on the interior.

And there's also a lot of room for Value Add on the management side. There's a lot of owners particularly that have owned for a long time in the market that haven't kept up with the rental increases that DFW has seen over the past five years. And so oftentimes, even a property that's in pretty decent shape, you can go in and definitely do some renovations and add some value there. But a lot of value can also be generated just by getting all the units up to the market.

James: Yeah, I know it's harder to find the deep Value Add nowad...