RG 134 – How to Create an Extraordinary Life Through Investing in Real Estate with Tim Bratz
- Tim Bratz is the CEO and founder of CLE Turnkey Real Estate Investing
- Tim invests in Cleveland
- Tim invests in B class areas
Nuts and bolts
Tim Bratz is the CEO and founder of CLE Turnkey Real Estate Investing, he acquires distressed commercial and apartment buildings and turns them into investment assets. This is passive real estate investingto that he can live on his own terms and he also likes to empower others to be financially free through real estate. Tim made his first dollar as a child dong haircuts on friends and burning CD’s of music for friends.
When Tim was in college all of his friends were getting involved in real estate, this was between 2003 and 2007. After college he moved to New York and got a job as a commercial real estate agent brokering sales and leases in Manhattan. While selling houses for other people he realized he was on the wrong side of these deals and needed to own the properties rather than being the broker. When he noticed this he moved to Charleston and became an investor for 5 years. However he was only a kid when he did this and had no money, so he increased his credit card limit and put $15,000 on it. He bought his first property for $14,000 with his own money to renovate and then sold it to one of the neighbors within 75 days and made $13-14,000. He repeated this process a few more times doing both wholesaling and full flips and along this journey he met people with capital but no time for the ground work. With these people he built his resume and gave away a lot of equity in these deals just to get the experience under his belt. He made a few mistakes along the way with partners but he’s managed a little over 100 turnkey houses a year for the last 2 years.
He later realized that apartment buildings had more money in them because of the economy of scale and since then he has completed on 1359 units. He buys in B class areas and buys distressed properties. He renovated the bathrooms and kitchens and buys granite in bulk at a discount. He has a management company for his Cleveland properties and they manage everything but in Georgia he has a local boots on the ground operator who works with him in a joint venture.
When Tim approaches a deal he rates each one by area and by the building, he only invests in B areas so he can usually get a good deal on the building. The buildings are either physically or managerially distressed and about a C or D rating. He always goes direct to the seller and doesn’t use brokers. He usually aims for 50-150 units as these are too big for small investors but also too small for hedge fund investors so it’s the perfect sweet spot. The lowest occupancy he’s ever bought was 60% and he only ever buys out of state if the deal comes through an operator that he knows in that area.
- Most important habit – Time blocking
- Most influential person – His father
- Most important tool – Excel
- Most educational failure – His failed business partnership
Investment site – Cleturnkey.com