During the COVID Pandemic of 2020, David Johanson was forced to shut down his successful small business. This provided time to reflect on life goals and led David to peruse real estate investing. Just as his pursuit began, David received a generous offer for his business. Proceeds from the sale provided startup capital for Daybreak Properties.
A couple of decades of business experience taught David the importance of seeking help. He hired Shiloh Lundahl of Blue Equities as a real-estate coach and began to assemble a team of real estate professionals to assist him.
With capital in hand, well-earned business skills, excellent coaching, and a solid team, David built a sizable and profitable real estate portfolio in a relatively short period of time.
We are a tenant-focused real estate company.
Our motto is "The tenants pay the rent, not the building."
Our acquisition criteria are simple: we buy mismanaged and neglected properties that have the potential to become beautiful homes that tenants are proud to live in.
We aim to purchase properties at 75% of the ARV. Our portfolio consists of 80% multi-family properties and 20% single family homes that provides healthy cash flow, equity growth, and a measure of liquidity.
Banks are motivated to lend us money because our tenants pay rent on time and we have very few vacancies. They are enticed by our ability to control costs and to build equity through wise purchases. In short, our debt coverage service ratio far exceeds standards and our credit is immaculate.
We have placed an emphasis on attracting debt and equity partners to fund our deals. They have confidence in us because of our proven integrity and they are excited by our vision. We add value to our partners by sharing details of deals and making them a part of the experience.
Our contractors transform mismanaged and neglected properties into best-of-class homes that tenants line up to rent and don't want to leave. They know what class property they're working on, and in a general way, they know who the future tenants are likely to be. We want them to think of the potential new tenant as their client and strive to please that person.
They work creatively on making a property the best of its class without breaking the bank. Our contractors know that they are a part of a team and that they support property acquisition by walking properties (in person or virtually) before purchase and providing preliminary rehab estimates.
Our property manager is a tenant expert. During the acquisition period, the property manager determines who is likely to live in the prospective building and what they will pay for rent. During renovation, the property manager describes prospective tenants to the contractor so that they know exactly for whom they're building. When it comes to renting units, the property manager is able to place the perfect tenant in the unit, creating a win-win situation.
The market sets the rent price. The manager does not use cost to attract tenants. Instead, value is added by focusing on the following:
Because we have focused on our tenants’ needs, our tenants are more inclined to take better care of their homes and deal with small maintenance issues on their own. This helps the property manager keep expenses down.
The property manager also maintains a great relationship with maintenance people and contractors and gets the most competitive pricing on repairs that need professional attention.
We invest in Fargo ND for four reasons.
