Wholesaling apartment buildings is an amazing opportunity. You leverage multi million dollar transaction values, slice off five and six figure assignment fees, all without taking any risk or using any of your own money.
In the early stages though, there is a lot to get your head around. In the world of project management, it’s well established that if you have to learn more than one new skill during the course of executing a project, your chances of successful completion start to go down.
This is definitely the case with apartment wholesaling, and it illustrates quite neatly why the first deal is the hardest deal to do. You are learning how to find deals, how to negotiate with sellers, you are learning how to raise private money, you are learning how to qualify buyers, and shepherd them through the closing process, all the while dealing with your own fears and maintaining a “can-do” mindset.
When you look at this way, it’s not a surprise that, most people struggle getting their first apartment deal done. There are a lot of firsts you have to achieve, and an unforgiving time frame in which to achieve them.
One way to lower the bar though, and increase your overall chances of succeeding, is to break the doing of the deal down into separate parts, and assign the accountability for producing a result in each part to another person. This can be a partner, someone in your network, it can be another Apartment Entrepreneur.
One of the most exciting aspects of real estate is wholesaling; the ability to quick-turn a property and pick up a check at closing a few days later. No banks, no financing, just cash, quick, into Hip National Bank.
The most obvious way to start wholesaling is with SFR’s, but there’s a problem. Everyone else who has been taught the business thinks this too, and there is wicked competition.
There is a solution though.
Leave the world of SFR’s and turn your attention to apartment buildings. Yes, you can wholesale apartment buildings exactly the same way you wholesale houses. Why not? They are real estate just like houses, they just have bigger numbers attached.
But that works in your favor. Bigger price tag, bigger assignment fee.
How much bigger? I think you would have trouble believing me, so I have a case study audio I want you to listen to.
It tells the story of a middle aged man looking for a new beginning, and his teenage son, and how they ventured into apartment investing and consequently made a high five figure profit on their very first deal, flipping an apartment building.
They had not a single penny in the transaction. Yes, money changed hands, but none of theirs, and in less than two weeks they had wholesaled an apartment building picking up an assignment fee of close to $70,000.
Listen to this story very carefully, it is packed with tips, insight and inspiration.
How much money can you really make?
Let’s be honest, if you are asking this question, your real estate activities are squarely placed within the realm of single family homes. To make money in real estate, houses are attractive in the beginning because they are familiar; everyone has either rented a house or bought a house so you know the numbers involved.
From there it’s not a great leap to start working with those numbers in the business of quick turning houses. Buying a house for $80,000, spending $20,000 on repairs, and selling it for full retail value of $150,000; pocketing a net profit of $35,000 (after expenses and costs of selling).
This is good money, for sure … “life changing” money. But after a few years it starts to be a lot of work for what you get out of it, and you start thinking how you can make more with the time and effort you put into your business.
The answer is, of course, apartments. You already know how to manage everyone to buy and flip a single family property, why not simply turn your and your team’s time, effort and attention to a multi-family property and move your business activities up the food chain a notch?
No doubt you know apartment buildings are higher priced properties than single family. Well, when you flip properties with higher values, you make bigger profits.
Sorry if this is stating the obvious, but it is this very fact of bigger numbers that keeps most people out of the apartment business; both apartment investing, holding for the long term, and flipping apartment buildings for the quick five or six figure profit checks.
The bigger numbers are too unfamiliar, and too s-c-a-r-y!
I want to let you in on a little known secret that is “robbing” you of the chance to have a lot of money coming in each month, and yes, having a multi-million dollar net worth.