Apartment Investing Help Call #3
It may be hard to really take this idea to heart, but it is true; you as you sit right now have the wherewithal to go out and buy a “profitable” 200 unit apartment building in the next 90 to 180 days, no matter what the purchase price.
It costs nothing to talk to commercial brokers and get them sending deals to you. You know how to analyze deals to identify those that will be profitable. It costs nothing to call an apartment loan broker and get them to line up financing, and you know how to shepherd a deal through the closing process.
But what about all the cash that is needed? What about about the closing costs, the earnest money, the down payment? What about all the money needed to rehab the units after closing? What about all the cash needed to pay fees?
Yes, that’s right. Private money. It is ALL covered by private money you raise in the course of doing the deal. None of it comes from you.
Think about that. Let it sink in.
What that means is, you can buy literally any size apartment building, as long as it’s a deal. And as long as you know how to raise private money.
But there is a lot of fear around raising private money, (around SEC rules, and being rejected) and that fear holds many beginning investors back. On Apartment Investing Help Call #3, Lance Edwards explains how to deal with SEC issues, and also how to position yourself so that investors want to invest with you, and provide you with all the money you need.
Here is Help Call #3.
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Best,
Ben
Categories: SMART Guide Tags: apartment investing help, raising capital, raising private money
Apartment Investing Help Call #2
In Call #1 we talked about the need for creating a steady consistent flow of deals coming across your desk and how that puts you in control of the apartment investing process. Well, where do you go to get the deals coming in? Who do you call, who do you contact? Real estate brokers? Do you contact apartment owners direct?
Both of those are viable ways to create deal flow, but there is a right way to do them, and a wrong way. Remember, our goal is to buy profitable deals using none of our own money; not dog deals, and not properties with potential with unmotivated owners.
Something you must understand; profitable deals with motivated sellers are literally all over the place. Within a ten mile radius of where you are sitting (or standing) right now there are very likely more profitable deals you can buy (with zero of your own cash invested) going at it full time for the next five years. Think about that for a minute.
But there is a caveat; you must have the “eyes” for these deals, and the key to that is mindset.
There is a wrong way to talk to a commercial broker, and the result of that interaction is you are tagged as a “waste of time” and thereby shut out of that brokers network from that point on.
On the other had there is a right way to talk to a commercial broker. The result of that interaction is you are perceived as a legitimate buyer who can close, and from that point on you get access to that broker’s network and he/she feeds you a steady supply of his/her pocket listings from that point on.
On help call #2 Lance Edwards answers questions about using commercial brokers and the critical role mindset plays in getting them to become a reliable source of profitable deals for you. He also provides some helpful tips from his own early experience in dealing with sellers and brokers.
This is a great call. Have a listen.
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Ben
Categories: SMART Guide Tags:
Apartment Investing Help Call #1
Are you on the verge of getting started with apartment investing, but have these big annoying questions that are stopping you from moving forward? Do you feel like the learning curve is so steep you are better off throwing in the towel before you even begin?
Well, it can be intimidating, no doubt. What with trying to manage commercial brokers to bring you deals, “the money”, what about all the money you need? And, what if all the good deals are taken?
Let me tell you; that’s all crazy talk. The reality is, buying apartments can be broken down into 5-6 discrete steps, and once you learn and master the processes in each step, buying a profitable apartment building with none of your own money becomes almost automatic.
It’s a bit of a paradigm shift though; you focus on the process, not on individual tasks.
This is a hard nut to swallow when you are fírst beginning and feeling overwhelmed. Recently I did a promotion with Lance Edwards to promote his Multi-Family Success course (which I highly recommend you invest in), and I experienced this first hand.
Even though Lance and I were offering his training with a fifteen day trial with no money up front, people still freaked out about the details, not believing they could buy a property so large, they didn’t have the money, the credit, the experience, they wouldn’t be able to find good deals, etc..
In response to this, I thought having “Help Calls” up front where people could ask anything they wanted about what was terrifying them in the apartment buying process, would allay some fears and instill a bit of confidence.
It turns out our Help Calls were a great success and I received a lot of positive feedback about them.
I divided them into the questions about related subjects. As many worried enquiries came in about how to find good deals, the first Help Call is about the critical first step; creating dealflow.
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Here is the call. I hope you find it helpful.
Ben