Biggest Challenge?

Question

Hi all, curious to know what your biggest challenge or frustration is right now with real estate or your business?

My recent frustration was that one of my equity sources pulled out at the last minute and I had to terminate my contract on a 98 unit apartment complex.

There are so many deals out there, so going back to the fishing pond...

Brian Adams · Answer

Hey Tom, this CPA here in Philly "Cuts Like a Knife" and thanks for the response.

I have been in your shoes where the "shark" smells blood and is able to take most of your deal because he/she can.  Meaning without his/her money you can't do the deal.

When I raise money for deals, I generally don't ask my friends and family for money.  However I do ask them for their connections and contacts.  For example I call 5 friends and 5 family members and tell them what I am doing and wanting to accomplish in my business.  For you, you could share with them your solid business plan.

Share with them that you have these deals and looking for investors to partner with.  Ask them to provide names and phone numbers of their CPA, Attorney, Doctor, Dentist, financial planner, neighbors, etc.  You are looking to find people who have money or know where the money is located like a CPA or attorney.

Obviously you now need to call them and introduce yourself.  Second obvious thing, most likely they won't throw money at you based on the first call.  You will need to meet them and develop a relationship.  But this will help you build a list of people to present your next deal too.

Why most people don't have private money to do deals, FEAR.  They are afraid to ask for it.

Good luck!!

Don Konipol · Answer

My biggest challenge is finding the kind of deals I was able to find the last 2 years!

Clay Huber · Answer

Two words: Fannie Mae

I've been trying to purchase my newest project from them for going on a month now, and it keeps getting pushed back further and further.

I suppose that I could be having much larger problems, but as far as the posters question of "biggest frustration right now", this would be it.

Tom St. John · Answer

Brian,

My biggest challenge right now is finding Private money to help partially fund some of the deals that I have been able to come across. I've joined the local REIA and have been doing some good networking. I've come close to securing funds from one seasoned investor (after providing a solid business plan backed by good numbers), but we were unable to agree on the final terms. This particular endeavor made me realize that along with alot of good people, there are also quite a few sharks circling the waters ready to take advantage of someone. I'm all for crafting a deal that works well for both parties, but not one that is totally advantageous for one party.

i've also attended auctions and other events in an effort to just get my name out there and start cultivating relationships, which I believe Real Estate is all about.

BTW - I always wondered what happened to Bryan Adams, the rock star (Summer of 69). Who knew he changed the spelling of his first name and was hiding out as an accountant in Philadelphia.

Tom

Brian Adams · Answer

James, sounds like a neat project.  Good luck with the wives in the mix...I am sure it will be very interesting for you and your partner

James Vermillion · Answer

My biggest challenge right now is a project that is a little different than what I am used to.  My business partner and I are getting ready to close on a duplex near downtown which we will be fully rehabbing and occupying (his family in one side and mine on the other).  We will be building a garage with a 650sq ft office on the second floor.  The biggest obstacle has been working with the historical division since this property is in the historical district (built in the 1920s) and adjusting the rehab as needed.   This is definitely a unique project for us as we have added 2 project managers (the wives)!

Brian Adams · Answer

Jon, I understand about all the details of a deal and it can be a bit overwhelming.  I use a checklist to help shepherd the deal along.  Not sure if it would be helpful to you, but I could email the checklist to you. Just let me know.

Jon Klaus · Answer

This is probably just a temporary problem for me, but keeping up with all the details of the deals I have going right now.  I have several active deals, and they all need shepherded along.  I'm not great at admin detail, and a little mistake or omission could be costly.

Byron Thomas · Answer

the same thing happened to me & i had to take on 100% of the project by myself so my biggest challenge is to hurry & sale my property so i can invest in other deals

Brian Adams · Answer

He must be a great guy, :)

I noticed you are in Colorado, from what I have heard that is a hot market right now?

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