Over the last several months I have been laser focused on finding off market Multifamily deals, financing using OPM, and cashflowing from day one. Sound impossible?? It’s not, I promise! I have found success with a few strategies, so figured I would share the basics on what I have gotten done over the last 4-6 months.
1. Financial literacy. I repeat financial literacy. When I first heard this suggestion years ago I never fully understood just how important this is. If you don’t know how to carry on a conversation with potential investors/bankers/partners in real terms, bigger deals become a much bigger deal than you will be able to convince people of.
2. Know what you are looking for. Example: B class area, C class building, greater than 14 units, built after 1969, 2 bedroom units, etc etc etc.
3. DIRECT MAIL. Follow up follow up follow up. We simply started out targeting local markets. Utilized our tax map software(this is available for most municipalities. GIS mapping) sent HAND WRITTEN letters to every multifamily property owner, then followed up two weeks later with another letter.
4. Figure out what the seller truly wants. And be confident. It’s not always just money! How old are they, are they retired? Do they manage it? How long have they owned it? Did they inherit the property? All of these things will drive a seller.
5. Break free of analysis paralysis! Just f****** do it!!
Congrats on the success and rapid growth, @James Johner ! Love the fact that you're going out there and simply making it happen. Are you syndicating these deals or are these joint ventures? Curious to hear how you're structuring. All the best!
@James Johner congratulations and great post! My hat is off to you; you are inspiring us all!
The last line says it all "Break free of analysis paralysis! Just f****** do it!!" I'm at this stage right now as I try to figure out how I'm going to present deals to potential investors. Congrats to your success so far @James Johner
@James Johner Nice work! Let’s catch up again soon. Would love to hear all about it.
That’s awesome and great tips. I had analysis paralysis for years about investing and quitting my 9-5 job to do what I love. We broke through the real estate paralysis about a year ago and that has enabled me to leave the 9-5 behind.
Best of luck!
@James Johner Are you a syndicator? How are your deals financed?
Great work James. Would love to connect and hear more about your journey.
@James Johner congrats man! We just got in contract on our first 6 unit off market and hope to be were you are soon! Thanks for keeping it simple and reminding us to just do it.
@James Johner amazing story!! Thanks very much for the actionable tips.
@James Johner congratulations and thanks for sharing the tips..!!
@James Johner love it, man! OPM is definitely our drug of choice at the moment. Allows for much more rapid development. Enjoy seeing your success and other people moving rapidly as well. We've done a dozen BRRRR or flip deals over the last year or so, I feel great and I'm sure I'd be feeling even better if I had 48 units, though!
Our processes and procedures are starting to become clear- great points about being laser focused and specific on what you buy- takes a lot of the guesswork out so you can just f****** do it!
@James Johner thanks for the inspiration homie!!!
@David Acosta we are taking every deal down independently. Meaning some have partners and others don’t. We don’t have any funds set up at the moment for a full syndication but hope to have some sort of fund structure in the coming months.
@Greg Dickerson let’s do it. Look forward to it. I’ll give you a shout soon. Thanks for reaching out.
@Jonathan Bombaci awesome! I haven’t quit my 9-5. My partner and I both are trying to delegate as absolute much as possible to keep our well paying 9-5s until we can be 100% self sustainable. Close!!!!
@Justin G. Great questions Justin and thanks for asking. We don’t syndicate deals. All of our deals are handled on an individual basis. Some we have partners on others we don’t. This latest one is even more interesting. Financing 1.4m with typical bank loan 25yr am/5% 7 yr balloon. Owner is financing the remainder over a scaled period of time. Did I mention interest free with zero EDM?!? I love getting interesting with the financing. Just keep asking why we someone tells you no.
@Alina Trigub I have a single partner that I work with to help take over the world with. Partners can be a vital part of any business, but you must choose them wisely.
@Josh Oaten reach out anytime. Always here to help.
@Stephen Thomas congrats man! We are hoping to pick up a vacation rental on Maui in the next 6-8 months! Working harder everyday to make that a reality! If I’m ever on Oahu I’ll reach out.
@Brit Hale good to hear you are crushing the flip game. Keep piling up that equity and start hunting for some larger deals. I know you have heard a million times that they are easier than small ones, but in reality..they truly are. If the deal is right you will have multiple banks calling you to follow up on what you are going to do. There is so much money out there right now hunting yield that finding the deal is the hard part, funding it is easy. Keep crushing it.
@James Johner right on man! They are cracking down on the short term rentals. If you have any questions hit me up!
@James Johner Congrats on the success! It's great to hear you are able to scale even with a 9-5! Keep up the great work and look forward to hearing more in the future!
I couldn’t agree more! Congrats again!
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