Happy Thursday BP!

I forgot in my last article to tell everyone that I did purchase my first Apartment complex with no money down. We will dig deeper into that in this article. First I hope everyone is having a productive Thursday and a wonderful week!

After the seller accepting the LOI. We started negotiating the PSA. For those who don't know what a PSA means. It is a Purchase and Sales Agreement. The PSA took a couple of days to negotiate and complete. Digging deeper into the PSA. I had to put down 50k hard money within 5 days of the completion of the PSA. This $50k was for the Due diligence period. Before submitting an LOI. I had a really good understanding of what I needed to bring to the table to secure this deal.

1. Hard money, A lot of it.

2. A great KP/Sponsorship team to help me get to the finish line.

3. Mentors to guide me to the finish line without making a mistake.

4. A great attorney.

Doing your first Multi-Family syndication I would highly recommend building a strong relationship with a strong KP/Sponsorship team. You should also structure it to be a win-win deal for everyone. Getting back, After the due diligence period was up. I had to bring $100k hard money down. For the new investors, hard money means that the money you put down is non-refundable. So total after the Due Diligence I had $150k hard money. Now getting started in this business you may not have that much money sitting in the bank account. I currently had my funds tied up in a couple of flips I that I have had issues with contractors stealing my money and not completing the work to the homes. That is a whole another story that I will write about!

You have to think outside the box. I thought outside the box, having a close friend/investor that trusted me with his money for Real Estate. I sold him a single-family condo/townhouse rentals when I use to sell residential Real Estate. I no longer focus on residential. I believe you should focus on one thing until you can diversify your portfolio. He came to me at the beginning of 2019 and had an extra $500k to invest in single-family. When I first met him he had a million and wanted to pay cash for everything. I then showed him he should leverage and get a loan. He could buy more properties. He loved that idea. When he came to me saying he had $500k to invest I then educated him about Multi-Family and what I was doing in Multi-Family. He will only do a business deal over a brewery here in Charlotte. Which there are tons of Breweries.

We went to a Brewery and I showed him what his return could be on these deals that I have been working on. He fell in love! He also loved the tax benefit too. I raised money for my first deal. He invested $100k. He was extremely pleased. I called him up one afternoon that he was in town. He travels a lot for work, he is only in town 1 week out of the month. We meet at Starbucks after his yoga class. This was different, normally we are meeting at a brewery. I explain to him that I found a wonderful property here in Charlotte NC. I want to submit an LOI on it but I will need a loan of $160k. He asks what was that $160k loan going towards. I told him this is a loan that I will personally guarantee. $50k is for Due Diligence, $100k is after Due Diligence and $10k is for the lender deposit.

I will have to postpone the rest of my blog to next Thursday!