Rental Property Investor · Goldsboro, NC · Member since 2019 · 44 posts · 33 votes
It’s Quite often ive seen and spoke with countless Accredited and Sophisticated investors. And they all seem to be the same. “You have to have skin in the game.” “You have to have money.” “ Why would i waste my time on someone who cant bring anything to the table”. (This is for someone who has no deals)
I often think to myself. Is it really that true? Is it impossible to accomplish a feat of this size (Multifamily,etc) Although i do understand that money is needed and there has to be some sacrifice made. But do investors have to be so “anal” about everything that comes out of there mouth?
Ive been given options (Wholesaling, Bird Dog, Mentorship programs) and anything else in the book. But would you suggest someone do something they aren’t passionate about? Would you do it.
Im currently 19 in active duty military and a aspiring multifamily investor. Ive been searching for partners to help with funding but it seems as if i get the same response. (Im not soliciting im trying to build a relationship).
I guess my real question is this. To whoever may read this. If you didn’t come from much. But you had a drive and you don’t really sleep that much. And your dedicated to reach that point to where a lot of BP investors are. And you reach that pinnacle of success. Would you treat someone on the other side of the fence as if your better? As if you were never that low?
Investor · Singapore · Member since 2013 · 1k+ posts · 3k+ votes
6y
@Christopher Smith What do your mean by "anal"? Just because I dont want to invest my hard earned cash with a 19 year old with no experience doesnt make me anal. It just makes me reasonably intelligent. It seems that you want a shortcut. If you are as driven as you say you are get a job. Get two jobs. Get 3 jobs. Cut your expenses to nothing. Save enough money to have skin in the game. For maybe a small flip. Then work your butt of and make it a success. Then go do it again with the profits. There is no shortcut and you will not be buying 100 unit building anytime soon. But you can make progress. Not by whinging about sophisticated investors but by getting out there and doing what you can.
Rental Property Investor · Enterprise, AL · Member since 2019 · 137 posts · 85 votes
6y
@Christopher Smith Start building a team. If investors don’t find you credible, then partner with someone or a group of people who may have some more credibility. Partner with someone who sees your value and has the skin to put in the game. If you are going after investors for their capital as a very young lone wolf with zero experience, of course they are going to have reservations about handing over a huge chunk of their money. The reason why they would feel more comfortable if you had skin in the game is because you may be less likely to fail if you had your money in there too. You would be motivated to succeed and not fail by the risk you share with them. You can’t take it personally.
Partnering with someone with the skin to put I. The game is a great strategy. Read and watch anything you can by @Sterling White here on BP. That dude has inspired me so much. Keep up the hard work, just know it won’t go unproved for long! Good Luck!
Real Estate Agent · Princeton, NJ · Member since 2016 · 1k+ posts · 1k+ votes
6y
@Christopher Smith - you’ve got a lot of great things going for you. 1) time 2) enthusiasm 3) a stable government job and 4) a military network filled with current and future camaraderie.
I'm assuming you're going to transfer every two years while you're active duty, so the best thing you can do for yourself is to gain skills you can use when your income is higher and you can VA loan a house hack. Can you find a military off base landlord who needs handyman help? Who will teach you as you solve his problems? Active duty military status will get you 10% off Home Depot and Lowes all day every day - I've certainly been tempted to find one to help me save on my rehabs. So you can hook up with either local SF or MF owners, or real estate agents doing foreclosures or selling flips. You need to provide value to someone who will appreciate your enthusiasm and teach you skills because you solved his problem by changing that door lock and running to home depot to get some materials. I do well with student housing and I would happily train and/or pay someone who solved my problems. I'm sure local MF landlords will too.
Rental Property Investor · St. Paul, MN · Member since 2016 · 3k+ posts · 3k+ votes
6y
Go get experience and money. Do the Wholesaling, bird dogging, flips, small rentals, etc. I suggest not just following your passions. Following passions alone, doesn't build a business. Do you have to enjoy what you're doing? Sure, but grinding and doing the dirty work is necessary to get to where you want to be.
Why are investors wanting you to have skin in the game and experience? They have worked hard for their money and don't want to lose it on an experiment. People are willing to take chances on newer investors, but not if they have no experience and no money. The only people you're finding to take that kind of risk is close family and friends.
Real Estate Agent · Cleveland, OH · Member since 2020 · 280 posts · 365 votes
6y
@Christopher Smith I too would like to thank you for your service to our country and also offer you a piece of advice, if I could. Maybe 3 pieces lol! I come from a consulting background, so I will take a slightly different approach to your question. There are a couple of secrets to success on this platform and in life and in business and in relationships of any kind.
The first one is to build relationships by being very interested in the other person. Get them to talk all about themselves. Think of yourself not as a future investor, but as a reporter interviewing this successful investor about their journey to success. Not only will you learn A TON (which is your first objective), you will earn their trust and distinguish yourself as a good listener who is mature beyond his years. This will pique the interest of the person and they will begin to ask about you and hear your story and your goals completely differently than if you had begun any other way. Demonstrating SINCERE interest in the other person first will make people more likely to want to entrust you with opportunities.
The second thing is add value. Once you have listened carefully, think about what has been said and identify the areas where you could solve a problem that this person has. Go home, think about it and follow up with, hey, I was thinking about what you said about x and wondered if it would be helpful to you if I did y. It might help you achieve a, b, c and I'd honestly be glad to have the experience. Do you think most people would turn that down? No. Even if they didn't need it they might give you a shot. If they did turn it down, do you think they'd remember the young man who offered? Yes. Relationships are long term. You take the nos with the yeses, leave people with an incredible impression and keep in touch. Down the line, another opportunity may present itself.
Finally, always frame everything in the positive. I would like to commend you for adjusting your tone with @Account Closed. We always win by addressing people with the same respect we want ourselves. Often that means exercising some discipline and responding after some time has passed or re-reading things before we hit send.
As an exercise, I encourage you to go back and update this post and reframe the entire question in the positive. I'll give you an example:
You said: "I often think to myself. Is it really that true? Is it impossible to accomplish a feat of this size (Multifamily,etc) Although i do understand that money is needed and there has to be some sacrifice made. But do investors have to be so “anal” about everything that comes out of there mouth?
Ive been given options (Wholesaling, Bird Dog, Mentorship programs) and anything else in the book. But would you suggest someone do something they aren’t passionate about? Would you do it."
Could you have said something like: "I know it's possible to achieve this feat and I know that some sacrifice has to be made. I would appreciate some feedback about the advice I've gotten from investors about using wholesaling, bird dog and mentorship as the way to do gain experience." ?? If so, what kinds of responses do you think you would have gotten?
Ok. I don't know if that was my consultant hat or my mom hat. I'm sorry lol! But we have all been 19 before, so I believe everyone here will forgive you for simply not being as old as we are yet. Keep trying, keep reaching out, keep working hard and you will reach your goal. All things are possible...
Investor · USA · Member since 2015 · 325 posts · 447 votes
6y
@Christopher Smith
I by no means feel like I have made it but I know the real estate game. I think you do have to have some swagger and confidence to make big moves. I will tell you my approach with a story.
My dad is a real estate guy. He was doing the BRRR strategy before Brandon Turner was in middle school.... *** News Flash Brandon Turner didn't come up with that strategy, he just named it***
Anyways, I grew up swinging a hammer on his projects. He would have me fill dumpsters and do some demo. Maybe he would put a paintbrush in my hand but he always told me, “Kai, I am never going to let you do finish work. It’s way too hard”. It actually got underneath my skin.
The first house I bought almost all of it was done with wainscoting, super high end finishes, and looks pretty sweet. My dad walked into the house and said “this is the best I have seen”.
My point is that when folks say to me, “you can’t” it pisses me off. I am a competitor, I feel like if anyone can do anything it is me. THIS GUY.
With that being said. My dad has never invested (financially) in me or my projects. He has told me multiple times “the bank is your business partner”. I guess that is the approach. Do it on your own.
Rental Property Investor · Columbus, OH · Member since 2014 · 148 posts · 177 votes
6y
@Christopher Smith think about it from the investors side of things. A lot of these people are getting requests for funds all of the time. You're not the first person to show up with a "great investment." Every pitch that they hear is for a great deal from a motivated person who's going to do whatever it takes to make it happen, no matter what. Same pitch for the deals that work out, same pitch for the deals that end up being so-so, and same pitch for the deals that fail spectacularly.
Rental Property Investor · Portland OR · Member since 2018 · 2k+ posts · 3k+ votes
6y
If I were 19 and wanting to invest in MF syndications, I would find the most successful commercial broker office that does a ton of MF deals and I would get a job there - any job - so that I could learn from those doing what I want to do and IMO being in the middle of the deals that are happening is where you can learn.
This is what I would do if I could turn back the clock.....
Create the reality you want - stay positive.... read “how to win friends and influence people” by Dale Carnegie.