Real Estate Investor · New York, NY · Member since 2008 · 139 posts · 5 votes
As I've learned over time, it seems like the real money can be found in the big deals. Personally, I can't afford even the down payment on any of these, but I'm starting to know a deal when I see one. What does it take to get yourself to start in the big time? By that, I mean, I'll see properties that are great deals, but cost $1 million or so - anyone who looks at the deal should be able to see that it is worthwhile.
I know that logically, the banks should give a loan out for these properties because they too will see the value and income. Is it just a matter of getting the confidence to approach lenders with the deal? Is that all it takes to get into larger deals?
Real Estate Coach · Oakton, VA · Member since 2008 · 695 posts · 43 votes
18y
If you truly have a big deal and the numbers work then the money will come out of the woodwork. You can find partners, hard money lenders, advertise for partners in the newspaper, etc.
The problem I get and many investors have is that most people bring us crappy deals.
Real Estate Investor · Chicago, IL · Member since 2008 · 1k+ posts · 218 votes
18y
Wow, I am agreeing with Primo on this. I have had my time wasted over and over and over.. why? because people simply do not do their own homework. I am not asking a person to know all the nuances of dealmaking, but some of the simple things apply regardless of the size of the deal.
Do some homework, research, etc.
Once you do that, you will be amazed at how much you will learn and your confidence will grow on the larger deals.
Attorney · Raleigh, NC · Member since 2008 · 4k+ posts · 1k+ votes
18y
If your current equity and cash position is not there to make the downpayment on a big deal - how do you intend to make the expected and unexpected payments that come along with owning a big deal? Remember - a "big deal" is big in every way. Big rewards with big expenses, big commitments and big surprises.
I will tell you this about the big deals. I work closely with a family member who operates in "big deals". In today's market with properties being lost left and right by hack investors with big dreams he has found an excellent bird dog - the bank. The bank approaches him. You do not get to a level of doing big deals by accident or because you really, really want to. You get there because you have a track record. He gets big deals brought to him by the bank because he has created a track record of success in small deals that lead to a track record of success in medium deals that lead to a track record of success in big deals. You should do the same - achieve excellence in where you are at with a firm vision of where you are going.
Matthew 25:21 "Well done, thou good and faithful servant: thou hast been faithful over a few things, I will make thee ruler over many things"
Real Estate Investor · San Francisco, CA · Member since 2008 · 51 posts · 0 votes
18y
Originally posted by "TimWieneke":
If your current equity and cash position is not there to make the downpayment on a big deal - how do you intend to make the expected and unexpected payments that come along with owning a big deal? Remember - a "big deal" is big in every way. Big rewards with big expenses, big commitments and big surprises.
I will tell you this about the big deals. I work closely with a family member who operates in "big deals". In today's market with properties being lost left and right by hack investors with big dreams he has found an excellent bird dog - the bank. The bank approaches him. You do not get to a level of doing big deals by accident or because you really, really want to. You get there because you have a track record. He gets big deals brought to him by the bank because he has created a track record of success in small deals that lead to a track record of success in medium deals that lead to a track record of success in big deals. You should do the same - achieve excellence in where you are at with a firm vision of where you are going.
Matthew 25:21 "Well done, thou good and faithful servant: thou hast been faithful over a few things, I will make thee ruler over many things"
If the deals are really excellent, you can wholesale them out or bird dog. Save all the money you make doing that until you have your own cash to make the deals work for you.
When you get enough cash, you can work the deal without giving a huge chunk of the profits to someone else. But you have to accumilate the cash, first. Hint: not many of us were just born with the money to work with. By far the majority of us worked hard for our money and saved to get that working capital.