My multi-million dollar first deal at 20 years old

My multi-million dollar first deal at 20 years old

Simi Valley, CA · Member since 2013 · 22 posts · 16 votes

Yesterday, I closed on my first commercial deal. It is a $2.3 million student housing deal in Oxford Ohio. I have been taught how to evaluate commercial deals from Jeff Greenberg (who was on BP #115). I am also learning to syndicate commercial deals, which is how me and Jeff closed on this property. If you are going to get started in real estate, make sure you have a mentor. I would consider Jeff my mentor. All you have to do is go to a Real Estate Investment Club and find out what you want to do and learn from someone in that field. 

I see real estate as a way to have cashflow to reach financial freedom and retirement. I am 20 years old and I am going to college currently. I have time for compound interest to work on my side. 

I see this deal as a start to get the ball rolling. I want to do many more deals and build up my passive income and assets. I see syndication as a good way to acquire larger properties and achieve passive income. 

Have a good day. 

Nick 

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Vinny MaidaPro Member
Flipper/Rehabber · Arnold, MD · Member since 2011 · 34 posts · 11 votes
11y

Well done Nick and great advice on getting a mentor.  They can make all the difference.

How did you find this deal... Local... Mentor.... Loop net????

See this reply in the discussion

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  • Investor · Saint Peters, MO · Member since 2013 · 106 posts · 12 votes
    11y

    Congrats sounds like a great first deal, I wish I'd have started at 20..

  • Investor · Katy, TX · Member since 2015 · 27 posts · 4 votes
    11y

    I am trying to learn as much as I can to invest in apartment complexes, does anyone have advice you can give me to working on getting my first complex within a year? How are you able to finance for them if you dont have alot of cash for the downpayment or have a partner that does either? I currently have 1 rental property and 1 flip house that I am getting close to selling. Though I want to move above and beyond residential houses in the future.

    Thanks,

    Josh

  • Investor · Rochester, NY · Member since 2015 · 61 posts · 12 votes
    11y

    @Nick West Great work. Keep up the good work! That's a very good example of creativity in real estate!

  • Rental Property Investor · Manteno, IL · Member since 2009 · 2k+ posts · 2k+ votes
    11y

    Those would be some of my questions as well.

    1) What kind of share did you get out of the project? 
    2) What was your actual effort in putting the deal together? It sounds like you found the deal on loopnet.  But did you do all the legwork up front to qualify the seller and see if they were motivated and/or willing to deal? 

    It sounds like the mentor really was the lead on everything (putting the money together, etc).

    Just curious as to whether this was really your deal or just an incredible education and maybe a bit of a kicker. I'm guessing you had to get some part of this deal or else the post wouldn't read "My....... deal". :-)

    But talk about an investor's dream. 20 years old. Commercial deal under your belt. And hopefully, you have some kind of position in the deal. Even if its only a little bit, thats still a great start at your age.

  • Real Estate Agent · Muscatine, IA · Member since 2014 · 10 posts · 1 vote
    11y

    Congratulations @Nick West! That's an incredible first deal to be a part of.

    Thank you for the details you've posted. 

    Was there a major reason why the PPM took longer than you expected?

    Again, congrats!

  • Real Estate Investor · Littleton, CO · Member since 2013 · 197 posts · 77 votes
    11y

    @Nick Westand @Jeff Greenberg

    Congrats and thanks for sharing!  Sounds like you found a diamond in the rough.

  • Simi Valley, CA · Member since 2013 · 22 posts · 16 votes
    11y
    Originally posted by @Josh Justiniano:

    Congrats! How did you structure the deal? Are you taking equity, or an acquisition fee, or both?

     I am getting a portion of both 

  • Real Estate Broker · Hazel Crest, IL · Member since 2014 · 20 posts · 1 vote
    11y

    Congrats

  • Simi Valley, CA · Member since 2013 · 22 posts · 16 votes
    11y
    Originally posted by @Mike H.:

    Those would be some of my questions as well.

    1) What kind of share did you get out of the project? 
    2) What was your actual effort in putting the deal together? It sounds like you found the deal on loopnet.  But did you do all the legwork up front to qualify the seller and see if they were motivated and/or willing to deal? 

    It sounds like the mentor really was the lead on everything (putting the money together, etc).

    Just curious as to whether this was really your deal or just an incredible education and maybe a bit of a kicker. I'm guessing you had to get some part of this deal or else the post wouldn't read "My....... deal". :-)

    But talk about an investor's dream. 20 years old. Commercial deal under your belt. And hopefully, you have some kind of position in the deal. Even if its only a little bit, thats still a great start at your age.

     I am part of the deal. I did get a portion of the equity position which will provide nice dividends in the future. This deal is kinda just like dipping my foot in the water. I did the insurance, taxes, looked at the leases, underwrote the property. I did a great deal of learning on this property. 

    My mentor did take the lead on this property with the financing and equity raising. On the next deal I plan on taking a much more active role in the money raising, due diligence, and financing of the property. I would like to learn much more on acquisitions and management of property's and I will have the opportunity in the future

  • Teacher · Sacramento, CA · Member since 2015 · 82 posts · 21 votes
    11y

    Editting

  • Teacher · Sacramento, CA · Member since 2015 · 82 posts · 21 votes
    11y

    You must have very big feet if you're this was just dipping your feet in!  Fantastic job, it was an utter joy to read this (even if I'm a bit envious of your connections, ambition, and wisdom). 

  • Investor · Fort Lauderdale, FL · Member since 2015 · 172 posts · 30 votes
    11y

    Congratulations @Nick West... What an awesome job. Keep up the great work sir!

  • Marietta, GA · Member since 2015 · 23 posts · 13 votes
    11y

    Way to go! You have a very bright future in real estate!

  • Grand Island, FL · Member since 2015 · 23 posts · 6 votes
    11y

    Nick,

    Great job, you certainly have a bright future ahead of you!  What is your equity participation in the deal? Did you earn anything by performing the acquisition (acquisition fees)? Thank you for sharing your experience! 

  • Grand Island, FL · Member since 2015 · 23 posts · 6 votes
    11y

    Nick,

    Great job, you certainly have a bright future ahead of you! It is great to see that you received an equity participation on the deal and made out on acquisition fees! Thank you for sharing your experience! 

  • Dalton, GA · Member since 2015 · 14 posts · 4 votes
    11y

    Good info @Nick West.  I am hoping to invest in a year or so close to a small college in Idaho and the location parimeter will be helpful as well as the type of housing that is preferable.

  • Investor · Nashville, TN · Member since 2013 · 1 post · 0 votes
    11y

    Congrats Nick!  As a Miami University alumni ... Oxford, Ohio has a special place in my heart.   

  • Licensed Ohio Realtor · Grove City, OH · Member since 2015 · 77 posts · 30 votes
    11y

    Congrats Nick, your future looks bright.  Stay focused and keep you eye on the prize!

  • Edgewood, MD · Member since 2014 · 283 posts · 59 votes
    11y

    @Nick WestCongratulations on your success. 

  • Real Estate Agent · Milwaukee County, WI · Member since 2009 · 3k+ posts · 525 votes
    11y

    Nick a millions and more congrats

    Please provide pics and keep us posted

  • Investor · Morgantown, WV · Member since 2014 · 9 posts · 0 votes
    11y

    @Nick West I am curious as to how you got involved with Jeff. Would you mind sharing how you engaged him and how that whole deal played out? Thanks for sharing.  

  • Peter TverdovBusiness Member
    Developer · New Brunswick, NJ · Member since 2015 · 1k+ posts · 2k+ votes
    11y

    @Nick West how much equity did you receive (percentage)? What is the exit strategy and what percentage of the appraised value of the building was your up front fee. I ask because I am possibly in the early stages of doing something similar with an investor and want to receive some equity in the deal while they have hinted at a large commission. 

  • Real Estate Consultant · Camarillo, CA · Member since 2010 · 2k+ posts · 1k+ votes
    11y

    Congrats Nick, I am happy to see that you are getting the recognition that you deserve. Many potential investors thing that CRE is the easy road to riches. It may be a road to riches, but if someone tells you that it is easy and anyone can do it, hold your wallet tight and run as fast as you can to the nearest exit.

    Nick struck with it, even after the disappointment of pulling out of a deal that he had found.  He picked himself up and we got this deal in Ohio.

    Watch for @Nick West interview with @Joe Fairless to be released in October. joefairless.com

  • Investor · Melrose Park, IL · Member since 2015 · 77 posts · 24 votes
    10y

    What is meant by "syndicate commercial deals"? Sorry but I'm just learning.

  • Bulawayo, Zimbabwe · Member since 2015 · 1k+ posts · 253 votes
    10y

    Congrats on the deal.thanks for sharing

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