How can I buy a 96 unit apartment complex

135 Replies

I found a 96 unit apartment complex for sale for 21 million. I lost my job last month. I have no money. My credit score is 600. I’m 46 years old. I’ve been in the rat race all my life. I have no family or friends with money. Today is my first challenge from reading The Miracle Morning. I got up at 4am this morning opened the door let God in Meditated. My question to you the BiggerPockets family is how can  I acquire this apartment complex with no money and no credit.  How can I get my name on his contract and fine investment partners. Any Information would be good information.  Thank you  in advance 

Your asking for a lot with little to give or have. I personally think your in a little over your head with this one.

Aside from finding investors, have you invested in the past in multi unit buildings close to 96 units? If not, I’d be very careful borrowing money of that extreme high volume to begin playing with other people’s money. If you have the experience in maintaining and running 96 units then that’s great. If not, I’d suggest start a lot smaller significantly smaller perhaps 15-20 units.

I wouldn’t want to be that investor trusting someone who doesn’t have a portfolio of multiple successful past investments or experience especially asking for millions. Plus, most investors won’t lend to you without an existential background of what your asking for. Investing 20 million doesn’t come easy at all to obtain for experienced investors to begin with, I hope you you have the past successes to price. Good luck, hope all works out.

You’ve definitely got the right mindset and some good motivation. But it’s all for naught unless you can use that fire to get moving in the right direction. They say the best way to eat an elephant is one bite at a time. You’ve gotta take that first bite though.

I’d say priority number one would be getting your credit score up. When trying to use leverage, that is going to be the key to get in the door nine times outta ten. I’ll just reiterate what Angie said above about needing to bring value to any venture. Why should somebody give you a piece of the action? Figure out what the answer to this question is. Real estate isn’t a get rich quick kind of thing and requires work and putting forth the daily grind. I’d caution you to stay away from anyone telling you otherwise. A lot of snake oil salespeople out there making big promises to get at your money.

The short answer is you can’t. You need money, credit or ideally both. And better yet you need to know people with that stuff. Since you don’t have it and you said you don’t know anybody you’re sort of out of luck.

I’d fix your credit first, that’s typically easier then getting more money

I like the ambition and the drive. The number of people that could pull this off would be a fraction of a fraction of a percent. Have you analyzed the deal? Do you have money relationships that would invest with you in exchange for sweat equity? Do you have any prior experience? 

You need to look at what you can bring to the table on a deal like this. If the answer is nothing, then start smaller until the answer changes. 

If you can put the deal together, you can solicit it to others who do have the money/credit. Instead of looking for a partner to split 50/50, look for someone to take 90 and you take 10. Just a thought. 

I like the feedback from all of you. You’ll are all right. But I’m going to keep trying. I like the 90/10 thing I will offer the sweat for equity. Thank you 🙏🏽 

Why are you looking at a complex where it costs $218,750 per door with a credit score of 600 and no money?

Based on what you're telling us you can't buy a single unit in that complex, but you want to find someone to help you get in on the entire thing? C'mon man. Quit playin and get back to hustlin.

@Charles Richardson most people that have no or little money start out as wholesalers as it requires minimum investment. I suggest you look into that as well. You're in a good spot geographically to explore it. Join a few local REI clubs found via meetup site and start networking and building your investors list. You'll be able to get to buying multi-family down the road!

Best of luck!

@Charles Richardson Reading the Miracle Morning doesn't mean things start happening immediately. You can't wish things into existence. 

In other words, how do you propose buying assets out of the reach of even experienced RE investors without any background - professional or academic, financial resources, operational knowledge and/or social connections?

The short answer is, you can't (thanks @Caleb Heimsoth ). As @Aaron Hunt has said, quit playing around, hustle and slowly build up. 

Hi @Charles Richardson ,

My guess is a 96 Unit building is out of the comfort zone for a 99.9% of BP members (including me!).  The ones that can handle that type of deal are either syndicating it or in some other partnership.

Think of Coach  John Wooden: “Be quick, but don’t hurry.” Instead of jumping into this size apartment, test the waters with a smaller project.

You could get a job with a PM company or commercial company to learn the ropes while creating income and ideally, building up your scores.

im personally not sure how you can do that.....Crowdfunding maybe.......you should also consider Wholesaling it for a good Chunk of money and possibly start a wholesaling business go higher from there...Good luck man 

I can wish everyday to play basketball like Michael Jordan . I can write it on a piece of paper and recite my goal everyday I can listen to coaches I can watch YouTube videos read books and shoot hoops in my driveway . I can go to motivational seminars and even ask Michael for advise himself but the reality is I can never make this happen because willpower and motivation can only go so far . In your case I’m sorry but you can not circumvent dedication perseverance and the work required to achieve this . Why do you think you could do this deal ? In America this is totally possible but reaping is reserved for only those who sow !!! You haven’t put the work and time required and that is why you have found yourself at 46 with a poor credit rating and no marketable skills . You want something for nothing and think you can wish it into existence but life does not work that way I’m afraid .theres no shortcut to success everybody has to take the stairs

If this was on loopnet.... very slim chance it's a worthwhile deal. People capable of closing a deal like this would of had access long before it went on the market...

What are the income and expense figures for this property?

@Charles Richardson you're obviously on a difficult path. I wouldn't focus on the the 21 mil deal for now, but instead focus on restructuring your life so that you can produce a drastically different reality for yourself. Nothing happens on the fly, its almost always years of persistence, knowledge, experience and new habits that drive big change. If you want to speed this process up, then put in 10x, 20x, or 100x more effort into your goals if you can, but first make sure you set realistic goals. If I were you I would start with finding a good job, then finding a mentor in real estate. Finding a great mentor in real estate is likely going to be one of the toughest challenges you will have, as many are not going to be interested in propelling you forward. BP is potentially a good place to start learning and looking for people to team up with  

Sorry bro but At your current situation You would not even meet the criteria to rent one of the units much less purchase the entire complex for 21 million

@Edit B. I don't want to get another job. Trying to find a good mentor for real estate is hard. I paid 3 mentors already just to find out that they don't no more then me. This deal just came my way. I'm a wholesaler. mybe I can wholesale it. 

@Charles Richardson how much did you spend on mentors?

How many people have you ever heard of being rich wholesaling? It doesn’t happen typically.

@Charles Richardson Regarding a mentor here is a post that I wrote on the subject.

How-do-i-find-a-mentor

Regarding the apt bldg. Yes you can do it. If the deal is good enough find someone with experience operating apt. bldgs. and find a money partner and take a cut of the deal for putting them together. As others have said that's going to be pretty darn tough if you don't know anyone with money. 

Yet again you might be surprised who you know with money or is only 1 connection away with money.  (if you know 250 people and they each now 250 people that is 62,500 just one connection away)

Also as pointed out, at $218k a unit that is a pretty high price per unit. What makes you think this is a good deal? Do you know how to evaluate a deal this size? The first step may be getting into a position where you are able to pull off a deal like this; building your network, building your credit and learning to evaluate deal like this.

@Ned Carey thank you for that post on mentors. I’m starting to think one of the biggest problems I have is not spending more time on BiggerPockets! Thank you🙏🏾 

Originally posted by @Charles Richardson :

@Ned Carey thank you for that post on mentors. I’m starting to think one of the biggest problems I have is not spending more time on BiggerPockets! Thank you🙏🏾 

I count about 5-6 actually big problems in your first post.

Not spending enough time on BP is probably not even in your top 10.

Gotta prioritize.

@Charles Richardson you are broke, lost your job and have a poor credit score. This indicates that you are not reliable in your financial life, so who would want to invest in you? You need to learn how to manage your personal finances first. Read Dave Ramsey and get your personal finances in order, then move on to business.

You are trying to take shortcuts to success and there are none. You coach basketball, so you know that. Does the player who never shows up for practice and can't master basic drills get time on the court? Does someone go from never picking up a basketball to being drafted in the NBA? No! You have to put in the time and work your way up to the big leagues. Buying a $21M apartment complex is the real estate equivalent of the NBA in basketball. I hope this makes sense. Do the work every day and understand it may take years. If you are not willing to commit the time, it will never happen. 

Good luck!

If you're a wholesaler .... forget this deal and invest in yourself. There's such a slim market for a deal this big, focus on deals your customer base actually wants. If you don't have a customer base or know what they want... invest some time in yourself/wholesaling.

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