Wholesaler · Allentown, PA · Member since 2015 · 66 posts · 36 votes
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
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.
If the deal is good... tie it up & partner...or wholesale it. Is the deal off market? Are they offering owner financing? Why is it a deal? What are the numbers?
How is someone w/ no job, poor credit, and no savings going to tie up a 21 million dollar deal?
If the deal is good, people will partner. You tie it up, control it and use their money for a percentage of the deal. I just did this with a Hotel in Jacksonville. He would have to use their financials etc. This is probably too advanced for someone that is new in the business. It has to be a deal. The property I did was a 150 unit hotel in receivership.
You are trying to defy a law of nature ;
The law of sowing and reaping
2 rules -
1.Reaping is reserved for the sower
2.If you didn’t sow , then you can’t reap
You never put the work in ..so you can’t expect the harvest bro . You gotta plant in the spring if you expect a crop in the fall . It takes years of experience deals credit and money to accomplish this but you say on the sidelines for 46 years and now you want the reward . That is only reserved for those who put in the work !
If the deal is good, people will partner. You tie it up, control it and use their money for a percentage of the deal. I just did this with a Hotel in Jacksonville. He would have to use their financials etc. This is probably too advanced for someone that is new in the business. It has to be a deal. The property I did was a 150 unit hotel in receivership.
Again, how you going to tie it up.... assuming he has no relationship with people that have the capital required. It's going to be a hard sell to talk someone into partnering with you when you literally have nothing in the deal and it's all on them. How does he explain his value to the deal, why wouldn't that person(s) just cut him out and go direct?
Now if he had the money or track record I see how he could tie it up and provide value to someone... but he doesn't.
Again, assumption being that whoever is selling this has it listed on the market AND would likely require proof of funds.....
I would first call my business partner from Singapore that I did the hotel deal with. I would tell him I need bank statements - POF, because I have a slamming deal... and I would write an Offer. If I didn't have this contact, I would go to a local REIA meeting and meet with a Hardmoney Lender & tell them I needed a POF for a commercial property. If it's a great deal - even if they can't fund it they will find someone. It has to be a deal. He needs to find someone with experience to help him... but none of this matters unless it is a deal. They may very well try to cut him out and go direct. Assuming that this is a great deal, which it is probably not. I would then go to a title company and tell them I have this amazing deal, and I'm going to close with them, but I need to be protected so we don't get cut out of the deal and use their attorney on staff.
Interesting... would someone have any legal right to that deal if they had "hypothetically" no way to close it (relationship, job, income etc)? I agree w/ what your saying, but simply making a point that this might not be the best use of his time.
Rather he should focus on his wholesaling business that he already has and use that to network/get funds... Going to assume your partner in Singapore probably wanted to see some type of track record from you to go forward with a deal...?
The whole key is analyzing the deal. He probably doesn't know if it's a good deal or not. I have never had problems raising money for deals if they are good. My partner from Singapore or a Hardmoney lender is going to tell me if they are comfortable lending on it. They don't lend based credit or me, but on the asset it self. I just had a private lender
The whole key is analyzing the deal. It is not illegal to Offer on Real Estate. I have never had problems raising money for deals if they are good. My partner from Singapore or a Hardmoney lender is going to tell me if they are comfortable lending on it before they close. They don't lend based on credit or me, but on the asset it self. For example, I was looking at purchasing a house in S. Beach for 1.2M. I called a person from a REIA meeting... told him I need a POF. And he sent me a POF for 1.6M that day from his Chase account. He didn't run the numbers. I just told him I was going to lose the deal unless I had a POF. It's just a way of screening people. You have a due diligence period to back out... know your contract. I have never let not having the money or credit stop you from doing a deal. If you want me to send you the bank statement I will to your private email. I told want to publish it publicly. Yes - he should probably walk before he runs, but it can be done. Now the private lender is in no way going to lend unless the numbers make sense or unless I have money to put down, but as far as tying it up and getting financials it's not that hard.
The whole key is analyzing the deal. It is not illegal to Offer on Real Estate. I have never had problems raising money for deals if they are good. My partner from Singapore or a Hardmoney lender is going to tell me if they are comfortable lending on it before they close. They don't lend based on credit or me, but on the asset it self. For example, I was looking at purchasing a house in S. Beach for 1.2M. I called a person from a REIA meeting... told him I need a POF. And he sent me a POF for 1.6M that day from his Chase account. He didn't run the numbers. I just told him I was going to lose the deal unless I had a POF. It's just a way of screening people. You have a due diligence period to back out... know your contract. I have never let not having the money or credit stop you from doing a deal. If you want me to send you the bank statement I will to your private email. I told want to publish it publicly. Yes - he should probably walk before he runs, but it can be done. Now the private lender is in no way going to lend unless the numbers make sense or unless I have money to put down, but as far as tying it up and getting financials it's not that hard.
I get how private money works.... and I get the deal.
But even hard money lenders typically want some skin in the game. I highly doubt if I called your lender and was like hey I need POF for this deal (even if it's good) but I have no credit, no job, no savings, and no buyers lined up they would lend to me. Now maybe they'd make an exception if I had someone backing me up or a previous relationship... but not a fresh partner. This guy won't even have the funds to pay the closing costs on the loan...
His word (and lack of credit/income/assets) going to carry more weight with potential partners if he has a track record to back it up. Maybe he'll get lucky and make connections that'll make that easier as he establishes himself... He has to provide some kind of value to the deal...
I hate to say it , but the OP sounds like someone who's converted to the paradigm. As @Winn Hall points out, these deals can be done but there are lots of conditions (strings) attached. Having private money sources puts anyone on a different playing field for sure. But for people just starting out without money, access to money, knowledge, training, it's a tough road.
My only constructive input to this topic to the OP is to educate yourself, either by taking real estate courses (like broker courses) and/or devour/memorize brokerage concepts and/or applicable state law. That was my path about 20 years ago, but I learned to crawl, then walk, then run and I didn't start with a $21M deal. On that other topic linked above, Jeph will tell you it's done often and everyone can do it... but not that I've ever seen.
I now have a contacts because I've been doing this since 2011. I used to go out at night and put in 100 bandit signs for another investor. What I'm saying is. I saw a guy speak at a REIA meeting for Hard-money. I never even met him at the meeting. I took his card. I called him and told him I had a deal and I needed a proof of funds that day, or I was going to lose it the deal. I just needed to tie it up. Once you tie up a deal, you have control of it for the contract period. I have done the same tactic with commercial properties as well. Yes, it is easier for me now because I know what I'm doing and I have contacts that have money. Private lenders I deal with Lend based on the asset itself itself and not on me personally.
Borker or seller won't even entertain your offer without some proof of funds or pre-qualification. As someone mentioned, start with wholesale and build some base plus increase your credit score.
I doubt someone would want to partner or invest with you, when you don't have money, credit score and experience managing a property over 100 units.
I now have a contacts because I've been doing this since 2011. I used to go out at night and put in 100 bandit signs for another investor. What I'm saying is. I saw a guy speak at a REIA meeting for Hard-money. I never even met him at the meeting. I took his card. I called him and told him I had a deal and I needed a proof of funds that day, or I was going to lose it the deal. I just needed to tie it up. Once you tie up a deal, you have control of it for the contract period. I have done the same tactic with commercial properties as well. Yes, it is easier for me now because I know what I'm doing and I have contacts that have money. Private lenders I deal with Lend based on the asset itself itself and not on me personally.
Then why don't you hook the OP up and give him the contact info of your lender....
Once you have a deal tied up, you have Equitable title. Meaning you have legal rights and you can sell that property or assign it to someone else. However, yes if he’s never done a deal this is a very hard way to start... hope this helps 👍
Lenders that I know generally lend in their local market... however not all ...there's many that lend nationally . That's why I suggest going to a local REIA meeting. I Would certainly be open to looking at the deal if he would send me details or numbers on it And bringing it to a lender... if it it is actually a deal. I just don't want people to get discouraged because of their credit or job situation. There's ways to do it and you can make it happen !!!
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
Wait, this is for real? I thought this was a satire post....
@Winn Hall what exactly is it that you think a title company is going to do for you in this case? I think the fact that this thread is as long as it is speaks of part of the problem. The core problem here is the search for a shortcut. That’s not how it works. Real estate is not a lottery ticket. If you really want a shortcut take everything you have and buy lottery tickets. You only have to be right once.
My title companies attorney helps me out in deals a lot in exchange for me closing my deals with them . I believe his question was about how to protect himself from getting cut out of the deal. I've had them give me JV agreements....Partnership agreements, non-circumvent contracts ...
Is this a prank? If not. Get a good job. Make a lot of money and then buy one little rental property giving you at least $300.00 cash flow per month. Then, replace your W2 after tax income with primarily tax deferred cash flow and then you are free!!!
Swanny
Nothing wrong with a little drive, excitement and dream! Fixing the credit and getting a new job would need to be top priority, and then get to the grind!