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
All Over, USA · Member since 2017 · 689 posts · 756 votes
8y
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.
Wholesaler · Allentown, PA · Member since 2015 · 66 posts · 36 votes
8y
All the posts are great! Well I got my job back. I just checked my credit score it went up to 640. I will get it back to 750. I’m still working on this deal! It might be out of my reach! But I will never know unless I give it 100%. All my life people been trying to tell me what I can’t do. So far I proved a lot of them wrong. I’m not a quitter. I’m not always right. But I try! Thank you all and please keep them coming 🙏🏾
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
Charles, great question! Not easy to answer, love the ambition, the grab the bull the horns attitude, but what I can say with certainty is you need to begin to crawl first, if you can manage to get on your feet, keep working at this, maintain the momentum and mindset, you will be able to do this, but first you will need a little experience at least, let alone the capital and the credit score. Good news - apartment building are traded everyday, this is a good start, you can begin by analyzing this one and setting your goals to eventually buy this building or another similar one. In the meantime begin with some small wins, get some flow, then strike
I applaud this. You probably knew you would get roasted by many here, yet you still asked the question....Not only that, but you asked the question to what could possibly be the best forum of investors online. That is how you become successful....Asking the correct people without fear of the answer. This is how you'll begin to carve out a game-plan from smart people who have done it.
Here's my 2 cents:
1-Get your personal finances in order, credit score/savings ect.
2-While you're doing that, continue to learn about multi-family investments/how to analyze them.... and figure out what you're good at a.k.a. what value you'll be able to bring.
Then, the next time you find a potential deal, you'll be able to analyze it and know whether it's good or not for your investors, or even yourself.
I applaud this. You probably knew you would get roasted by many here, yet you still asked the question....Not only that, but you asked the question to what could possibly be the best forum of investors online. That is how you become successful....Asking the correct people without fear of the answer. This is how you'll begin to carve out a game-plan from smart people who have done it.
Here's my 2 cents:
1-Get your personal finances in order, credit score/savings ect.
2-While you're doing that, continue to learn about multi-family investments/how to analyze them.... and figure out what you're good at a.k.a. what value you'll be able to bring.
Then, the next time you find a potential deal, you'll be able to analyze it and know whether it's good or not for your investors, or even yourself.
Hope this helps, and I wish you the best!
-John
I would like to buy a FANG company and become a billionaire overnight.
San Antonio, TX · Member since 2018 · 14 posts · 13 votes
8y
I LOVE The Miracle Morning and Hal Elrod. I also LOVE Dave Ramsey and the Total Money Makeover. Stay BIG in your thinking but wise in your steps. It will take time to grow to that point. Get working to bring cash in now, get your credit score up, save up some cash and do your first deal. That will give you confidence, know-how and credibility. Grow from there. It will take time so don't get deflated if it doesn't happen overnight. Stay hungry :)
Southern California · Member since 2018 · 20 posts · 5 votes
8y
I would say your best chance of owning this complex would be to take the Master Lease Option route. The Master Lease gives you the opportunity to take full control of the property with no money down, the option allows you to buy the property when the lease term ends, thus allowing you to build your wealth and credit so you have a chance at financing the property later. If the owner of this particular property seems like a motivated seller I would definitely pitch the idea to him. Look into David Tinley for more information on the Master Lease Option, he's an expert.
Investor · Portland, OR · Member since 2017 · 182 posts · 115 votes
8y
#1 Don't be negative. And #2-- don't listen to anyone on this feed that isn't a multi-millionaire. Try this "Just F====== do it!" Find the money! Go to your local private equity firms and ask them what they are looking for---- PE firms are "Hunting" everyday for deal in the 5-15 million price range--- go for it!
Knoxville, TN · Member since 2018 · 24 posts · 12 votes
8y
Get your credit score up a little bit more, save at least 8k to 15k, then House hack! Best first bite you can take that you can chew. This 96 unit you trying to do for your first deal is to big to chew. You got the right mindset though!!
Flipper · Washington, DC · Member since 2016 · 36 posts · 27 votes
8y
I like your positive thinking, but have you even analyzed the deal to determine if it's priced right? Just because someone is selling doesn't mean you should automatically be interested in buying. The bigger the numbers, the more it hurts if it's not a good deal. I would start with understanding how to determine if a deal is good or not, and everything else can fall into place after that.
As for the money piece, syndication is the name of the game, but you have to bring at least sweat equity to the table if you have no money. "Transaction engineering" as one of my partners calls it, can get you a lot further than you think.
We all have to pay our dues, and from what I've just read from your post you haven't even started yet. Wealth have a price, you have to pay the price (self discipline, seminars, networking, take actions, learn learn learn and learn through small steps)
Stop wishing for shortcuts ,put a plan together to do your first deal. If your credit is bad because you havent paid the creditors your priority should be " paying the creditors" therefore adding at least an extra 40 points back to your credit. Apply for an FHA (1-4 units) and learn from the experience
Property Manager · NJ · Member since 2017 · 786 posts · 396 votes
8y
@Charles Richardson you may want to try to get a job in Real Estate, perhaps selling commercial properties this way you get a chance to gain experience analyzing deals, negotiating and learning the ropes, this will also place you in close contact with people that you can network with for potential JV deals in the future. The new income stream will help you to build cash reserves and help you repair your credit as well. I would also say that you should start with a written business plan for your investing career.
Rental Property Investor · Torrance, CA · Member since 2016 · 724 posts · 1k+ votes
8y
Nobody is doing this guy any favors by blowing smoke up his a**. I get the whole go for your dreams against all odds approach. But it only works to a point. A person with no money and a low credit score asking how to buy a 96 unit building TODAY is like someone that’s morbidly obese asking how they can prepare to run a marathon next week. Success takes blood, sweat, and YEARS. It starts with one property. Use the cashflow from that property to buy the next one. Use the cash flow from the two to buy the third....Eventually he’ll be buying 96 unit deals.
Specialist · Brooklyn, NY · Member since 2018 · 20 posts · 9 votes
8y
@Charles Richardson dream big, start smaller. As a thought exercise, start with the presumption that you're probably wrong about everything: the reasons you think this deal is worth buying, the underwriting behind your reasoning, your ideas about how you will add value and operate the property.
Your job is to prove yourself right about the most basic, high-level questions about you and continue through all of the necessary details to get from making an offer to executing your business plan. Don't move on to the second question/assumption until you have validated the first.
Here's an example of a good starting point:
Assumption 1: I think I am ready to invest in a real estate deal (regardless of deal size)
Idea to validate: find 5 other real estate professionals (brokers/investors) - ideally, some who are honest and intelligent, tell them what you have done to prepare, and ask them if they think it is a good idea. If it's not, fix that - read more, find a mentor, read message boards, etc. Then move on to your assumptions about this deal, resources available, back-up plans if you're wrong, etc.
Real Estate Professional · Hoboken, NJ · Member since 2017 · 46 posts · 26 votes
8y
Is this even a real post ?
To those saying to go for it and do it, how much money would you be willing to give someone with those qualifications.
And that’s a lot of sweat equity for 20 million, and it doesn’t even sound like his skill set is in the same field so what does that do ?
I would say your best chance of owning this complex would be to take the Master Lease Option route. The Master Lease gives you the opportunity to take full control of the property with no money down, the option allows you to buy the property when the lease term ends, thus allowing you to build your wealth and credit so you have a chance at financing the property later. If the owner of this particular property seems like a motivated seller I would definitely pitch the idea to him. Look into David Tinley for more information on the Master Lease Option, he's an expert.
How's he going to qualify for the lease or even pay the closing costs ?
Investor · Columbus, OH · Member since 2015 · 142 posts · 52 votes
8y
Charles Richardson nothing is impossible and don’t let anyone tell you that you CANT do something. You absolutely can do anything your put your mind heart and desire into, you’ve got a lot of work to put into In Order to be aligned properly to be able to land an opportunity like this one. I agree with everyone that says focus on yourself and improving your overall situation, credit, income and overall self. Landing an opportunity like this one is a very difficult task even for the experienced investor. Focus on the small things for now and improving your credit and finances and watch how fast you can turn this into fruition. We live in he greatest country in the world and just like with anything if you put the work in you can make it happen! Best of luck!
I think @Joe Splitrock is right. A book that really helped me take hold of my financial life was THE TOTAL MONEY MAKEOVER by Dave Ramsey. It's critical to have a plan for your money. Write a list of attainable goals and start hustling! Dave recommends..
1. Save $1,000 for an emergency fund
2. Start paying down debt
3. Save another 3-6 months living expenses
My wife and I are currently working on step 3 and it's taken about 3 years. We have about 75% saved towards our goal of 6 months expenses. It won't happen as quickly as you would like, but if you put the work in you will start seeing results. Good luck & let me know if I can help with anything!
Rental Property Investor · Southern NH · Member since 2017 · 87 posts · 100 votes
8y
Your intentions and motivations are great...start from there and learn as much as possible. As a new investor to multi-families myself, I can say it was quite a steep learning curve putting together everything there is to know just to acquire our first 3 family...and this is with a business partner. We both have stable jobs, good credit, solid down payment $, and connections. I don't say this to dampen your spirits, more to adjust them in line with reality and encourage you to start reading and learning the ropes before taking on something that's daunting to even the most experienced investor. Syndication is no joke...I'm learning the mechanics of it currently and there are a LOT of moving parts and extreme accountability. I'm concerned that jumping into a $21 million property from where you stand would be soul crushing at best.
I'd aim towards grabbing a new gig, repairing your credit, and save for a house hack multi-fam? Food for thought & good luck!
Investor · Indianapolis, IN · Member since 2016 · 7 posts · 4 votes
8y
I just talked to someone who bought a (much smaller complex) financing 80% with the bank and 20% seller financing over 5 years at prime rate. However, he had other single-family homes under his belt and a four-year track record. So maybe start with some small rentals?
I just talked to someone who bought a (much smaller complex) financing 80% with the bank and 20% seller financing over 5 years at prime rate. However, he had other single-family homes under his belt and a four-year track record. So maybe start with some small rentals?
Pretend you're an owner, would you owner finance a property to someone with: NO job, no savings, and sub prime credit? Most landlords would disqualify a person with that to even rent...
Not saying OP's a bad person, but from a business/risk perspective the ability to pay back the loan just isn't there nor is the history of doing so. The only reason someone would do something like that is they're banking on him to fail or they just don't care.