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.
Rental Property Investor · Dallas, TX · Member since 2017 · 1k+ posts · 1k+ votes
8y
Originally posted by @Account Closed:
#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!
No offence but have you actually worked for or with a PE company? Nobody is going around looking for deals from guys with zero background. OP isn't trying to acquire a couple of SFRs or small MF.
I'm positive OP is a solid person and on the right track but giving inane advice like this is akin to giving an arsonist a matchbox (bad example but you get my drift).
Grit or determination alone aren't the only hall marks of success. Track record, professionalism, connections and capital come into play as well.
Best of luck calling a PE firm. The standard action on their end will be: spam and block. Try calling them and see the choice words they use in shutting you down.
Real Estate Agent · Sacramento, CA · Member since 2015 · 394 posts · 259 votes
8y
Great drive and ambition, there's a lot of people who are motivated day 1, day 7, and day 30. But those who continue and keep that motivation high are the ones who break through and find success. best of luck.
Real Estate Agent · Sacramento, CA · Member since 2015 · 394 posts · 259 votes
8y
Also if you REALLY think this 96 unit property is a dream deal, get to analyzing and create the best damn property analyzation spreadsheet you can ever imagine and use that to present what want to do. A lot of your personal situation goes to the way side on a property of that size when the numbers speak VOLUMES. Sure you won't get a 50/50 split but when starting its about building that portfolio, gaining that experience, and in your case building on that credit score.
Rental Property Investor · Brookhaven, MS · Member since 2017 · 186 posts · 108 votes
8y
You got a can do attitude which is great. But you've got to learn to crawl before you learn to walk. Start with a much smaller deal and learn. That way when you make your mistakes (because these always happen) it wont be near as costly.
Rental Property Investor · Castle Rock, CO · Member since 2018 · 26 posts · 12 votes
8y
This is an incredible thread! I thought the initial post was absurdly naive and would surely get laughed out of the forum. While there is a little of that there is also much more knowledge and hope than I expected. That speaks so positively for the crowd here. I’m a newbie and it’s inspiring to here all the support and positive feedback to a seemingly ridiculous scenario. I quickly talk myself out of “big deals” daily thinking they are only dreams and not realistic. This actually makes me want to look at them even more. It’s like a workout for creativity!
If I can offer any substance...
Dream about the home run. BUT, the fundamentals have to be right first. for that you need reps, good reps. Hit lots of singles and doubles and soon you will get that meatball pitch and take it long!
Thanks all and thanks BP.
Real Estate Investor · Waldorf, MD · Member since 2014 · 592 posts · 320 votes
8y
When mom says “Baby, you can do anything you want if you put your mind to it!”.
Well, mom not exactly!!
Mom forgot to tell us that we need MONEY! Credit can look like trash but if you can gain capital and a partner you’ll turn this impossible deal into a reality.
Just on 50 cents.
Rental Property Investor · St. Louis, MO · Member since 2015 · 41 posts · 28 votes
8y
I didn't read this entire thread, so maybe I'm repeating something. First of all, why do you want this particular apartment deal? I see about 5 deals a day from 12-100 units and most of them are not worth looking at. Here is why I personally would not look at this deal...the /door cost is over $200,000. There isn't a huge demand for high-end apartment rentals and these will be the first to tank in a downturn. Most people I know who are doing this are buying for under $40,000/door (exclude California and New York).
The bigger question though is what type of apartment investor do you want to be? I personally think you CAN buy your first apartment within 1 year. The easiest one for someone in your situation would probably be looking for value add, but don't fall in love with every apartment you see. I'd expect for 1 out of 25 to 50 to be a good fit. In order to do this you are going to need to be able to raise 20% of the purchase price PLUS the improvement budget from a private investor. You are going to need to be able to sign for the remaining 80%. This means you need to start networking now and you will need to start looking at smaller deals (keep it between 25 and 50 units). The good news here is that commercial loans like this are WAY easier than a typical residential loan. One of my local banks can underwrite something like this in 3-4 days.
The silver lining I suppose is that once you do your first deal, improve value (and presumably cash-out refi), you will have cash flow, cash in your pocket from the refi, increased net worth, and a private investor who just got an awesome return on their money and is hungry for another deal.
Start reading and learn this stuff like the back of your hand.
Investor · Portland, OR · Member since 2017 · 182 posts · 115 votes
8y
@Omar Khan Not sure where to start with your comment, but I will say this--- it is VERY possible. If he can't raise the funds to gain an interest in the property he can pitch it to an company and earn their respect/a entry level position at their firm and get in the game. I did it to get my job- now I own the company--- facts! And if not this deal- if he lays it up to a developer or re investor, it gives him credibility and the MOST important thing ever---- a REFERENCE for the next one. Give the guy a break- he still has a MAJOR Oppurtunity! Interest Rates Still at the lowest rates in 5k yrs!
Investor · Santa Barbara, CA · Member since 2016 · 75 posts · 35 votes
8y
Look up @Anthony Chara he offers great education and boot camps for apartment investors (and the opportunity to find others and partner with them! The ones who may have the pieces you don’t.)Meanwhile, there’s tons of information here on bigger pockets, great books in the bookstore, educate yourself. The rat race sucks but you need income coming in right now. Read Scott trenche’s set for life if you haven’t already, it’s a great game plan for getting started house hacking in multi family, and working your way up…
Vancouver, WA · Member since 2018 · 28 posts · 5 votes
8y
Hey I know it’s completely off topic but I tried posting something in the forums, do you have to be a meme we for some time in order to post or something?
#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!
No offence but have you actually worked for or with a PE company? Nobody is going around looking for deals from guys with zero background. OP isn't trying to acquire a couple of SFRs or small MF.
I'm positive OP is a solid person and on the right track but giving inane advice like this is akin to giving an arsonist a matchbox (bad example but you get my drift).
Grit or determination alone aren't the only hall marks of success. Track record, professionalism, connections and capital come into play as well.
Best of luck calling a PE firm. The standard action on their end will be: spam and block. Try calling them and see the choice words they use in shutting you down.
That post made me LOLZ. We went from being unemployed and broke to PE firms backing us.
Is Will Smith going to be the lead actor in this movie?
Rental Property Investor · Frisco, TX · Member since 2016 · 22 posts · 12 votes
8y
Charles,
Glad you got your job back. My suggestion would be to get a job in property management or other Real Estate related field so that you meet more contacts in the industry and gain experience at the same time while working towards your goals.
Also, take the time to learn deal analysis inside and out. Podcasts, webinars, everything you can get your hands on. You don't have any details listed like cap rates or rates of return so are you sure it is a good deal? Most of us look at hundreds of properties just to find one deal to put in an offer on. It is great if you have a connection to someone with an off market deal.
If the deal is good, post the numbers and you will have an easier time getting partners interested in your deal that have the credit, experience, and liquidity to finance the property. Your share of the deal will be equal to what you can bring to the table, first by finding the deal and second by helping to raise investor funds for the deal.
Finally, best advise I ever got,
DO NOT FALL IN LOVE WITH A PROPERTY, FALL IN LOVE WITH THE NUMBERS.
@Omar Khan Not sure where to start with your comment, but I will say this--- it is VERY possible. If he can't raise the funds to gain an interest in the property he can pitch it to an company and earn their respect/a entry level position at their firm and get in the game. I did it to get my job- now I own the company--- facts! And if not this deal- if he lays it up to a developer or re investor, it gives him credibility and the MOST important thing ever---- a REFERENCE for the next one. Give the guy a break- we know he screwed off the first 46 yrs of his miserable life but he still has a MAJOR Oppurtunity! Interest Rates Still at the lowest rates in 5k yrs!
If you own the company, and since you got your start that way...I think you should pay it forward and help it go from a possibility to a reality!
Haaaaaave you met Charles?
#HireCharles
lol... dude you cracked me up! I actually LOLZ'd reading your comments.
Benjamin: Put your money where your mouth is and pay it forward. Help Charles. #HireCharles
Rental Property Investor · St. Paul, MN · Member since 2016 · 3k+ posts · 3k+ votes
8y
@Charles Richardson why is this a good deal at $218k/unit (especially in Allentown, PA)? How did you find the deal? If it was on market, then it will be tough to do much with. If it was off market (completely off market) and it is a sweet deal, then you can potentially tie the property up (this could be tough if they ask about your experience). If you tie the property up, then you can try to find partners or a buyer that will pay you a fee. This will all be very challenging, but is doable.
Investor · Indianapolis, IN · Member since 2016 · 5 posts · 0 votes
8y
I'm reading a new book called "Principles" by Ray Dalio and his first principle is "Embrace Reality and Deal with it", this is in line with my personal principle of "Accurately comprehend reality and respond appropriately to that reality". Regardless of miracle morning, I do not think this deal is in the realm of reality for you and pretending that it is, is only going to waste your time and lead to disappointment. It is better to start small and execute in a proven way, read Brandon's book on no and low money down deals and try to find something in that range that works.
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.
Wow this sounds ideal.. Where did you get the property from listings?? That sounds really exciting.. So.. Can you teach me hiw tondo a deal like that!! You partnered by using a buyer and partnered with buyer??
Lehigh Valley, PA · Member since 2016 · 144 posts · 91 votes
8y
I have been in the business for almost 30 years. 90% of the "inspirational you can be anything you want to be " or "here's my advice" posts here are to put it nicely, ludicrous. If you can show me a deal where 200K+ per unit in the Lehigh Valley is not a bad joke or a money laundering scheme, I will retire from the business.
@Omar Khan Not sure where to start with your comment, but I will say this--- it is VERY possible. If he can't raise the funds to gain an interest in the property he can pitch it to an company and earn their respect/a entry level position at their firm and get in the game. I did it to get my job- now I own the company--- facts! And if not this deal- if he lays it up to a developer or re investor, it gives him credibility and the MOST important thing ever---- a REFERENCE for the next one. Give the guy a break- we know he screwed off the first 46 yrs of his miserable life but he still has a MAJOR Oppurtunity! Interest Rates Still at the lowest rates in 5k yrs!
If you own the company, and since you got your start that way...I think you should pay it forward and help it go from a possibility to a reality!
Haaaaaave you met Charles?
#HireCharles
lol... dude you cracked me up! I actually LOLZ'd reading your comments.
Benjamin: Put your money where your mouth is and pay it forward. Help Charles. #HireCharles
For the record we've already secured the capital few pages back... now we just need a closer
If you were the property owner would you do a master lease to someone w/ no job, no savings, no experience in deals of this size/scope, and sub prime credit?