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.
New York, NY · Member since 2018 · 15 posts · 1 vote
8y
Matt... Master Lease where you get the money coming in and he would have some reponsibility which would increase as he shows his potential. You stay with ownership. So. To answer your question. I would be in control and make stipulations to ensure my investment. Have a micro managerial in tact and ofcourse this is all after doing my due diligence on his other needwd requirement.. I have been given chances when I had less than what was required and I would not be living if I couldnt do the same but witb precaution.. Yes. I would
Specialist · Charlotte, NC · Member since 2016 · 7 posts · 1 vote
8y
One has to confirm its a good deal, to do anything JV or whatever. If its a great deal raising money with a partner who has experience should not be that difficult.
Matt... Master Lease where you get the money coming in and he would have some reponsibility which would increase as he shows his potential. You stay with ownership. So. To answer your question. I would be in control and make stipulations to ensure my investment. Have a micro managerial in tact and ofcourse this is all after doing my due diligence on his other needwd requirement.. I have been given chances when I had less than what was required and I would not be living if I couldnt do the same but witb precaution.. Yes. I would
I know what a master lease is, it's either foolish or predatory to let someone way unqualified take that on. A person wouldn't even pass the most basic screening to rent apartment and yet were going to try and argue the case about a 21 million dollar deal?
Look at this for what it is, a business deal, there's ZERO indicators that this would be a successful deal. Don't go handing away the keys to the castle based on emotion, look at the facts.
New York, NY · Member since 2018 · 15 posts · 1 vote
8y
You probably rigbt.. But I know an individual that received a great opportunity with a 10 million dollar deal and a young woman and she had not ever done a deal..no credit and no money.. And guess what with the right leadership and right pupil the results can be overwhelming.. Stop not wanting to give someone a chance... You have nothing to lose... I know of Big Property owners that own over 70 buildings in manhattan that have done this
Toledo, OH · Member since 2017 · 45 posts · 18 votes
8y
Unless this is in southern California it's probably a terrible deal given the price.. you need such high rents to support that pricing, I don't think anywhere in PA could make this a good deal
Developer · Houston, TX · Member since 2015 · 1k+ posts · 1k+ votes
8y
Too many people in this thread are giving advice that they personally would like to get, advice based on hope instead of reason. "You can do it", "Just 10x it", "Live your dream", etc. Or even worse, giving advice based loosely on real estate terms they've kind of heard of but have never done and aren't viable for this particular asset or situation. Instead they should be providing advice that is needed, advice based on the reality of the OPs situation. This is not someone new to real estate but has vast business experience and is sitting on a $3M exit from a sale of their old company. This is a NINJA - no income no job no assets. I'd be hard pressed to advise this person to even start residential real estate investing. Advising them that a large $21M commercial investment is viable is extremely poor guidance.
You probably rigbt.. But I know an individual that received a great opportunity with a 10 million dollar deal and a young woman and she had not ever done a deal..no credit and no money.. And guess what with the right leadership and right pupil the results can be overwhelming.. Stop not wanting to give someone a chance... You have nothing to lose... I know of Big Property owners that own over 70 buildings in manhattan that have done this
Since you know these big property owners, give OP a chance and introduce him.
You probably rigbt.. But I know an individual that received a great opportunity with a 10 million dollar deal and a young woman and she had not ever done a deal..no credit and no money.. And guess what with the right leadership and right pupil the results can be overwhelming.. Stop not wanting to give someone a chance... You have nothing to lose... I know of Big Property owners that own over 70 buildings in manhattan that have done this
"You have nothing to lose" lending someone $10M? Some people would consider that a lot of money and lot to lose. Tell us more about how this 10 million dollar deal came about.
New York, NY · Member since 2018 · 15 posts · 1 vote
8y
You need to get your own .. I have met several buyers and Is been good but i have trusted too many people that all they do is try to steal your buyers.. Which is really sad.. I would not ever do something like that.. I hate vulture minded people is not me.. I had a deal where the wholesaler was going to make 18k and i was only making 7k and from theb7k i was giving some one else money for helping me And guess what i was happy.. Im a beginner and that was the price for not having my own property... I woukd never try tonsteal someones buyer thats like betraying someone..
But I know an individual that received a great opportunity with a 10 million dollar deal and a young woman and she had not ever done a deal..no credit and no money..
I know of Big Property owners that own over 70 buildings in manhattan that have done this
Rental Property Investor · Torrance, CA · Member since 2016 · 724 posts · 1k+ votes
8y
Charles Richardson you don’t need a mentor, you need money. Stop playing around and go get a second job, save money, and buy ONE property. Then progress from there. You’re trying to go from 0 to multimillionaire in one deal that’s not how the world works. Sorry man, this is going to take a long time.
Analysis aside, if this deal even exists, it is NOT a good a deal.
If it actually exists you're describing a top of the market, very high end, A+ core to the core asset. It's in a class that almost no one here on BP even deals with because the only buyers who will accept the low returns associated with such assets (and substantial higher risk IMHO) are institutional investors: large funds, insurance companies, pension funds, 1031 money etc.
If we are just talking about in "theory" how one with bad credit, spotty job history, no cash available can take down a $21M deal then that is another, albeit futile, exercise.
All the enthusiasm in the world is for not if it is not directed towards an achievable goal. There's nothing wrong with setting a big goal, but it should be just barely out of reach, not nearly impossible. And true, like others have said, it's not impossible - I would say there's about a .1% chance of success - and dozens and dozens of hours spent. It won't be for nothing, though. I'm sure you'll learn a lot.
If you want to go down this road, instead of trying to do something that has >1% of success, why not try for something that has at least a 10%, 20%, or even a 50% success rate. Do something in reach, you'll learn more practical lessons on REI and will be taken more seriously.
I like the NBA and marathon analogy- it would be like an overweight middle aged person saying "I'm going to try out for the NBA or run a marathon tomorrow, hope I can do it!" If they make an attempt they will probably injure themselves, setting them back further and worse discouraging future attempts. Instead just start "working out" and follow the crawling steps others have mentioned. Start with a 4k.
Not trying to rain on your parade but wishing you logical success.
Investor · Boston, MA · Member since 2015 · 1k+ posts · 3k+ votes
8y
-PE firms and PM companies have little more than the letter P in common. Not trying to denigrate your accomplishment, but just because a tactic worked for you in one industry, does not mean it will work in another. Suggesting he could get a job at one is a low probability play.
-Not a lot of them are looking for 46 yo analyst
-Most PE firms don't invest in RE and the ones that do have their own lead generation methods. Being honest here, but if an unemployed guy can find this deal, what makes you think it already hasn't been passed over?
This "advice" of go to a PE firm is a slightly less generic version of "if you have a great deal, the money will find you"
He may be an entrepreneur, but he's one that needs funding. You've told us that you are a business owner, so if you honestly believe that a PE firm would invest in this deal, why don't you JV with him?
Flipper/Rehabber · Bronx, NY · Member since 2016 · 168 posts · 168 votes
8y
Charles Richardson Charles I just read how you got your job back and now your credit is stating to climb and your ambition is still there. I’m very happy for you, but we all know the old saying it’s not what you know it’s who you know. Again, glad your getting back on your feet but I still don’t understand your motive behind this 96 unit and no other properties.
So while getting all the small aspects up and going, start to NETWORK!! I stress that so much, or your just a small fish in Big pond.
I’d never deter anyone from a goal that they have, but one thing of concern is WHY are so adamant about this 96 unit building, that’s what I want to know why?
If you want it that bad I want to know why? What is it about this building that has pure passion for it? Please explain your reasoning. If money is your motivation for it..then don’t even bother explaining, cause that’s a bogus answer from anyone who thinks this is a get rich industry.
I’m just curios as to why this property and why do you have no other ones of interest you didn’t mention. I can name about 12 properties if asked of my interest in RE.
I hate to be rude but it’s out of your reach, range, or anything your going to be able to accomplish. Unless you have a really compelling answer for me.....Plus, how long do you think it will wait for you to fund 20 million to buy it? Stop focusing on whatever it is with this 96 unit and start out with multiple places if interest THAT are feasible going by your profile.
Rental Property Investor · Campbell, CA · Member since 2017 · 419 posts · 499 votes
8y
@Charles Richardson, how about you post a link to the deal and get feedback about it. You’ll learn a lot about the process just by seeing what the experts here have to say about it. And if it truly is a great deal, who knows... maybe something will come of it.
Investor · New York, NY · Member since 2014 · 153 posts · 126 votes
8y
@Charles Richardson I first want to congratulate you on being motivated & having some ambition.
Now I have a couple of questions regarding your question/goal:
1. When you say " I found an apt compl" - what exactly did you do to find it?
- Did you find it online & analyzed the property and found it to be a good deal based on your analysIs?
(You know a good deal by knowing the market, so hopefully you know yours)
- Did a friend tell you about this or did you go driving for dollars and tracked the owner down?
(off market - investors love these)
Point I am making is , you need to find some sort of value to this property that makes it sellable to a buyer. Just because you found it online somewhere doesn't mean is a good deal.
2. How many deals similar to this one have you done?
If none, then Manage your expectations... understand that you may or may not succeed this time around but you will LEARN A TON!
3. Whats your goal & outcome?
If you just want to make some quick cash because you lost your job, why not try wholesaling something where the buyer pool is much larger? I think you would find an end buyer for a $25k-$200k wholesale deal much faster (More people have access to this type of cash) then a $21M 96 unit apt Complex.
Just some questions to spark a thought process. Best of luck in whichever way you decide to go!
Investor · Philadelphia, PA · Member since 2017 · 100 posts · 50 votes
8y
Wow this is one of those situations where I don’t want to hurt your feelings or anything however, you need to learn how to crawl before you can walk before you can run and run before you can fly.
Another way you can look at it is what can you offer to an investor who may be able to help you out in this deal (in other words what can you bring to the table) you are 46 so you have to have some life experiences that may be able to help either you or a group of investors out. It’s not like you can’t do it it’s more like how can I do it or who/how can I help others do it and in the process gain the experience for another deal in the future. Anyways good luck and remember you have a whole community here that is always ready willing and able to help however possible. Good luck!