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.
I am in the same boat but the water i am on is nice and calm. What i am trying to say its possible. First off let me say my credit score is 700 and just got discharged from a chapter 11 . i do have previous property and all 5 properties are paid off . i can use as leverage but this is about you man . so i also like you want 100 units and heres how i am actually in the process i spent 2 years looking for apartment complexes everytime one pops up on the MLS iam looking at it and calling finally found this family who owns 80 units and they ran it in a way that they cut corners massively and were losing tenants where almost the units were empty or month to month renters . I knew they wanted out but they were stuck on there old ways and i finally i got them to agree to sell it to me because i will invest my time and the little money i have to make that property look in/out one unit at a time until a bank loans me money to buy it from them . there is alot of property owners who just want out . so iam almost there 80% rent roll and moving them in and the property owners are happy with disbelief of the 1 and 2 year contracts renters have signed and are happy cause they see a light at the end of the tunnel like you should to , forget what people say do it the way you know how then teach us how you did it . you see my profile picture thats a homeless landscaper and all the landscape tools for my complex . his dream was to have an account like this complex,so now all the landscapers in town dont understand how he got this account . the same as i did i looked and asked he seen that grass, bushes,weeds and knew it was his calling so when you pass by your next apartment building ask and you will see.
How to do this - you need to meet people in the multifamily game and show them the deal to see what they think and tell them your story and offer sweat equity into the deal. Its that simple. Focus on finding people that are in that space and show them your deal. You'll find out quickly if you have a deal worth pursuing.
@Charles Richardson Just read your post and a few of the responses. I think its awesome that you want financial freedom and are attracted to income producing real estate (most people wouldn't or couldn't even come up with the idea to do so).
I think its an incredible idea and in order to pull something like this off you need to analyze the property, average vacancy, expenses/ income, cost of debt (mortgage plus interest) and factor everything in. Once you do so you will know what your looking at and how to sell it to other investors.
Use @Michael Blank deal analyzer to do this, its not only the best spreadsheet to run numbers but it comes with 10 short videos and case studies of how to do it.
I was on a similar path and wanted to start out with a ton of units. After tons of failed attempts to raise the capital needed I said F it and now am working on closing a 4 unit deal with my own money using a FHA loan (allows 3.5% down payment if you live in one unit for 12 months) while making income from the other 3. After you move out you can use the proceeds to invest another property.
@Charles Richardson This is awesome! There are lots of really interesting ideas on here for sure, and I love trying to figure out how I would take down a $21M complex... however, I work the Lehigh Valley as well (Allentown, Bethlehem, and Easton). $218K per apartment is VERY likely not a deal here.
From my experience, please look more toward the heart of this market: $800 to $1600 rentals. I have actually run across several properties in Allentown for free (or nearly so), and those kind of deals are not terribly rare. The middle market here is doing well, and there are plenty of $50k to $75k base-hit deals to cut your teeth on. Analyzing this deal and determining what is possible / profitable will be valuable academically, but buying it sounds like financial ruin to me. JMHO.
I am very surprised at some of the not so encouraging comments u have received. I am in the opposite position as I have some knowledge & experience, great funding sources for larger projects, but don’t have the projects.
There are basically 3 ways to bring value to any business venture:
1) Expertise, Knowledge, Experience
2) Funding
3) Project
In your case, you have a project/property, that I am going to assume you have evaluated to some degree, crunched the numbers, preliminarily determined the deal makes sense & have a story/strategy to realizing a profit with this property. If you haven’t, go back and do so!
Now, you need to attract and enlist those who will see benefit in the project, add their value, and together bring the project to fruition.
That may seem overly simplistic but it’s not rocket science. I have actually been involved with NASA projects and with vision, funding, and a great team Anything is possible!