My first ever 44 Unit MF apartment closed in Dec. 2020
I’m sharing a great news! My Real Estate Journey made at night and weekend, allowed me to close my first deal!
December 2020, I officially closed my first investment real estate deal with my partners. It’s a 44 Unit Multifamily Apartment in Lawrence, KS.
I feel like I can write a book about it, but will try to keep it as simple as possible.
Little Intro of myself: Late 30’s, Full time W2 Lawyer in NYC. Father of 2 girls. Did not own any investment property prior to this 44 Unit. (Not even a single, never done any flipping)
Limiting beliefs I crushed: No way I can invest outside of my back yard, How can I trust others, You need lots of money to start, I should start small like single or duplex before going to multifamily. Education is a cost.
How I crushed these limiting beliefs: Through right education, Not listening to the naysayers. Surrounding myself with like minded people. Being connected with mentors and right partners, Relentless action taking. Griding persistently, Trying to add value to the team, Falling in love with the process.
Some of the milestones
Late 2019: I set a goal that I’ll close my first RE deal in 2020. I joined Bigger Pockets.
Self-education through Bigger-pockets and found David Greene's Out of state investing book. Now I felt more confident about investing out of state. By listening to Michael Blank saying he was considered as a newbie when he started MF despite his single family flipping experience, now I decided to go to MF directly skipping single/duplex. By listening to Grant Cardone saying "look at a bigger deal that justifies scalability, now I decided to look at more than 10 Unit as my first deal.
In the begginng I was little ashamed to call myself a Multifamily investor without having any, and didn’t know how to put myself out there and get connected with like minded people. - I sought advice from Bigger Pockets, and somebody encouraged me to be just transparent (Thank you John Casmon). I decided to believe in myself and to just be myself.
March 2020 - Realized Self-education is not equivalent to taking actions. I was passively absorbing the information. Joined a Mentorship Community / Mastermind Group, Started Real Education, Started self-reflection as to who I am and how I can add value, Started putting myself out there looking for partners. This is when Pandemic shut down happened.
May 2020 - Connected with my current partners and started analyzing deals
June 2020 - After reading Joe Fairless' Syndication Book, Started co-hosting a bi-weekly Virtual Meetup in NY regarding multifamily investing, and massive virtual networking started. Covid couldn't stop me.
July 2020 - Became a Co-Host of Multifamily and More meet up - KC chapter with my partner.
August 2020 - 68 Unit Apartment LOI Accepted
September 2020 - 68 Unit under Contract / 44 Unit LOI Accepted
October 2020 - 44 Unit under Contract
December 11, 2020 - 44 Unit closed (JV). (68 Unit closing got pushed a little - Syndication)
Feb. 2021 - 68 Unit expected to be closed within this month.
A few things I learned: Right education. This is critical. But to get the right education, you need to be guided by people who are more experienced than you are. It can be people from bigger pockets, or mentorship program. Right partnership. You need to surround yourself with highly motivated like minded people. Stay away from people who drain your energy and positivity. Make sure you work with those who's interests are aligned with yours. Those who share same work ethic and philosophy. Massive Action Taking. I can't emphasize this enough. Do it. Meet people. Underwrite deals. Talk to the brokers and lenders. Practice your pitch. Last but not least by no means. Fall in love with the process. It's a long process. So enjoy it and be persistent, and patient. You will see the result.
Yosef
Fantastic and inspirational! Thank you Yosef for sharing your story and knowledge. I will be out of state investing as well and really interested to hear more about how you structured your JV with your six investment partners .... and how you all came together and how you determined you determined this partnership fit.
Originally posted by @Miles Pellazar:Fantastic and inspirational! Thank you Yosef for sharing your story and knowledge. I will be out of state investing as well and really interested to hear more about how you structured your JV with your six investment partners .... and how you all came together and how you determined you determined this partnership fit.
Hi Miles! Thank you! Yes let's connect and hop on a zoom call. I'll share what I went through. Yosef
Yosef! I am so inspired after reading this! I'm really impressed with your tenacity and ability to learn so quickly! Kudos!
yosef, how much capital did you need to "buy in" and what else did you bring to the table? What are your responsibilities if any now that you closed and you are out of the State.
Originally posted by @Alexandra Hayden:Yosef! I am so inspired after reading this! I'm really impressed with your tenacity and ability to learn so quickly! Kudos!
Hi Alex!! Sorry just saw this! lol Thank you!
Originally posted by @Brian Plajer:yosef, how much capital did you need to "buy in" and what else did you bring to the table? What are your responsibilities if any now that you closed and you are out of the State.
Hi Brian, sorry just saw this.
DM me for the capital and I'll explain there. As to my role, I started with underwriting, and reading contracts and being a point person between attorneys. Now, I am doing more of asset management and capital raising on top of being responsible for legal due diligence. Thanks.
@Yosef Lee Thank you for sharing your story! Can you share who you chose for your mentorship program?
@Kevin Walsh
Hi Kevin, I will DM you and share my experience!
Congrats Yosef! This is really inspiring and motivating! You mentioned mentorship program, may I ask which one you joined? Do you believe in investing in $30k mentorship programs to help get your first major MF deal done?
Originally posted by @Wan-Yi Sweeting:Congrats Yosef! This is really inspiring and motivating! You mentioned mentorship program, may I ask which one you joined? Do you believe in investing in $30k mentorship programs to help get your first major MF deal done?
Hi Wan-Yi, sorry for the late response to this but I know we are separately connected! Lol
A right mastermind is worth every penny. Again, right mastermind and you need to do your part.
@Yosef Lee This is a great story! I am also a New Yorker looking to invest in the Midwest. How have the property been producing since you closed in 2020? I assume you found a solid management company?
Originally posted by @Andrew Jennings Freerks:@Yosef Lee This is a great story! I am also a New Yorker looking to invest in the Midwest. How have the property been producing since you closed in 2020? I assume you found a solid management company?
Hey Andrew! Thanks for the comment! Yes, this property has been continuously producing (well I set the distribution 🤣) 8% coc and at the end of the year 2021, after building 6 figure capex reserve purely from the cashflow(we needed cuz the bank capex line of credit was almost gone), still had some left over money, so we distributed it as a year end bonus which brought 2021 coc return to closed to 10%. We are preparing to cashout refi in a few months which then the return will jump. Hope this answers your question.
@Yosef Lee thanks for sharing. Are you planning to purchase more out there? Who is doing your MGMT? I know that is the biggest issue with investing from afar.
Originally posted by @Andrew Jennings Freerks:@Yosef Lee thanks for sharing. Are you planning to purchase more out there? Who is doing your MGMT? I know that is the biggest issue with investing from afar.
We closed more in 2021 in MO, OK and OH. Let’s get on a zoom call and network! DM me!
Quote from @Yosef Lee:
Originally posted by @Andrew Jennings Freerks:@Yosef Lee thanks for sharing. Are you planning to purchase more out there? Who is doing your MGMT? I know that is the biggest issue with investing from afar.
We closed more in 2021 in MO, OK and OH. Let’s get on a zoom call and network! DM me!
hi Yosef, where do you find the MF / Multiunit deals?
Quote from @Rong Tan:
Quote from @Yosef Lee:
Originally posted by @Andrew Jennings Freerks:@Yosef Lee thanks for sharing. Are you planning to purchase more out there? Who is doing your MGMT? I know that is the biggest issue with investing from afar.
We closed more in 2021 in MO, OK and OH. Let’s get on a zoom call and network! DM me!
hi Yosef, where do you find the MF / Multiunit deals? @Rong Tan Multiple ways!! DTS (Direct to seller), being on brokers' pocket listing of investors through networking and building relationship for off-market deals, Lead comes from our property management company as well, and partnerships through mastermind / private investor's group members, just to name a few. Let me know if you want to get on a zoom call to network and I'll share what I learned and my experience! Yosef
Hi Yosef, I was truly inspired by your story. I am a 22 year old living in NYC and looking to begin my real estate investing business. My plan is to begin with MTF out of state and am looking for guidance. Would you be willing to connect?
Wow, this is the motivation I need to MAKE IT HAPPEN! Great Job!
Quote from @Ben Winter:
Hi Yosef, I was truly inspired by your story. I am a 22 year old living in NYC and looking to begin my real estate investing business. My plan is to begin with MTF out of state and am looking for guidance. Would you be willing to connect?
Hey Ben! Thank you! All because of the great partners I met through MIH Mastermind and Jake & Gino. Would love to get on a call with you and also would like to invite to our meetup on 3/2/24. Will DM you.
Quote from @Sapphire Wilder:
Wow, this is the motivation I need to MAKE IT HAPPEN! Great Job!
Hi Sapphire! It was great to have connected!! Great that you joined MIH Mastermind! Let's keep MIH! Yosef
Hi Yosef,
Great bio and achievements! I see you are in the NYC area and I live in Manhattan. I’d appreciate any advice and guidance you could offer me as I am looking to start my real estate investing journey. Perhaps we can chat over coffee sometime?
Quote from @David Aruty:
Hi Yosef,
Great bio and achievements! I see you are in the NYC area and I live in Manhattan. I’d appreciate any advice and guidance you could offer me as I am looking to start my real estate investing journey. Perhaps we can chat over coffee sometime?
It was great meeting you over Zoom!! Hope to see you soon in Person on 3/2/24!