My first ever 44 Unit MF apartment closed in Dec. 2020

My first ever 44 Unit MF apartment closed in Dec. 2020

New to Real Estate · New York, NY · Member since 2019 · 234 posts · 264 votes

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 

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Rental Property Investor · Bronx, NY · Member since 2011 · 193 posts · 322 votes
5y

Yosef!!!!! The part about "self-education is not equivalent to taking action" .... Man!!!! Not enough people realize that, just take that first step bc otherwise you'll never progress and your story symbolizes just that! Great way to lead by example and I'm so proud to say I know you and am part of your extended fam! Great job and can't wait to see what the rest of this year holds for you!

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  • New to Real Estate · New York, NY · Member since 2019 · 234 posts · 264 votes
    5y
    Originally posted by @Elin Anderson:

    @Yosef Lee Great story, I myself have not started yet, I am in the Military and should be moving duty station soon. But I have not taken that step yet. I really want to start with flipping and then make my way to actual rentals, preferably in the Northern Eastern states.

    What’s your next move after this one? And how was the process, how did you feel while you were making such huge transaction?

    Thank you Elin! First of all, thank you for your service for the county. I have a cousin in the US army as well. I think you are already in the right path just thinking about doing it. Start educating yourself and taking actions one by one. Flipping can be very profitable. I haven't done any but saw people are making money from it. But one thing is that it's is transactional, so once you flip, you lost it. You need to find another one to do the same. I recommend to quickly transit to rental side of business. 

    My next move is to work on the 68 Uni that's under contract. My team is actively underwriting deals and we will have more. I'll post it when the next closing happens.  Being involved in this transaction has been fascinating man. I can't tell you enough how much I think about this. When I wake up and When I go to sleep. I think about multifamily. lol You will not regret. Jump on the wagon!

    If you have any question, you can always DM me and I'll share what I learned. Thanks. Yosef

  • New to Real Estate · New York, NY · Member since 2019 · 234 posts · 264 votes
    5y
    Originally posted by @Joshua McMillion:

    @Elin Anderson

    Investing in real estate while in the military is one of the best decision I have made for my financial future. There are several unique strategies  to get in with no or low money down. I own two properties currently and am growing to three, hopefully four investment properties this year. If you ever want to connect shoot me a DM. 

    Sincerely 

    Josh


    Thank you Josh! First of all, thank you for your service for the country. Thank you reaching out to Elin for further guidance! This is what I like about RE investing and BP. People are willing to help out others to guide through. Elin get connected with Josh and see what he's been doing! Yosef 

  • New to Real Estate · New York, NY · Member since 2019 · 234 posts · 264 votes
    5y
    Originally posted by @Shaun Mahoney:

    @Yosef Lee Congratulations man good stuff!

    Thank you Shaun! I appreciate that! Yosef 

  • New to Real Estate · New York, NY · Member since 2019 · 234 posts · 264 votes
    5y
    Originally posted by @Moises B.:

    Congratulations!  You set a goal and demolished it!

     Thank you Moises! I appreciate that! Yes let's set goals and demolish them in 2021! Yosef

  • New to Real Estate · New York, NY · Member since 2019 · 234 posts · 264 votes
    5y
    Originally posted by @Hadar Orkibi:

    @Yosef Lee thank you for the kind words!! Marco and I are delighted to have you in the MIH Mastermmind. 

    But the fact is that the teacher can open the door, BUT the student needs to walk through it!

    You have done AMAZINGLY well, no surprise because you are committed and giving it 200%. 

    You Joined the Amazing community of Jake & Gino and then Joined MIH, so that kind of commitment and action speaks for itsselfs! 

    Thank you Hadar! joining the MIH Mastermind has been one of the best choices I have ever made. Extraordinary group of highly motivated investors. Thank you for your guidance! Let's continue to crush goals! Yosef  

  • New to Real Estate · New York, NY · Member since 2019 · 234 posts · 264 votes
    5y
    Originally posted by @Carlos Ptriawan:

    Thanks Yosef for an explanation. What's the PM charges? what's the unpredicted capex expense or maintenance that you find during purchase?

    < a Few months ago I almost plan to buy 10 MF units too but finally end up with multiple duplexes across states, it's still 10 units though :) definitely I shall learn from you >

    Thank you Carlos. PM is charging 5% of monthly gross rent. So far there has not been any unpredicted capex expense or maintenance as the inspection was pretty thorough we were able to spot all the issues and were able to get $100K seller credit instead of getting it repaired by the seller. Multiple duplexes for 10 units are still impressive! LEt's connect and keep in touch! Yosef  

  • Property Manager · Odenton, MD · Member since 2021 · 1 post · 1 vote
    5y

    @Yosef Lee

    Awesome Story Brother! Definitely inspired me to go bigger! Good luck in you’re journey.

  • Washington, DC · Member since 2015 · 55 posts · 13 votes
    5y

    @Yosef Lee congratulations!!! Great story

  • Rental Property Investor · Queens, NY · Member since 2020 · 14 posts · 7 votes
    5y

    Hey @Yosef Lee congratulations on your deal! This is a major step in the right Direction. Thanks for sharing your story, I’m

    Glad you were able to educate yourself and connect with like minded individuals. I’m happy to see Investors from this community set out a goal then take massive action to accomplish it. Much success to you!

  • Investor · Morrisville, PA · Member since 2017 · 7 posts · 2 votes
    5y

    @Yosef Lee congrats on your success! Great inspiration, Yosef!

  • Member since 2021 · 5 posts · 3 votes
    5y

    @Yosef Lee

    Thank you for sharing this very inspiring story. I am a newbie and eager to find my way. I hope to write my own success post this year. I guess you feel unstoppable now.

  • Hadar OrkibiPro Member
    Rental Property Investor · USA / NZ · Member since 2016 · 1k+ posts · 812 votes
    5y

    Absolutely @Yosef Lee "my brosef"!

    I'm looking forward to hearing more details about the latest deal you are working on. 

  • Fort Worth, TX · Member since 2021 · 92 posts · 32 votes
    5y

    @Yosef Lee congratulations I'm new to real estate as well. I'm educating myself everyday. When we set goals and put our mind to accomplishing something we always succeed, maybe not how we planned but we get there!

  • New York, NY · Member since 2020 · 1 post · 2 votes
    5y

    @Yosef Lee

    Congratulations! Where can I find your virtual meet-up? I’m also in New York City.

  • Wholesaler · Bellingham, WA · Member since 2020 · 7 posts · 3 votes
    5y

    @Yosef Lee this was a wonderful story. I am inspired and I look forward to acquiring my first multifamily in 2021. I would love to connect with you.

  • Investor · VP, General Manager · Member since 2021 · 23 posts · 21 votes
    5y

    @Yosef Lee awesome story. I will referente it over and over. One of my goals for your. Righr now I am on STR with SFR in Texas only

  • Rental Property Investor · Washington, DC · Member since 2019 · 28 posts · 21 votes
    5y

    @Yosef Lee how much did you put down out of your own pocket?

  • New to Real Estate · New York, NY · Member since 2019 · 234 posts · 264 votes
    5y
    Originally posted by @JJ Jackson:

    Hello, Yosef, Thanks for sharing the details of your deal. I sent you a couple of direct-message questions that I hope you will take a minute to answer, so I wanted to point you to check your inbox please.

    Thanks a lot. 

    Josh Jackson 

    St George, UT / Jackson County MO

    Thank you Josh!! I'll definitely check my inbox and answer all your questions! Please bear with me moment, because I literally got about 200 comments/messages from this post (And it's still coming!!), and I'm trying to answer as best as I can one by one. It took some time to get here lol. But again, I assure you that I'll reach your questions and answer them. Sorry if I made you to wait. Have a good day! Yosef 

  • New to Real Estate · New York, NY · Member since 2019 · 234 posts · 264 votes
    5y
    Originally posted by @Alan Stovesand:

    Yosef,

    Wonderful story of determination.  So happy to see you have fallen in love with the process.  I am new to investing and BP and was wondering where you found the right partners considering you invested out of state? 

    Best,

    Alan

    Thank you Alan! I'll DM you for this. Yosef

  • Mack BensonPro Member
    Rental Property Investor · Woodbury, MN · Member since 2018 · 299 posts · 299 votes
    5y

    Way to go @Yosef Brosef!

  • New to Real Estate · New York, NY · Member since 2019 · 234 posts · 264 votes
    5y
    Originally posted by @JD McKelvey:

    This is what I want to get into. My wife and I are currently looking for some buy and hold homes, but I would like to get into multifamily as well.  How do you go about protecting yourself when you go in on a deal with multiple people?

    Thank you JD. First of all, you only go into a deal with people you trust. In general (without going into JV or Syndication), we will create an LLC to hold the property, where everyone needs to sign the operating agreement (contract). At this level, I'm pretty confident that my interest is somewhat protected. Yosef

  • New to Real Estate · New York, NY · Member since 2019 · 234 posts · 264 votes
    5y
    Originally posted by @Joe Sullivan:

    @Yosef Lee Wow what a story my friend! Looking forward to many more deals to come! I'm grateful to call you my friend and business partner!

    JOEEEEE!!!! Thank you for being a good friend and a business partner. You are absolutely crushing it man. I admire your work-ethic and grateful that we were able to take this one down together. Many more to come!! Brosef

  • Rental Property Investor · Member since 2021 · 6 posts · 3 votes
    5y

    @Yosef Lee thanks for the reply 💯

  • Developer · Los Angeles, CA · Member since 2017 · 16 posts · 14 votes
    5y

    Yosef was kind enough to share with me privately the basics of the deal he made with his partners.  This is as important as finding your first deal.  I have a couple of properties I have acquired since joining BP in 2017.  I learned alot.  I'm in the process of making an equity deal for my first ground up construction project now with an investor.  For all the newer investors who may have not made a deal yet, I encourage you to put your personal financial aspirations aside somewhat and just get the first deal done, even if it's not a great deal for you.  Getting the first one done has been the most important step for me.  Don't be afraid, ask questions, ask your investor what they are looking for in the deal, and just do it!  (btw- this is not to say Josef doesn't have a great deal!, but has been my experience)

  • New to Real Estate · New York, NY · Member since 2019 · 234 posts · 264 votes
    5y
    Originally posted by @Ryan Crowley:

    @Yosef Lee congrats on this accomplishment!  this is amazing and very inspirational.  I particularly loved the section on "how you crushed your limiting beliefs." Keep it up!

    Thank you Ryan! I appreciate that. Yeah, I did have the limiting beliefs and hope people can crush them as well! Yosef 

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