How Getting Specific Will Help You When Buying Apartment Buildings

If you want to get invested in investing in apartment buildings and you want it to be able to have brokers, property managers, other investors help you fulfill your wants and needs, you now have to start specifying exactly what you want. You need to target now, ask yourself;

“what is my objective?”,

Your objective might be a cash flow objective, maybe you ultimately want to make $5,000 per month in cash flow after all expenses paid mortgage and other, maybe you want to have a certain amount of assets under management. That can be what you want. You could want to start your own property management company. You want to have so many units that you can manage because you'll be able to make that property management fee.

For instance, let's say we want to make $50,000 a month in cash flow. What does that look like overall? say we've built that back and we find to reach that on a point where we're going to raise money from friends, from families, from others, we're going to do syndication that we need to buy $45 million worth of apartment buildings. If we've identified our market and for example, we’ll say we're in a market like Florida and the average unit cost is around a hundred thousand dollars, how many units do we need to buy to be able to reach that protocol? Imagine it's between 100-unit and a 150-unit complex at 10 to $15 million. If we do that, we could buy four complexes and reshape the objective. Now, these are all fictional numbers. I haven't done the math, so, don't quote me on this, but ideally, I'm getting back to the point here that now we can build out where we want to be, what we're looking for and why we're going to achieve it.

Now I can go to a broker and say;

“Mr or Mrs broker, I'm looking for a hundred to 150 unit BC assets, 10 plus million dollars in the Florida market, could that be something that they could help me with?”

or

“I'm looking for 150 units, 10 plus million dollars BC assets built in 1980 to 2000 in Florida central or Tampa to Orlando”.

If I give them those variables, they could give me a response to something that they could help with, that's a lot better than;

“I want to buy apartment buildings in Florida!”

That could be a 10 unit, new construction, in a war zone, you don't know. But, once you're able to get specific like that, well, then you're going to be able to allow others to help you.

You need to learn your process. You need to learn the terms. You need to find your market, build your team, get specific with what you want and when you do that you're going to be like so many other people in this industry that have made it happened, that have made it the best thing because they have gone out there and tackled, tackle, tackle, tackled what was right in front of them and haven't chased every shiny object out there.