How Many Tools Are in Your Multifamily Tool Belt?

So I want to talk about all the team members you need to have in your tool belt when you're going out there analyzing the multifamily property and this is going to go on both sides. This is going to be building up your team in a market and also people or maybe partners that you want to have accessible for you, so of course you do have to have some way of generating leads, so if you're not doing that yourself, you may need to have access to brokers which is your lifeline to properties out there, they're the ones who are the frontline, that is out there working the phones, that have the reputation, are aware of the sellers out there and have the background that really has the leads come to them first.

Beyond that, there are wholesalers for multifamily just like there are wholesalers for single-family, beyond that, you can also now in-house hire on a lead manager, hire on an acquisitions person, you can do things like third-party, outsource this through sites like UpWork or Fiverr where you provide lists of people and have them cold call, there are now other ways that you can generate leads, from direct mail, so these are all ways that you can now build up that point of just finding the leads. Next is going to be analyzing leads or analyzing basically opportunities that come in front of you, when you have the opportunities, you are going to now want to be able to have other people around you that can support yourself and support what you are coming to and with that, they're going to help make sure that the deal that you find is as good as you really think it is and people you can use again is lenders, because of course the lenders are going to want to make sure that their lending on a great deal for you and they're also going to have a ton of data on other properties in that area or area or sub market that they've lent on before to really help you access how in tune you are to your expenses, how in tune you are to what you're doing for reserves, also your property managers are a great source that have locally, to be able to tell you how much you're going to be able to see in rent bumps, how much you're going to be able to see in expenses, past that also you could hire on a company that just analyzing properties for you and this could be that, I know people that come in and they're bringing in interns and with those interns they basically provide them with their analysis tool, show them how they want to underwrite the deals and then lock them into a dark room somewhere and send them a ton of deals that and have them break down the deals that make sense and only then does the GP or sponsor get involved to look at the deals.

In the next step past now lead generation and underwriting you want to have your equity source, now you're building up your team members and of course this can be in anything, if you're syndicating the deal, this comes in one context, if you're just going to be doing this out of pocket or with another partner, this comes to another context, you do need to have a sponsor for the deals, you can qualify and have the credit to be able to qualify for the loan, you also need to have investors and those investors are going to either be in a limited or a passive role or an active role, these will be other people that have to make up your team.

Beyond this, you need to have insurance people that are going to be able to provide the proper insurance to make sure that you are safe into the property and you're providing the right insurance for the property, whether it be general liability or property insurance or anything else that may be required by the lender. Are you in a flood zone, things of that in magnitude, there are other key components out there that you want to think of, use cost segregation to your advantage for when you're buying a property? Now of course, you don't want to use this as a tool to buy property, but use this as something in your tool belt to put out there, when you actually do have the property there are other people now for team members have we talked about providing laundry contracts and you have a laundry vendor, do you have a cable contract, so is there a cable vendor, is there a utility reimbursement company that can help you monitor your utilities and make sure you're maximizing on your utilities and there are different state rules based in the States States.

The discounts that you can qualify for whether or not you're able to, with the right term pool, utilities and go out there and bargain for the best price or you stuck, just going against one provider, so right now we have team members for finding deals analyzing deals and then having equity source and other team members. You want to have a pool of lenders that you can source for the opportunity that comes in hands, not every lender is going to be right for every opportunity and not every opportunity is going to be right for the lender, we like to look at deals, when we do come across an opportunity that basically passes a sniff test and we want to take it to that next step, then we look at what would be great debt for the property, we don't put the debt in mind and then say, okay let's find a property to fit within this box, we look at it like, great we found an opportunity what is going to be the best opportunity for debt, so an example is we have an opportunity right now under contract and the financials are well, they're not existent and so they really just almost do not exist.

Mom-and-pop owner owned the property forever, so taking this to a certain type of lender, possibly agency is not going to be the easiest thing, because we don't have the track record to show them, even though the guys owned the property for twenty-five years, he hasn't been tracking what he's doing, that's why it one makes the opportunity great, but two makes the opportunity difficult, because what is happening now at the property, it's hard to substantiate, because there's no paper track, so with that, we have to look at what are our sources of opportunities for lending, whether it be on the debt side and the equity side and what can we actually do with this. And so we can access it and find what would be for us, the best use for this property, so we've come up with a couple of ideal candidates, I've reached out to them and these are not new people that we're meeting these people that we've built up over the years to be, have them accessible, so when we did come across an opportunity to fit this type of lender we could reach out to them and bring it to them and early I've had that track record made, so now we have deal analysis, we have to find deals, we have partners for equity side now, we have partners for debt side, we have cost segregation, we have laundry and we have cable beyond that.

You can think of all the other ways that you may be able to find contracts, cell tower contracts, it can be some people have talked about u-haul contracts, having u-hauls, basically parked trucks on there for people to move back and forth and just paying you commission or whatever it is to use the trucks, so think about all the different partnerships that and team members that you need on your side, if you're thinking about your team that is basically your internal team, you want to make sure really that you have four boxes checked, you either have the time, the money, the knowledge, and a credit.

Last one is you have the knowledge to be able to find out what are the key pieces to the deal that makes sense and what really can take this across the finish line, so make sure you're thinking about this from a high-level view of what are all the pieces, I need and then start breaking them down and start building out your team now and it may sound like a lot of people, but this is the people that you're going to need and there's actually a lot more to it, past that, you're going to want to build out, but you want to have all these people readily accessible to you, so when you're ready to act, you can pull on these people, because other people do. If you are investing out of state, you want to have your boots on the ground, that maybe your property management company, but you want to continue to build that out, so you can be as versed in the market as possible.

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