All Forum Posts by: Daray Olaleye

This is more of a "pre" success story...

I've been fueled with new found inspiration from fickle investors!

I am a 27 year old multifamily syndicator in the Dallas area. My partners and I have landed our first MASSIVE deal (250+ unit complex) and have started the money raising process..

Let me give you a very very quick back story...

To make sure you are as attractive as you can be to a prospective passive investor, you need to have a few thing.. At the top of that list is Credibility and Experience; two things that are pretty hard to attain overnight. 

Here's how I attained both in a relatively short time:

-I worked for a Big 4 Accounting Firm auditing the financial statements of the biggest names in real estate.. This provided me with great accounting knowledge of the industry.. check.

-I consult for a 26 Billion dollar hedge fund and perform thorough analysis of investments and their projections.. This provides me with great finance knowledge of the industry.. check.

-I started investing by buying single family homes.. This provides me with on the ground landlording experience.. check

-I move next to purchasing small multifamily and even brought in an investor who currently gets a 1K check every month.. This provides me with real life investor relationship experience and a success track record.. check

-I started what is now a worldwide podcast interviewing successful real estate investor and entrepreneurs.. this shortened the learning curve and provided me with insights from the best minds in the game.. check.

-I constructed my team to consist of the cream of the crop Property Management Team in Dallas, a partner that owns and operates 200M in Real Estate, and I moved to the city that I invest so that I can submerge myself in the market... super check.

I don't think that the credibility and experience I've amassed is anything special, but I do think that it sufficient enough to entice warm traffic for a conversation about investing with us..

By warm traffic I mean family and friends who have consistently asked that I let them know when I get a deal that they'd be able to participate in (and my goodness what a deal this is). 

I knew it was a no brainer once I crunched the numbers especially because a wise man once said "if you have a great deal, the money will follow". 

Week 1 in my money raising efforts, I quickly realized that the above statement is flawed.. 

Raising money (for your first deal) is not easy - don't let anyone tell you any different. People who have vowed to invest with you will all of a sudden become ghost once the deal is real. 

I created a list of 100 potential investors to narrow down to what I can my "Dream 25". These are the 25 people that will have first dibs on the deals we get in the pipeline.

I love the concept and believe that it will be a well oiled machine after this first major deal.. But in the meantime the adversity has been tremendous.. 

My inspiration after contacting 100 potential investors to create my Dream 25 List is now stemming from all the "Sure, I'll invest with you" a few months back to *ring ring ring* *voicemail* aka *crickets*.

The thing about disappointment as an entrepreneur is that you can re-calibrate and go at it again..

It's so easy to be discouraged, it's so easy to throw in the towel, it's so easy to convince yourself that this may not be your strong suit.. 

But nobody ever said success is easy, so don't think the path to success will be easy either.. 

So guess what, I'm creating a new 100 potential investor list tomorrow and will again make 100 phone calls... Then rinse and repeat until my goal is met..

Failures aren't failures but lessons if you choose to keep going.. Failures manifest into success if you see it through.. 

Mark my words. I will get it done. Then I'll have a true success story to brag (modestly) about and hopefully inspire others coming after me.. 

Daray

Sure, no problem.

They operate fully online. The individuals I worked with were in California and Illinois and the property I purchased is in Texas. 

Also, I'm not sure why she would tell you that, but don't fret as that's totally false.

Sounds great. Look forward to attending!

I used a lender called Guaranteed Rate to house hack my last 4-plex. They aren't too high on my recommendation list but they got the job done. Hope this helps.

House-hacking a 4-Plex sounds like your best route to get your foot in the door. If you can get an FHA, even better. On my last deal, I closed on a 500k multifamily using this very method and I didn't have 20k.

You have very little to start with to go after 5+ units without seller financing or partnering.

I agree, being self employed is an obstacle. One of many that you'll have to overcome (the most important one is getting started). Just be of the mindset that you'll find a way. In this particular instance, education is key. I'm sure that there are many people that could chime in on the best workaround/sources to get financing. 

Hope this helps.

Sounds great. Looking forward to this.

Sounds great. I'll have to look into this!

Hi All -

A few of you may recognize my profile as last week my post was the featured Success Story in the BiggerPockets Newsletter. The post can be found here:

https://www.biggerpockets.com/forums/223/topics/44...

Well, if you're up to date on that story then you'll know that I have a brand new 4 plex added to my portfolio of properties. 1 thing you may not know about each accomplishment following my birthday -

Most recent 4-Plex closing - As for the 4-Plex, I was a bit flustered after closing because I was not aware that I would be closing when I did. We were originally set to close May 3rd but closing got pushed back everyday until the end of the month for estranged reasons - I was used to this so after a while I stopped anticipating when I would close so when it finally happened, I was taken back. Since it was at the very end of the month, I knew that I had to meet tenants, gather information and set systems in place with ample time for hiccups since their rent was due so soon (June 1st) due to a late closing. The night before the 1st, I had finally gotten everything set up, set out instructional emails for rent, maintenance and repairs and prepared to meet my tenants the next morning with everything laid out. I went to sleep nervous but excited for the new venture. That next morning, on the 1st, I wake up to a bunch of missed calls and text messages - they were all from my tenants. More specifically, a tenant who was out of town, sent me a screenshot of a snapchat (social media for those of us who aren't familiar with snapchat) of fire trucks and ambulances asking if I was aware of what was going on and that she was fearful that the 4-Plex had caught on fire and burned to the ground. I immediately called her to verify all the details that she knew while simultaneously jumping out of bed and dashing to the property. Her biggest concern was that the property was no longer standing and her concerns were valid. I called all the other tenants my whole way there and no one answered the phone - I was terrified. When I arrived, it (the property) was indeed still there. *whew*. After thorough investigation I found out that a water heater bust caused the fire. The fire was contained and luckily no one was injured. It was a mess to deal with. It cost me my day as I coordinated efforts to get an electrician and then a plumber on scene on a Saturday afternoon! It also cost me a good amount of the money to buy a brand new water heater, materials, and labor even though I had yet to receive for rent. Talk about welcoming gifts right? 

In the end, I view this situation as a lesson learned. Although there was not much I could do by way of prevention, my learned came from the experience and knowledge that I gained from hands on experience. You really can't learn grit and perseverance from a text book. It's these real life everyday experiences that teach us the skills we need to keep moving forward. Are problems are not over once the deal is closed. As much as I went through to lock this deal down, one would expect smooth sailing or at the very least a breather. Well as entrepreneurs, we cannot dictate these things. It is our job to put out fires (no pun) so just put on your hard hat and get to work!

Daray