All Forum Posts by: Jim Pellerin

It's all about leverage. Leveraging other peoples' time and other people's money. You only need to spend a little bit of time raising money at first. After that, people will be begging you to invest in your deals. And no, you don't need any experience to raise money. Just a lot of tenacity. When I started I knocked on a lot of doors to get my investors. 

And, I'm not talking about investing in other people's deals, I'm talking about running your own syndication or joint venture and you outsource the management and Property Management. No different than if you have a PM managing your SFH or your Multi-Family homes. The big difference is you are super leveraged so the return happens a lot faster.

To me it just seems like a lot of work and takes a lot longer. I've had over 100 properties, which included single family homes, duplexes, triples, 4-plexes. And I have done just about every type of transaction - buy, rent and hold, lease options, vendor take backs, subject to's, 100% financing, fix and flips, and developments. These all take a lot of personal involvement and time to make any kind of money. 

A lot easier way is to do a syndication, joint venture, PE or whatever. Find 10 guys to each put in a $100k. Buy a $4m property. The property goes up 10% which is easy with the right value-add deal. So now the property is worth $4.4M. The profit is $400k divided by 10 investors. You each make $40k. That's a 40% for, not counting net rental profits etc.  

I get confused when I hear people talking about how many deals they've done? Or how many single family homes they own? I dont think this metric neccesarily contributes to the making lots of money.

Why not just go raise some money thru a syndication or joint venture and buy a 100 unit apartment building that has a cap rate of 6 or more. And yes there are deals like that out there. I'm looking at 2 right now. And because you can afford a real property manager you don't care where they are located.

Food for thought.

I am working with a lot of private equity firms and helping them find properties to acquire.

I am using a few realtors but they don't have the volumes I need.

What's the best way to find large (100+ units) off-market multi-unit properties that are for sale or not even being offered yet. 

Either way works. You just have to do some things differently. I have a student in Temecula that is wholesaling. He has a lot of buyers in the area and in San Diego.

Yes. It's a good idea for your own protection. 

@Randall E Collins what were you doing to find properties?

@Ramon Robert Rios where are you located?

Some wholesalers just focus on doing on-market deals. They find a potential deal and negotiate it down to where it's attractive to their cash buyer. Very active cash buyers don't want to spend the time doing this.  

You don't need to quit claim deed the property. Just put in under contract using a purchase and sale agreement and assign the contract.