All Forum Posts by: Michael Ealy

 Exactly Steven.

And not only that...people think that BIG deals mean that they are harder to do or riskier.

Nothing can be further from the truth.

Sometimes, big deals are easier to do than smaller ones. For the longest time hedge funds or institutional investors, they focus on apartments and commercial properties because they can get scale and management is actually easier vs houses. It was only during the 2008-2009 Great Recession that house prices dropped low enough that they become interested in acquiring tens of thousands of these SFRs.

So if BIG money finds bigger deals easier to manage, that is telling you something isn't it?

The question now for most people is raising capital for bigger deals...I like what Robert Kiyosaki said: instead of saying "I can't afford it" when encountering a great (but) BIG deal...is to ask the question "How can I afford it?"

What trips people up is usually how they think, not so much what resources they have or don't have.

 Raul,

I agree - it's hard to start off with a BIG deal right off the bat. And yes, doing a few small deals helps build credibility.

That's why my suggestion is to figure out how to scale up as fast as you can. Which means you need to have done a few small deals and all you need to do is scale up. For that, once you have credibility (and actually made mistakes on your dime before making mistakes on someone else's), raising capital is much easier.

Now small and big is a matter of perspective also. What's big for you can be small for another.

I guess the whole point of this forum post is to challenge yourself and push yourself to bigger and better deals...because, just based on many years of doing this, the bigger deals are, believe it or not, less hassles and less headaches than the small ones.

 Cool Grant.

It's an honor you chimed in.

Is this really your profile? How come you only have 1 post?

Yup - I got a few haters here already.

 Patrick, you can ask the City of Cincinnati to confirm it for yourself that this proclamation comes from the city. 

Sure - anyone can apply to get a day proclaimed after themselves BUT, not everyone gets approved by the city. You have to have done something impactful before they can approve it. And people who know me are the ones who applied for it - not me. The city approved it.

I have been the President of Corryville Community council and have brought in investment and development dollars for that part of the city.

 Ryan,

Thanks for chiming in.

The way to do it is as follows:

1. Learn as much as you can about the property type you want to invest in. I like apartments and hotels but you don't have to do the same property types as I do. Attend webinars, seminars, read books, talk to people. That's your KNOW-HOW.

2. Network with as many people as you can.

"Normal" and broke people try to do everything on their own.

1 percenters seek out the people who are better than them who can do the things they want to do. And all they do is play "match maker" and put the whole thing together.

So by networking tirelessly, you will meet the right people who will help you (but you have to provide value to them first so they will provide value to you). This is your KNOW-WHO. I've found that KNOW-WHO is even more important than know-how. NO wonder it has been said that your networth is a function of your network.

3. Develop your leadership skills and communication skills

Those 2 skills will make you MILLIONS. BIG deal real estate investing is a TEAM sport. I can't raise capital without the help of my SEC attorney. I can't manage my apartments and hotels without my professional managers. I can't even paint a house - so I have contractors to do that.

Hiring, firing, developing people and teams - you need leadership and communication skills.

Makes sense?

 Thanks for chiming in and supporting my point of view.

Where do you invest in and how's your market for multi family?

In Cincinnati, 100+ units are few and far between and those that become available gets gobbled up by institutional players. I found my niche to be between 20-90 units. They're too small for BIG money but too big for the small landlord.

Anna, I am not a fan of self-management. I mean that's how I started but it stunted my growth for several years because I can't do other deals.

Focus on what you're good at and seek out other people who are better than you in things that you're not strong at. 

What are you good at?

What are the things you're struggling in?

What resources do you have?

What resources do you lack?

Based on your answers above, then formulate a plan to reach whatever goals you set.

Hope that's helpful.

I don't know why you think I submitted it myself. I did not. People who know me submitted it and the city approved it. I've done so much for the city of Cincinnati. You can apply for a "proclamation" but they don't give it willy-nilly to just about anyone.

 Even now, out of 45 houses, 1 or 2 of them every month becomes negative cashflow because of vacancy or unforeseen repairs. I want to get rid of them because they're messing up my cashflow.

 Go ask the City of Cincinnati so they can confirm it for you.