MB 039: Don't Think You Can Do Your First Apartment Deal (Then Listen To This)

This episode is a bit different than the norm because I am the one being interviewed! JP Moses with realestatemogul.com interviews me about apartment building investing and raising money. I talk a bit about my journey, the struggles I’ve had and why many people dismiss apartment building investing as a wealth creating strategy for themselves. We discuss the myths and realities of getting started with apartment building investing and how to overcome the initial roadblocks.   Key Takeaways: [4:02] Success is riddled with mistakes and failures  [6:02] You have to be willing to operate in an environment where you can’t control everything and be at peace with that. [11:59] Key components that make a deal worth doing. [13:24] Why there is less speculation in commercial real estate than in single family investing. [13:56] Very few great deals are going to be in your backyard. [14:10] The best way to find deals in through relationships with brokers.  [16:35] Loopnet.com is useful in finding brokers to start relationships with. [20:14] People dismiss apartment building investing for these 3 reasons: I don’t have the money. I don’t have the experience. It’s so overwhelming I don’t know where to start. [21:40] Flipping houses or investing in single family doesn’t give you credit when it comes to investing in multifamily dwelling. [22:25] If a broker is asking you qualifying questions they’ve already classified you as a newbie. [27:00] Even in stable apartment building investments you need to be interacting with your property manager on a consistent basis so you don’t lose touch. [31:45] The right way to introduce yourself to a broker. [34:55] Putting together a sample deal for potential investors. [45:37] How to make money on deals you can’t pull the trigger on yourself. [48:29] Don’t spend money in the due diligence process until you are 98% sure you are going to get the deal done. [53:04] Invest in your education. Everything else can be achieved with hustle.