MB 108: Analyzing 100 Multifamily Deals to Find the ONE – With Andrew Cushman

Would you be willing to make 4,500 agonizing phone calls to land your first property? How about going to the trouble of analyzing 100 deals to find one good one? It goes without saying that we have unparalleled opportunities here in the US, but success is unlikely to fall into your lap. So, if you are looking to become a successful multifamily investor, you have to START: Learn to analyze deals properly and get one done. Andrew Cushman is the principal of Vantage Point Acquisitions, a multifamily investment firm out of Southern California. Andrew has a BS in Chemical Engineering from Texas A&M University, and he worked for a Cargill Foods for seven years before leaving the corporate world for real estate investment. He completed 24 profitable single family flips before making the transition to apartment building acquisitions in 2010. Since then, Andrew has successfully syndicated 1,800 units that continue to provide investors with strong returns. Today, Andrew joins me to share his story, explaining how an article in the Wall Street Journal inspired his real estate career and why he made the transition from pre-foreclosure flips to multifamily. He walks us through his first deal, a 92-unit property in Macon, Georgia, discussing his mistakes around failing to vet investors and underestimating renovation costs. Andrew offers advice for aspiring investors on beginning with the end in mind, building a network of investors, and partnering for instant legitimacy. Listen in for Andrew’s insight into the benefits of B properties and learn why finding a good deal in the current climate is challenging—but not impossible! Key Takeaways How Andrew got into real estate Chemical engineering degree Tried other businesses Article in WSJ re: flipping houses Four years in single family (pre-foreclosures) Andrew’s shift to multifamily ‘Only as good as last flip’ Looking for true financial freedom Andrew’s first multifamily deal Hired mentor as guide 92-unit deal in Macon, GA 75% vacant, built in 1960’s All-cash syndication ($1.2M raise) How Andrew financed his first deal Failed to vet investors, lost ¾ of $800K Reached out to entire network Extended closing three times Seller agreed to carry $200K note Raised just enough to close Continued to raise for renovation What Andrew learned from his first deal Properly screen neighborhood Better estimate rehab costs Better track rehab spending Hire right contractors Andrew’s advice around doing your first deal Choose deal just outside comfort zone Begin with end in mind, work backwards ‘Don’t buy in the hood’ Don’t underestimate rehab costs Learn to analyze deals and get one done Andrew’s take on the challenge of finding a great deal Must be willing to analyze 100 to find one Don’t look for home run on first deal Andrew’s insight for aspiring investors who lack capital Start analyzing deals Build network of potential investors (sample deal) The value in partnering Saves from mistakes Creates legitimacy Go farther, faster Andrew’s advice to his 22-year-old self Go straight into multifamily B properties = highest return with least effort Andrew’s perfect day Surf in morning Work at home office Meet wife for lunch Family dinner Work in evening What Andrew is looking forward to Deal with colleague met at conference Climb, ski Mount Shasta Connect with