MFM Live: The Importance of Your 1st Deal.

Lets talk about how to take down your 1st deal, and lets discuss how important that 1st deal is for you to be successful long-term…. Your first deal is NOT as hard as people make it seem, and this first deal can set you up for a life-time of real estate profits. Watch this video to learn more from a panel of investors who own and control 3000+ apartments

VIDEO TRANSCRIPTION
00:00
let’s see and the record button has been
00:03
hit so this is multi-family Messrs live
00:06
this is number two our personal ISM was
00:09
in January it is February we’re going to
00:13
do this every month third Monday of the
00:15
month so mark your calendars we’re going
00:18
to do educational series on top of guest
00:20
speakers next month our plan is to have
00:22
a really cool or really outstanding a
00:24
really awesome fantastic guest speaker
00:27
and we’re not really going to announce
00:28
that for another couple weeks but I’m
00:30
pretty excited about who it is so what
00:34
is multifamily masters we are rapidly
00:37
becoming the world’s largest multifamily
00:40
/ cash-flow platform we have 60 meetups
00:44
across the country we have an online
00:46
newsletter that we send out every month
00:49
we have a Facebook group that I just hit
00:52
the link in the comments during that
00:54
Facebook group if you’re not already in
00:55
it I hit a link to our YouTube page
00:57
which is where we will post the
00:59
recording of this call probably tomorrow
01:02
on top of that we are coming out with a
01:06
mastermind program mastermind program if
01:09
you are interested in learning this
01:10
business networking in this business
01:12
hanging out with like-minded individuals
01:14
while learning it and building the teams
01:16
around you you will definitely want to
01:18
reach out to us a little bit about us
01:21
mister pouchy resides in California he’s
01:25
the gentleman that started all of this
01:26
with 14 meetups just in California now
01:30
we have about 60 or so across the world
01:32
our goal by the end of summertime is to
01:34
probably have a hundred and twenty or so
01:37
we almost have a waiting list but if
01:39
you’re interested in becoming a host a
01:42
sponsor affiliated with our meetup
01:46
program reach out to us it’s a great way
01:48
to get exposure for yourself it’s a
01:50
great way for you to become a
01:51
professional in this space it wins and
01:54
we take the guesswork out of it
01:57
we provide education not only on how to
02:01
run a meet-up but real estate in general
02:04
so that’s a little bit about us and what
02:07
we’re doing how is in California a
02:09
thousand plus apartments Ferris is in
02:12
Texas a thousand plus apart
02:13
in Atlanta in Texas my name is garrison
02:16
Gilbert I live in Baltimore Maryland a
02:18
couple hundred apartments a couple
02:21
thousand houses throughout the last 20
02:23
years I know a thing or two when it
02:24
comes to real estate but as a group the
02:27
three of us collectively are here to
02:29
help you win with that being said go
02:32
ahead mr. Powell appreciate it garrison
02:35
so yeah my name is pal chi and Mike
02:38
garrison mentioned you know I always
02:39
helped start this two years ago a little
02:42
more than two years ago and this has
02:43
grown significantly you know I went from
02:45
eight people meeting inside of a hotel
02:47
lobbies and now we’re having over sixty
02:48
chapters and we have a couple chapters
02:50
around the world super happy about that
02:53
and we’re popping up new chapters all
02:54
the time so I mean we got just fine I
02:57
just took a look really quickly at some
02:59
of the new chapters coming up we have
03:00
some ones coming up in San Jose
03:02
California Dallas Dallas had lunges we
03:06
have two going in Dallas and our second
03:09
one will be operating pretty much next
03:10
month we had one in Laverne California
03:13
which is part of Southern California
03:15
another another area of Southern
03:16
California that that just had their
03:18
first meetup as well and looks like
03:22
Alabama Birmingham Alabama is on the
03:24
list anybody here from Birmingham
03:25
Alabama that’s area it’s though
03:27
Birmingham Alabama we got some great
03:29
great leaders to be out there and we
03:33
continue to grow a lot of our a lot of
03:35
our ones that started out fairly
03:37
recently started with a couple people
03:39
you know maybe maybe like five ten
03:42
people and now they’re up at its some
03:44
good numbers so they’re in there
03:45
significantly more than 20 20 to 30
03:48
people
03:48
San Francisco is growing well really
03:50
well Durango Colorado growing out really
03:53
well
03:54
Phoenix Arizona another one’s growing
03:56
really really well so super happy about
03:58
it and like Garrison mentioned if you’re
04:00
you’re interested in joining in and you
04:02
have a certain location that we we’re
04:04
not we don’t have any presence in we are
04:06
very interested in joining have you guys
04:09
join us and so I think from here we’re
04:13
gonna go ahead and get started with our
04:15
presentation is that right first I think
04:19
so all right awesome
04:21
so I’ll just really quickly I think
04:22
we’re gonna do a presentation Farris
04:25
garrison and I are going to do a
04:26
presentation
04:27
do for probably about 20-25 minutes
04:30
after that we’re gonna go ahead into
04:33
some Q&A so it can be Q&A on this
04:35
specific topic or it’s Q&A on anything
04:37
else then we’re happy to get into that
04:39
as well all right all right let me get
04:44
my screen going you know one thing I
04:47
want to mention what pal just talked
04:48
about when I started this business I
04:50
didn’t have anyone that I could pick
04:52
their brain I didn’t know anybody with a
04:54
couple hundred or a couple thousand
04:55
apartments multifamily masses is your
04:58
chance to hang out with some people that
05:00
have some big portfolios and are doing
05:01
some really cool things and that’s gonna
05:03
help you skyrocket your business or take
05:05
full advantage of this write your
05:07
questions down and think of anything
05:09
that you want to ask at the end of this
05:10
sorry about that fares go for my man no
05:13
problems you guys can see my screen says
05:15
how to go from 0 to 1 deals in the next
05:16
90 days got it all right so I guess
05:20
before I get started maybe I give a
05:21
quick introduction about myself and
05:23
where the stat came from for those who
05:24
don’t know I’m not a chance of a skilled
05:26
garrison and s Powell but I try to be
05:29
but you know collectively three of us
05:32
like we said earlier right we’re excited
05:33
to put these MSM lives on the goal is
05:35
really providing high value content and
05:37
one of the things I think that comes up
05:39
very often is about how do people get
05:40
started and this deck actually came from
05:43
a conference that we put on with our
05:45
friend Kenny though we actually had the
05:47
last one this past weekend Multi Family
05:49
investor network and one of the things
05:52
we didn’t have in the very first one was
05:55
this deck right a lot of people kept
05:56
asking okay great there was a ton of
05:58
information you know really valuable but
06:00
what’s the easiest ways to get started
06:02
so after the first one
06:03
you know I guess we’ve had four of them
06:04
right the past one was in Houston two
06:06
weekends ago and then the next one’s
06:07
coming up in San Francisco in June but
06:09
after the second one we started putting
06:11
this decks together and really we’ve
06:13
gotten a lot of good reception for it in
06:14
terms of just teaching people the
06:16
different ways to get started so today’s
06:19
presentation will be about 20 minutes
06:21
and I’m going to kind of go through this
06:22
really speak to kind of all the
06:24
different ways to get started and you
06:26
know me garrison college kind of walk
06:27
through different parts of this and then
06:30
at the end we’ll open up a QA because
06:32
it’s it’s not a live audience it’s an
06:34
online audience I’m gonna you know it’s
06:36
gonna be hard to warm you guys up but
06:37
hopefully you guys get some you know
06:39
enjoyment from it and it
06:40
a little bit fun but with that said I
06:43
guess I will go ahead and get started so
06:45
you know how to go from zero to one
06:47
dealers right in the next 90 days and so
06:49
first things first you know this is
06:52
there’s gonna we’re going to talk
06:53
through a lot of different things
06:54
including legal CPA all that fun stuff
06:56
we’re not professionals please talk to
06:58
your professional in each of those
07:00
subject right where we are professionals
07:02
in real estate which is very different
07:03
than taking our legal advice and our tax
07:06
advice so please consult your expert for
07:07
that but with that said right this deck
07:11
is going to do a little bit of a ramp up
07:13
in terms of kind of talking through so
07:16
the simplest way to get started all the
07:18
way up to buying your own deal right and
07:20
all the things you need to think about
07:22
while doing that right and so the very
07:24
first one is investing passively this is
07:26
how I started actually before I started
07:28
disrupt equity and I think same thing
07:30
with my partner been investing passively
07:32
is kind of the very first taste that
07:34
most people get into you know getting
07:36
into multifamily investing right and so
07:40
really what is passive investing it’s
07:41
exactly what it sounds like right you
07:43
are investing passively the passive part
07:46
is really you’re not having to do a lot
07:48
in terms of being involved in the deal
07:50
right you are sitting on the sidelines
07:53
you have an expert who is this quote
07:55
unquote the sponsor right who is you
07:57
know finding the deal putting the deal
07:59
together executing the business plan and
08:01
paying you returns and so for us a lot
08:04
of our investors will show up whenever
08:07
we have a deal they’ll watch the webinar
08:09
right fill out the paperwork why are the
08:11
funds and you know sit back and relax
08:14
really right and so you know kind of
08:17
going through this law that’s I think I
08:18
actually just talked through all those
08:19
points right finding the finding
08:22
inventing the sponsor is the very first
08:23
thing talk to people you know talk to
08:25
pal talk to garrison talk to me talk to
08:27
other people if you’re looking to invest
08:29
with someone who you don’t know right
08:31
and you know I like to tell investors be
08:34
candid with them ask them questions or
08:36
hard questions personal questions kind
08:38
of anything you need to do to get
08:40
comfortable because you are basically
08:42
going to partner with this person and
08:44
you’re going to be you know most deals
08:45
are three to seven year plays right and
08:48
so you need to be comfortable to person
08:49
and understand you know have they done
08:51
what they say they’re going to do in the
08:53
past can they
08:54
do it it doesn’t still match that and
08:55
the other big part of it too is does
08:57
that deal match your criteria right I
09:00
like to say that as sponsors a lot of
09:01
what we do is matching deals to equity
09:03
right and different equity you know
09:05
investors look for different things
09:07
right we have a deal that’s a deep
09:09
value-added right now that we’re
09:11
probably going to sell over the summer
09:12
but it’s a homerun in the return side
09:14
right but there is no cashflow the first
09:16
year that’s what we presented right
09:18
other deals might have cash flow much
09:19
sooner on right and you know that’s
09:22
great but they might not home run it as
09:24
quickly right and so different people
09:26
want different things and you have to
09:27
ask yourself as a passive what are you
09:29
looking for doesn’t match the business
09:31
plan and you know can that person really
09:34
deliver right and so you know here’s
09:38
some of the main benefits right if but
09:40
it really does boil down to fill out the
09:41
paperwork make a wire right you are a
09:45
partner in the business and the entity
09:47
and so for those of you that don’t know
09:49
right really quickly that’s it to have
09:51
this on this next slide but a
09:52
syndication all it is is basically
09:54
pulling together people’s money to do a
09:56
bigger and better thing so if I have
09:58
$50,000 I can go buy a $200,000 house
10:01
leverage but if I have $50,000 in
10:04
garrison has $50,000 and 20 of
10:06
Garrison’s friends at $50,000 right well
10:09
now we have a lot of money what are the
10:11
three million dollars of cash that
10:12
three-minute sorry – two million a
10:15
whatever whatever the number is you know
10:17
that leverage comes up to be about eight
10:18
million dollars right so you can buy a
10:20
much bigger asset now that asset can
10:22
have staff it can have systems etc and
10:24
so syndication you’re typically creating
10:27
an LLC that owns the asset and as a pass
10:30
investor they get the tax benefits
10:32
you know the managers are doing all the
10:33
work and they’re getting compensated for
10:35
it as well and you know most of the time
10:38
passes are not having to get involved
10:40
unless they want to try to vote out the
10:42
manager and or vote on a refire cell
10:44
right and so you know fundamentally this
10:47
passive investment to me is kind of the
10:49
best way to get started and for me it
10:51
was a good way to see what are other
10:52
people doing and how do I make sure that
10:54
we are the best operators right and you
10:56
don’t know how to be the best unless you
10:58
can see what other people are doing so
11:01
I’ll pause there garrison pal did you
11:02
all have anything else to kind of speak
11:04
to that as well you know and part of the
11:07
we
11:07
we sort of touched on this really
11:09
quickly in the very beginning is that as
11:11
a passive investor you don’t have the
11:13
liability that the active investors do
11:15
the general partnership does so you’re
11:18
not going to go to jail you’re not going
11:20
to be either one like yours you’re not
11:22
gonna you’re not gonna have that
11:23
anything you’re not liable as a limited
11:26
partner and I think it’s kind of curious
11:29
but if you ask a lot of well I don’t
11:31
know if you ask a lot but I care
11:33
I know a lot of general partners around
11:34
you know Fred’s with a good amount of
11:36
them and and I feel like this and I feel
11:40
like a lot of them feel like the same
11:41
way is that down the line the end goal
11:44
is probably to be a passive investor you
11:46
know it’s like that’s that’s really like
11:49
yeah I’d like to be in the business but
11:51
I’d like to just know the business and
11:52
then just sign cheques and just say hey
11:53
yeah you guys go do it and you know send
11:56
me the quarterly update and things like
11:58
that I think that’s I think that’s
11:59
really where it that’s really where I’d
12:01
like to be so right now I’m good you
12:09
covered it all all right all right see I
12:12
made it easier to go I’ll take all the
12:14
talking points yeah all right let’s get
12:17
going then so you know and again this is
12:20
back to the syndication model right
12:22
sponsors are finding the bills and
12:23
putting the deal together the year
12:25
raising the money with investors and you
12:27
know I like what I’m passing I like to
12:30
look for sponsors that are investing in
12:31
the deal as well so they’re both on the
12:33
pass today and the act aside and we you
12:35
know I personally co-investing every one
12:37
of our deals as well and the sponsors
12:39
are executing that business plan like
12:41
pal mentioned and do in the monthly
12:43
updates or quarterly updates you know
12:44
ask your sponsor they’re dealing with
12:46
distributions and dealing with the tax
12:48
paperwork all that fun stuff so yeah ask
12:51
me how I know this the UH I’ll just say
12:53
it’s tax season right now I think it’s
12:54
not fun to go do to all the K ones and
12:57
all the paperwork for all the deals at
12:58
the same time that’s all hands on deck
13:00
of the company but all right so with
13:03
that said the next common way and this
13:05
is what you start to see a lot more of
13:07
right now is people kind of you know
13:09
graduate up the ladder right is really
13:11
adding value to get into a deal right
13:14
and you know these deals are big deals
13:18
there’s a lot of steps involved none
13:21
hard but there’s many of them right and
13:24
different people can have different
13:26
strengths and therefore can add
13:27
different kinds of value and so what I’m
13:30
gonna do is basically kind of run
13:32
through a couple of very common ways
13:34
right and kind of speak to each of them
13:35
and so the very first one is finding a
13:39
deal all right I’d like to tell people
13:40
anyone has a deal regardless if it’s – –
13:43
I mean really I guess not too small but
13:45
if it’s too big or they don’t know what
13:47
they’re doing but they know with the
13:48
deal please feel free to reach out to me
13:50
garrison or pal we will help get that
13:52
deal done right because finding a deal
13:54
especially in this market it’s the
13:56
hardest part honestly a lot of the steps
13:58
but it may not be the most valuable part
14:00
but it is a hard part that you know does
14:03
add a lot of value to people then so I
14:05
mean right now for us we’re having to
14:07
kiss more frogs than anyone I know I
14:09
mean for those who they don’t know my
14:10
background is software so I’ve been able
14:11
to leverage a lot on my software skills
14:13
and kind of really help you know help us
14:14
scale at disrupt equity and be a lot
14:17
more efficient and a lot of it is really
14:19
around how do we source the most deals
14:21
and how do we underwrite the most deals
14:23
and unfortunately I mean it even with
14:25
all that it’s still very hard to find a
14:26
deal and so if someone was to bring a
14:29
deal to me or another sponsor right
14:31
that’s adding value right that sponsor
14:34
will help you get that deal done you
14:35
know bring it down to the finish line
14:36
and you know you would get compensated
14:38
for that right that’s worth something
14:40
and so finding a deal is a good one but
14:44
people can do it because all it is a
14:46
sweat equity and if you’re good with
14:48
numbers under running a deal is
14:49
something that can’t add value right
14:51
I’ve had people approach me say hey can
14:53
i underwrite all of your deals that come
14:55
through I’ll be very quick I’ll get you
14:56
to turn around in 48 hours I’m a numbers
14:59
guy etc etc but I want a piece of the
15:02
deal that we if I do underwrite one that
15:04
you end up buying hey that’s worth
15:05
something right so that’s another thing
15:07
you can approach a sponsor and you know
15:09
I’m just speaking holistically right
15:10
these are depending on the sponsor
15:12
depending on what they have etcetera but
15:14
these are just a different facets to get
15:16
involved right another I’m asked to have
15:19
very common one is around capital right
15:21
and partnering with people around
15:23
helping with capital and you know
15:25
there’s a lot of caveats with that one
15:27
so I want people to kind of be aware
15:28
that it’s not about just bringing money
15:30
but that’s a way to give you an entry
15:32
point into getting into a deal and I
15:34
think it
15:35
stationed in that deal right there’s a
15:37
lot of legal ramifications the written
15:38
capitals and just definitely keep that
15:40
in mind
15:40
but it’s a way you approach someone
15:42
saying look I can help raise capital I
15:43
can help with the balance sheet and I
15:45
can find a deal right that’s I think a
15:47
tremendous amount of value to someone um
15:50
another one that’s actually a pretty
15:52
good one as well boots on the ground
15:53
right maybe someone is buying in a
15:56
market that they’re not in but you live
15:58
in that market right and you’re able to
16:00
basically offer them value whether
16:01
you’re saying look I’m going to drop by
16:02
the property two times a week I’m saying
16:04
you felt any pictures all stick stop by
16:06
sticking on the staff
16:07
I’ll deal with any vendors that may need
16:09
to show up etc buddy that’s adding audio
16:12
and then I was kind of the next one is
16:16
really the balance sheet so for those of
16:18
you that don’t know us all anton on this
16:21
call so he’s a blending expert he can
16:23
definitely speak to you all them and
16:24
more depth but there’s a lot of
16:26
requirements around taking on debt or
16:28
any of these deals and really the
16:31
biggest kind of maybe that’s hard a big
16:33
one is around for funds doing a twenty
16:35
million dollar loan right median all the
16:38
GPS have to show that we have both a
16:40
combined net worth of twenty million
16:42
dollars and that is gonna be liquid
16:46
right so I don’t have a quick knee or I
16:50
don’t have all the net worth I partner
16:52
with someone like Jefferson or anyone
16:55
who might have some of that right and so
16:57
you know it’s basically I’ve had people
17:01
approach me sick look I just sold the
17:03
business I just did X Y Z I has a lot of
17:05
cash cash in the bank right now partner
17:10
review right and again that’s adding
17:12
value and to give people perspective
17:14
right now you know I’m looking at much
17:17
bigger deals that I know we can show the
17:19
network city but I have people in mind
17:21
who you know many many many million is
17:25
always a take deal down right I’m
17:27
hitting those apartments last because
17:31
I’m going to go through the basic
17:32
construction management and this one
17:34
again it varies my sponsor there if I
17:36
wasn’t had and thirty about the deal I
17:38
just feel you know we have required
17:41
tremendous amount of exterior
17:43
rehab and empirica maybe it’s all you
17:47
know the law
18:04
yeah hey Faris
18:06
hey your computers breaking up power
18:09
myself or having difficulty hearing you
18:11
yeah it’s kind of charming maybe maybe
18:13
it’s just rubbing against my shirt I’ll
18:14
hold my headset a little out sorry but I
18:17
was saying is basically construction
18:19
management right so there’s you know
18:21
we’ve had someone who we basically give
18:22
them a piece of the GP and they were on
18:25
point to basically help drive all the
18:27
rehabbing construction and that’s adding
18:30
a lot of value especially on that deal
18:31
that we had it had 30 down units you
18:34
know it’s a lot of work that person has
18:35
done a fantastic job and it’s freed me
18:37
up and it’s helped them kind of get more
18:40
in the deal and so again those are kind
18:43
of some of the key ways that people can
18:45
get involved and again approach a
18:47
sponsor and tell them look how can I add
18:50
value I could do XY and Z and have that
18:52
open dialogue right because again that’s
18:55
how you can help get into a deal and
18:56
then you know you can talk to that
18:57
sponsor and tell them I want to see how
18:59
the lending works or I want to see how
19:01
the monthly asset management calls go or
19:03
the weekly asset management calls go or
19:05
I want to help with the monthly reports
19:06
right it helps you get visibility into
19:08
an existing operation to kind of get
19:11
going yeah I just want to add to
19:16
everybody to in like you know we all all
19:19
of us you know comment from a different
19:21
way and the way that for me it’s easiest
19:25
to sort of understand as I kind of think
19:27
of it as three different aspects of a
19:29
deal right when you’re looking at this
19:30
type of syndication you’re trying to get
19:32
involved in in adding value in with a
19:34
sponsor is that do you want to get added
19:37
value on the front end or the
19:39
acquisition side I trying to think of it
19:41
acquisitions where that’s finding a deal
19:42
underwriting a deal you know doing
19:46
things like that potentially even the
19:47
balance sheet then closing the loan and
19:49
things those type of things all sort of
19:51
the acquisition side and then the
19:54
raising capital as I kind of feel is
19:56
like the middle side are you good or do
19:58
you have a strong Network where you
20:00
could raise capital
20:02
um that’s you know you got to figure out
20:04
what side that you know you like or are
20:07
you more on the construction side where
20:08
you’re you’re an Operations person
20:10
you’re a project manager you know that
20:12
kind of stuff you know Akeno
20:13
construction and you know how to get a
20:16
project from you know a-to-z and so I
20:19
tend to think of those as took three
20:21
different three separate areas and then
20:24
if you think of it as acquisitions
20:26
capital slash your network or
20:29
construction you kind of break down and
20:32
sort of what do you feel like you’re
20:33
strong in and you may be really strong
20:35
in one you may be kind of strong and
20:38
another one and may be weaker and
20:39
another one but it’s good to figure out
20:41
where your strength is and that way when
20:43
you do approach a sponsor like Faris is
20:46
mentioning you’re you’re talking with
20:47
them about what you could bring to the
20:48
table you don’t want to just say I can
20:50
do anything I can I can find a deal I
20:52
can underwrite I can raise capital I can
20:53
I can run your construction it’s like
20:55
that’s pretty difficult to do for
20:58
somebody who’s just starting out so but
20:59
if you’re really like I’m really good at
21:01
underwriting deals I’ve been doing I’ve
21:03
been underwriting you know ten deals a
21:05
day or you know ten deals a week for
21:08
past like 50 weeks and you know they’re
21:10
just been smaller but I’d like to
21:12
underwrite you know the size that you’re
21:13
talking about and and you’re really good
21:15
at that and you know that can max where
21:17
you can really add some value to people
21:21
yeah absolutely I mean it’s all about
21:25
being focused explaining your pitch
21:27
because it is a sales pitch and you know
21:29
– accident – I know people like to ask
21:31
how much is each thing worth right it’s
21:33
all negotiation right VIN so to give you
21:35
an example you know I know guys who have
21:38
ultra high-net-worth balance sheets but
21:40
at the same time let’s say just to give
21:42
an example let’s say it’s a fifteen
21:43
million dollar deal and we have fourteen
21:45
million dollars covered we’re only short
21:48
a million dollars on the valuation on
21:49
the balance sheet well guess what that
21:51
million is worth a lot less right
21:53
because you know what it felt we’re only
21:55
a million short even though that person
21:56
has 40 million dollars of net worth or
21:58
whatever right it’s just kind of rich
22:00
relative to what true value they’re
22:02
bringing and that applies for all these
22:07
all right and then I guess I’ll move on
22:11
so as my good friend John Rockefeller
22:13
once said because we’re you know
22:15
we go way back you know basically said
22:17
I’d rather earn 1% of 100 people’s
22:19
effort than 100 percent of my own
22:21
efforts right and again it’s about
22:23
leverage you know every step of the way
22:25
right as real estate investors we love
22:27
leverage and it’s about smart leverage
22:30
not kind of dumb reckless leverage right
22:32
and so includes leveraging debt equity
22:34
time experience and contacts of people
22:37
and so it’s absolutely kind of a team
22:40
sport and that’s actually to me the
22:42
things that attract me to kind of
22:43
getting into syndication from because
22:46
people ask often how did I get in
22:47
software I get into real estate from
22:49
software right into me what attracts me
22:51
to it is that it’s a people’s game the
22:53
team sport and it’s a numbers game and
22:55
then the kind of a third component for
22:56
me personally is that if the systems and
22:58
operations game alright so then on to
23:02
the next one to try to stick to our
23:03
tight timeline because garrison is
23:06
really tough on us if we go over on time
23:08
basically the next one is buying your
23:10
own deal so who here wants to buy their
23:12
own deal this is where I hear people say
23:14
oh me me me but since its online no
23:16
one’s going to say anything you know I
23:18
think this is the thing really a lot of
23:20
people fixate on and I do highly
23:21
recommend looking at the step before it
23:23
right around adding value first because
23:25
it helps you avoid the mistakes and
23:27
really this picture kind of sums it up
23:29
right buying your own deal there’s a lot
23:33
of things that happen to kind of get
23:34
through it right and it’s it’s again
23:37
like I said earlier
23:38
none of it is tremendously hard but
23:40
there’s a lot of steps and making sure
23:43
you know kind of what you’re doing
23:45
you’re not missing anything right so the
23:48
first part is finding the deal right and
23:50
so what do you need to think about when
23:51
finding the deal well first of all you
23:53
know what area right are you looking you
23:56
know what are the markets you’re looking
23:57
at and for us we like to look at markets
23:59
that you know have job growth half
24:00
population growth those are kind of
24:01
obvious things but also the price points
24:04
make sense right we’re based in Houston
24:06
we left Houston you know we’ve never
24:08
owned a deal in Houston we’ve had deals
24:10
in Beaumont we left Houston what two
24:12
years ago to go to Atlanta because at
24:14
the time Atlanta was another really
24:16
attractive market but the price points
24:18
made sense right whereas now I feel like
24:20
we’re about to get priced out of Atlanta
24:22
because price points are getting too
24:23
high I can’t buy them out enough at the
24:26
price point that I need to get their
24:27
returns I need and so you need to
24:28
understand what
24:29
you’re buying and kind of the
24:30
ramifications of that and then tied to
24:33
that to is you know what’s the size deal
24:35
you’re looking for right trying to buy a
24:37
five 10 million dollar deal is very
24:39
different than trying to buy a twenty
24:40
thirty million dollar deal right it’s a
24:42
lot of the same steps but there’s
24:45
different things to kind of keep in mind
24:46
right and make sure it fit for you and
24:48
then you know the office one what other
24:50
returns look like right are you looking
24:52
for you know some people just want to
24:54
really say they own that really sexy
24:56
deal down the street some people just
24:58
want to really make money okay so you
25:00
know think about what returns you’re
25:02
looking for and what asset class and
25:04
location that needs to be tied to right
25:06
and I guess coupled out with the next
25:07
one which is what condition is that deal
25:09
in right the other thing is who’s on my
25:12
team all right from my partner and I’m
25:14
we have a big list of people that we
25:16
know could be potential partners in
25:17
different aspects right and we really
25:19
look at anytime we get a deal we’re like
25:21
okay who what’s the team we’re gonna put
25:22
together and that includes you know not
25:24
just the immediate GP but also partners
25:27
who’s gonna help do the debt right who’s
25:29
gonna help do the insurance who’s gonna
25:32
help do all of these different aspects
25:33
and then next is still flow I’m I
25:36
already kind of beat that one to death a
25:39
little bit but I mean you know deal flow
25:41
is critical right and how do you go out
25:43
and talk to the brokers build those
25:45
relationships right a big part of what
25:46
we do is building strong broker
25:48
relationships right to me brokers our
25:50
friends i text them all the time you
25:52
know we we send them gifts vice versa
25:54
right if you’re gonna go do your own
25:56
deal you need be able to compete with
25:57
that honestly right and so keep that in
25:59
mind because again right now it’s uh
26:01
it’s you know to mark the market is
26:04
really heated and so deal flow is kind
26:06
of critical in getting the right deals
26:07
at the right time so right now we’re
26:09
doing a did a big deal in corporates
26:11
that basically we were pretty much the
26:13
only one that had got to make an offer
26:15
on that deal right so that’s that’s huge
26:18
and then lesson Elise is kind of do you
26:20
have the time right it does take work it
26:23
is no longer a passive opportunity it’s
26:26
an active opportunity so those are all
26:29
the things that kind of go into just the
26:30
upfront thoughts before you really you
26:32
know kind of get going pal garrison
26:36
anything to add to that no I mean you
26:39
know I went through some of these
26:41
processes to myself when I was
26:43
I was buying everything yeah you you go
26:46
through them like you want to buy your
26:48
own you want a partner and there are
26:51
certainly advantages of either way but
26:53
the truth is – you will run out of money
26:56
eventually in you if you just buy on
27:00
your own you know you will have to find
27:01
some partners and you mean it’s gonna be
27:04
hard to just purchase these on your own
27:07
and without anybody else involved and to
27:10
continue to be able to do that
27:12
eventually you need to bring on some
27:14
friends partners investors whatever it
27:17
is to continue this you know after a
27:20
while yeah and maybe pick on you a
27:22
little bit now so maybe talk about the
27:24
size of the deal right what were you
27:26
looking for for your first deal and then
27:28
now if you’re gonna do a deal what would
27:30
you look for right what has changed some
27:31
people can kind of get an idea of you
27:34
know how you and then why did it change
27:36
right I think those two go hand-in-hand
27:37
together yeah so you know when I did my
27:40
first deal my first apartment was a 40
27:42
unit apartment building so 4-0 that was
27:46
in Indianapolis here I live in Los
27:47
Angeles and you know did the whole thing
27:51
right find it finance it run it
27:55
afterwards that whole thing and then you
27:58
know once it’s done it’s not done just
28:01
because it closed you know I will get us
28:02
now the whole thing starts right you’re
28:04
know you’re an owner you got a you got
28:06
to be on that you got to be doing
28:08
everything involved so it took me about
28:11
a year later to find my next apartment
28:13
and it was a 61 unit apartment building
28:15
but I couldn’t do it by myself I had to
28:17
bring in some partners to do that one
28:18
and you know again but it was mostly me
28:22
doing the same thing finding the deal
28:24
financing the deal figuring out all that
28:26
doing all getting ready with the asset
28:28
management and the operations of the
28:30
property and anything that need to be
28:32
done but quickly after that I mean I
28:35
realized at that point I was pretty
28:36
strapped in terms of time I didn’t have
28:39
any more time to do this and and it
28:41
takes another year to get another one I
28:43
was you know I just didn’t have the time
28:45
to continue to do that and and no more
28:48
money so I realized really quickly I
28:51
need I need to partner with this and now
28:54
that I’m partnering on deals you know
28:56
it’s sort of the men
28:57
sighs and I’m looking at is probably 100
28:59
you know I’m sorry you’re looking at 100
29:00
hundred 50 range but I mean I’ve done
29:02
deals with partners in the you know
29:04
Paris and everything that these are two
29:05
hundred unit apartment buildings no
29:07
there’s other ones that I’ve been
29:08
involved in two hundred units so they’re
29:10
a lot bigger and they require a lot more
29:12
partners and a lot more things going on
29:14
but I mean it’s definitely where I would
29:18
rather be rather than being in the 40 to
29:21
60 unit range right where I was before
29:23
so that helps absolutely well pal said
29:29
yeah there’s a lot of issues at the
29:30
forty to sixty unit range and we can go
29:32
over those and another time or someone
29:33
can ask questions later yeah yeah sure
29:37
garrison India where you’re gonna say
29:39
anything or good you know in general
29:42
he’s gonna kind of reiterate a little
29:43
bit of what Powell said I came from the
29:44
single-family space I came in with the
29:46
mentality that I could do absolutely
29:47
everything by myself I can pay for the
29:50
deal I can manage the deal I can run the
29:52
deal I can do everything myself and you
29:56
know the difference between multifamily
29:57
and single-family the biggest difference
29:59
is that it’s a team sport and I got to a
30:01
hundred apartments I ran I pretty much
30:03
ran out of my own personal money and
30:05
then I had to figure out well what the
30:06
hell is next and I was beating myself up
30:09
running around trying to handle
30:11
absolutely everything and since then I
30:14
woke up see this is a team sport and my
30:17
life got so much easier and so much more
30:20
profitable which crazy how that works
30:22
and it’s crazy how they go hand in hand
30:23
you would think that I would be making
30:25
more money whenever I was doing
30:26
everything myself it was actually the
30:28
opposite I’m making a lot more now that
30:30
I have teams around me and when I take
30:32
teams at some ball teams in multiple
30:34
markets yeah and to expand a little bit
30:36
on what garrison said right I mean as
30:38
we’ve been scaling up kind of our
30:41
company the biggest thing I really look
30:43
at is how do I bring in a person that is
30:45
so much more qualified than me to do
30:47
each role right and so because you’re
30:50
hiring on the right people you’re
30:51
partnering the right people the best
30:53
people right you’re able to actually
30:54
operate a lot more efficiently and you
30:56
know I mean be example I like to give it
30:58
the you know for my for me and my asset
31:01
manager has 25 plus years experience my
31:04
property manager has 25 plus user
31:07
experience right together they have more
31:09
years of experience that
31:10
pretty much double my age right they
31:12
know a lot of things that I don’t know
31:14
or things that I wouldn’t have realized
31:16
right and it’s being able to bring them
31:18
in is because these are bigger deals you
31:20
can have you know you can afford it and
31:21
they can help make sure these deals are
31:24
kind of humming and rock and rolling and
31:26
I mean and besides obviously the money
31:30
side and everything the team side is
31:31
great but truthfully one of the reasons
31:32
why I did it do is honestly it’s just
31:34
more fun with a lot of people I mean I
31:36
like people I like being around people I
31:38
like I get I get jazzed up when I hear
31:40
that garrison is closing these big deals
31:42
and he’s got these things going on and
31:44
Ferris is moving on this I’m like yeah
31:45
that’s awesome I want to be part of that
31:47
and I’m like happy to be friends with
31:49
these guys and other people and so I
31:51
have me personally when I was just doing
31:53
like I have my 40 unit by myself sitting
31:55
in front of a computer and like you know
31:58
like writing emails back and forth and
32:00
you know doing spreadsheets and stuff I
32:02
mean I was like I can’t do this for that
32:04
much longer
32:05
so but it’s that accountability piece
32:09
right you feel accountable to your
32:10
partners it makes you work harder and
32:11
you know it’s usually more enjoyable so
32:13
yeah and then fun with it you know I
32:15
look forward to the time I seen
32:16
everybody and things like that so
32:18
absolutely so to kind of maybe really go
32:22
full circle on buying the deal part
32:24
right once you get a deal under contract
32:27
I mean there’s so much that it goes on
32:29
in parallel right so we’re actually at
32:31
this point right now on a deal and
32:32
basically we’re lining up the debt
32:33
tomorrow that should be executed we’re
32:35
lining up the equity that’s been busy
32:38
week just getting that facial in one day
32:39
all the legal part right like I
32:42
mentioned there’s a lot of you are
32:43
raising money right you there’s SEC laws
32:45
you have to follow there’s entity
32:47
paperwork’s PPM’s all this fun stuff
32:49
that has to get created and reviewed
32:52
addition to that title gets queued up
32:54
addition to that insurance gets rockin
32:56
and rollin and began property management
32:59
is rock and roll and on multiple strands
33:01
right they’re doing due diligence and or
33:03
they’re also basically out there kind of
33:05
starting to hire starting to plant for
33:07
tako
33:07
and so all of these things you know
33:10
pretty much happened simultaneously
33:11
right like basically you execute it you
33:13
get it executed PSA and then boom you
33:16
know all of this gets kicked off and so
33:18
definitely a lot of pieces to keep in
33:19
mind and I like to say you know what we
33:23
do is basically
33:24
project management on steroids right how
33:27
do you keep all of these people moving
33:29
forward all of these pieces moving
33:31
forward and you know avoid any issues
33:34
along the way and then you know the
33:41
thing that everyone thinks they tell on
33:42
is buying the deal right but the issue
33:45
is you just bought a multi-million
33:47
dollar business do you understand how to
33:50
operate a multi-billion million-dollar
33:51
business right buying the deal
33:53
truthfully is actually the easiest part
33:54
of a lot of these deals it’s what
33:57
happens after that’s the hard part right
33:58
understanding how to operate and it’s
34:00
not just about hiring on a third party
34:02
property management company and
34:03
basically check me out it’s actually I
34:06
mean you know even whenever we brought
34:08
property management in-house but even
34:09
whenever we have third party it’s about
34:11
staying on top of it keeping track of
34:13
everything making sure everything is
34:14
humming right it’s it’s a lot of hard
34:16
work and again you’re tying to investor
34:19
basically you know like a lot of
34:21
investors they’re you know part of their
34:22
life savings right there’s expectations
34:24
that investors have and need to manage
34:25
that coupled with everything else and so
34:28
I mean really the post-closing is the
34:30
critical part to really keep in mind and
34:32
understand all the work that’s involved
34:33
there it’s not just about closing the
34:35
deal and checking out it’s really about
34:37
how do you you know refine that deal and
34:39
get that business plan executed all
34:44
right and so then you know kind of maybe
34:45
the next 90 days right what are the
34:47
different things to maybe people to do
34:48
first you know educate yourself right
34:51
get your finances in order make sure you
34:53
have a PSS right make sure you have an
34:55
REO if you don’t know what those are go
34:57
research them or go ask Anton see you
34:59
there Anton you know again next thing
35:02
define your investment criteria right
35:04
make sure whether you wanna be passive
35:06
or active understand the types of deals
35:07
you’re looking at and the deals you want
35:09
to get involved in
35:11
next up network with potential partners
35:13
offer it isn’t brokers right like
35:15
Garrison said it’s a team sport like pal
35:17
said it’s a team sport like I said it’s
35:18
a team sport so if you don’t realize
35:20
that it’s a team sport you should really
35:22
keep that in mind and start to build out
35:24
your your network right and then kind of
35:27
last but not least start making offers
35:29
or you know or get involved in a deal
35:31
right whether it’s active or passive and
35:34
so you know that’s baby basically that’s
35:36
really the next 90 days and how to
35:38
going right keep that in mind it’s a lot
35:40
of pieces hopefully it was not too much
35:42
data that we just kind of threw at
35:44
everyone but the idea was to give
35:45
everyone a taste of things and then from
35:47
that people kind of start to figure out
35:48
what avenues they want to go down and
35:51
before we’d open up the Q&A right again
35:54
as Garrison said we’re multi-family
35:55
masters the next MFM live that we’re
35:58
doing is going to be March 16th sorry I
36:00
should not include the word Houston
36:01
there can you tell I took it from
36:02
another deck you know it’s garrison said
36:05
world class speakers awesome education
36:07
and you know no self stitch right the
36:09
idea is about creating value giving back
36:11
to the community and helping people kind
36:13
of succeed you know something to someone
36:18
you mentioned us talk about my skills
36:21
200 unit deals 300 unit deals 80 unit
36:24
deals but this is all about just getting
36:26
your first deal doing something is
36:28
better than doing nothing a little bit
36:30
of cash flow is better than no cash flow
36:32
so take action get traction and let’s
36:37
win pretty much meaning get off your ass
36:39
and let’s do something surround yourself
36:41
with the right people and take the deal
36:43
down learn by doing surround yourself
36:46
with some people who have been there and
36:48
done it so it makes it a lot easier for
36:51
you and your team and your family
36:53
because the goal of this is to provide
36:55
extra income build wealth for you and
36:57
your family all right yeah let’s do K
37:06
nicely on our questions go ahead and
37:07
message them into the chat and we’ll
37:10
maybe you know garrison you wanna read
37:11
them off and we can collectively answer
37:12
them yeah let’s see here I saw a couple
37:17
questions as we were scrolling through
37:18
how if you see anything feel free to
37:20
speak up I’m scrolling up the log right
37:22
now sure there was a question really
37:26
quickly from the very beginning from
37:27
Derek Harper how do you get on the
37:29
newsletter you can email any one of us
37:32
and you can email me if I let Platinum
37:35
Equity Partners comm what you want our
37:37
email lists and you can get involved in
37:39
our newsletter someone else asked about
37:43
do we have meetups in Orange County
37:45
California in general we have meetups in
37:48
a lot of places and every month were
37:50
popping up in additional places
37:52
hey Ferris how accurate is our website
37:55
in regards to current list of meetup
37:57
since we’ve added quite a bit probably
38:00
has not been updated the past few weeks
38:02
right so meetup.com is probably the best
38:04
source and then the website will get
38:06
that updated here in the next week or
38:07
two so what’s up there is some in Orange
38:11
County right there’s one in Lake Forest
38:13
and there’s also one in Fullerton so
38:17
another question here from syndicated
38:19
realities solutions how do you
38:21
effectively find investors for your
38:24
deals ads friends Network etc question
38:27
mark in general you want to tell
38:30
absolutely everybody what you do you
38:32
want to keep a digital business card on
38:34
you you want to get everybody in anybody
38:36
into your CRM into your database this is
38:40
a database driven business the more
38:43
people you know the more people you can
38:45
touch the more seeds you can plant or
38:47
likely or you are to successfully raise
38:50
capital and these guys will definitely
38:51
put you on a couple other yeah I mean
38:55
the answer to me is just all the above
38:56
right keep in mind that there’s
38:58
different types of deals right so for
39:01
example if you see a deal being blasted
39:03
on Facebook right that’s probably what’s
39:05
called the 506 C offering right which
39:08
means that you can share it publicly you
39:11
can go get a billboard on the side of
39:12
the road if you want to but the
39:14
trade-off is that all your investors
39:16
have to be accredited investors and not
39:18
just accredited but as a sponsor you
39:20
have to actually go get third-party
39:22
accreditation which from our experience
39:24
you know there’s actually kind of a pain
39:26
we’ve done both of them you know we
39:27
typically like to do 506 B which is the
39:30
other type of investment opportunity
39:33
offering and essentially with the 506 B
39:36
that’s B for boy you can accept with
39:39
accredited and sophisticated investors
39:41
please go research what those are but
39:44
the nice thing about it is that it’s
39:45
self accreditation right so if garrison
39:48
tells me he’s an accredited investor I
39:49
can believe him right the fault is kind
39:52
of on him I don’t have to go get a third
39:54
party that’s going to go rip apart
39:55
garishness financials and make him do a
39:57
lot of work to give hit their
39:59
rubber-stamp
40:00
and so if you’re doing if I was sick C
40:03
you can blast it around you can tell the
40:04
world about it five of us
40:05
do you have to have any producing
40:07
relationship right so that’s kind of the
40:09
key takeaway awesome okay let me read
40:12
some other questions here so how do you
40:15
find sponsors I’d say things like this
40:20
going to different conferences meetups
40:23
events I mean there there’s a lot of
40:25
sponsors out there right sometimes even
40:27
more than there are passes yeah getting
40:29
else’s are meeting people yeah talk to
40:32
us if you want to talk to meet sponsors
40:33
you know give you a list and go
40:35
interview them go talk to them and we’re
40:36
happy to share other sponsors that we
40:37
would like know and trust yeah we know
40:40
we all know a bunch of them so you know
40:42
happy to do that what do you consider a
40:46
good deal that’s from art what do you
40:48
consider a good deal that could be a I
40:50
could be a long answer but in a short
40:53
way what do you consider a good deal any
40:57
deal Pels dude no I’m kidding basically
40:59
for me a good deal is you know what we
41:01
look for in a deal is we’re looking for
41:03
any deal that’s averaging eight to
41:04
twelve percent cash on cash right we’re
41:06
looking to double on investors money
41:07
five to seven years it’s really
41:09
dependent on the risk you know kind of
41:11
the risk adjusted returns right if it’s
41:13
a beautiful you know let’s say it’s an
41:15
a-minus deal and a pretty decent part of
41:17
a town you know I’m okay doing that you
41:20
know a 7-year play that’s going to get a
41:22
little bit less returns but website is
41:25
we have a deal in Atlanta right now that
41:26
we’re doing that essentially you know
41:28
it’s a sub h-how’d it’s a deep value add
41:31
but it pretty much is right had thirty
41:32
down units it’s got you know a lot of
41:35
work that we had to do but it’s an
41:36
awesome play fantastic price points and
41:38
you know that’s the deal that we knew to
41:42
raise the money it’s got to be homerun
41:44
returns right enough to deal thankfully
41:46
we’re nearing the one-year market it’s
41:47
going really well right and so it’s
41:49
really dependent on the deal and kind of
41:51
how much work it is for both sponsor and
41:53
how much risk is for investors awesome
41:56
guy thank garrison now I pretty much
42:00
reiterate what there’s just and another
42:02
thing that I look for and every deal
42:04
that I get into is I want multiple exit
42:06
strategy I want to make sure that on
42:07
jamup myself or my investors my
42:10
investor’s capital was way more
42:12
important than my capital and I hold
42:15
that very close and dear to my heart
42:16
so exit strategies is definitely
42:19
something I look into when I do look at
42:20
a deal and then I would add to that twos
42:23
yeah as a sponsor is investing in the
42:25
deal right that’s another good one you
42:30
know and another really cool and another
42:31
really cool thing is whenever you run
42:33
your numbers and you analyze your
42:34
properties and then you submit it over
42:36
to a lender they’re gonna double check
42:38
and double verify everything and analyze
42:39
that deal kind of along with you to make
42:42
sure that your teas are dotted and your
42:44
eyes or or your your teas are crossing
42:46
your eyes are dotted so at least you
42:49
have a little bit of a fallback there
42:51
yeah awesome let me see we got about ten
42:55
minutes so let’s the shredded answers
42:58
like a trick as well yeah as quick as
43:00
possible as we can so let me see okay is
43:06
the underwriting process more than using
43:08
a deal analyzer to get to the bottom
43:10
line
43:10
that’s from John yeah I made absolutely
43:14
right there’s a lot to kind of you need
43:16
to think about along that that same vein
43:19
right what was the story are you looking
43:21
at t threes are you looking at t12 does
43:23
the story that the seller is giving you
43:25
makes sense is that business plan
43:27
executable what’s your risk analysis
43:29
right candidate perform if things take a
43:32
dip I mean there’s a lot of other
43:33
factors that kind of need to be
43:35
considered to figure out how likely are
43:37
you to hit those numbers that you’re
43:39
projecting yeah you’re also looking at
43:41
areas right so you’re looking at the
43:43
micro you’re also looking at the
43:45
neighborhoods and in the bigger a city
43:46
or metro itself or so a lot of different
43:50
things in there how about from home that
43:53
you have some gears on and I was going
43:55
to go ahead and go with the next one
43:56
which is Megan Mele when you create an
43:59
LLC how to avoid using your personal
44:02
mailing address simplest answer get a
44:05
registered agent Google registered agent
44:07
in the city and state that you’re in pay
44:10
someone 50 hundred bucks a year can sit
44:13
there at a desk and collect all your
44:14
mail for you so your your info doesn’t
44:17
show up on public record and I think you
44:20
skipped the one garrison if I find a
44:22
deal and bring it to someone with more
44:23
experience how much should I expect it’s
44:26
all about the deal I mean if it’s a deal
44:28
that’s gonna you know triple in a year I
44:30
mean you have a lot more leverage than
44:31
if it’s a deal
44:32
it’s kind of very vanilla so I would say
44:35
you know from 5 to 25% of the deal maybe
44:39
if you want a number but again it really
44:41
varies yeah it depends on how much you
44:43
do yeah there’s a it’s all negotiable as
44:46
well so you know it depends on what your
44:48
other partners how good they are right
44:51
do so yeah and all right what do I need
44:55
you yeah all right so what are used for
45:00
a CRM system we we use activecampaign we
45:03
integrated kind of basically synced with
45:05
po do I mean other ones that people like
45:08
is HubSpot is very popular Zoho CRM etc
45:15
next question would you consider a deal
45:17
in an area that has poor population
45:18
growth but has good numbers cash flow
45:20
cap rate DSC are 9 to 10 percent cash in
45:23
cash it’s in Kansas City ten minute
45:25
drive I mean honestly it’s really about
45:27
what are you looking for in your
45:28
investors right to me if it’s plot I
45:32
mean you know you can find deals like
45:34
that in a lot of places and so if it’s
45:36
only 9 to 10 percent cash on cash
45:37
probably not right I’m looking at you
45:40
know I can get that in better markets so
45:42
if it’s a little bit better then I’d be
45:44
interested personally garrison Powell
45:47
anything to add to that I mean just when
45:49
you consider a deal yourself you got to
45:52
consider also whose gonna be investing
45:53
it right I think so as Ferris is talking
45:55
about you got to consider who’s gonna
45:56
invest in this with you right so I mean
45:59
when you’re when you’re looking at all
46:00
of these you know numbers and things
46:02
like that
46:02
you gotta think okay am I going to be
46:04
able to raise enough money to close this
46:06
deal right that’s what you’re gonna all
46:12
right next question out of 42 unit
46:15
property in a contract with a water
46:16
treatment plant I believe that during
46:17
the ownership will be forced to connect
46:19
to the sewer and cost could be a board
46:21
of three hundred for one thousand how
46:23
would you approach the seller to reach
46:24
an agreement on how we can address that
46:27
now um honestly it’s super super
46:30
specific lot of negotiation one thing
46:32
you could do if you don’t know if it’s
46:33
gonna happen tell them okay how about
46:35
you put three hundred thousand in escrow
46:36
for two years
46:37
right and if it happens great you use
46:40
that money it’s not then he gets it back
46:42
after two years right I mean that’s
46:43
something we’ve done things like that
46:45
but it’s it’s all about
46:52
they passive investor look for in
46:55
deciding to invest with a sponsor maybe
47:01
that one got sent to you garrison I
47:03
don’t I know that game for that is uh I
47:04
think the answer to that is you know
47:07
look at the track record look at the
47:09
business plan doesn’t match what their
47:11
experience has been look at their team
47:13
that’s around them who’s managing it
47:16
have they delivered those type of
47:17
results before how are they investing in
47:19
the deal I like to tell us at El Paso to
47:22
look at what the exit cap is does the
47:24
exit cap make sense right because that’s
47:27
the simplest number that any sponsor can
47:29
tweak to make a bad deal look good and
47:31
so I personally audition to that on the
47:34
passive side I like to find deals that
47:35
are cash flowing right be a cash flow
47:38
investor then you’re not susceptible to
47:40
market conditions as much as if you’re
47:42
just an IRA turbine investor any other
47:45
things you can you can always ask for
47:47
references right you can ask like you
47:49
know who else is invested in your with
47:51
you before and I would like to talk to
47:53
them you know and then ask yeah I’m a
47:54
doctor my doctors asking me what other
47:56
doctors have invested with you can I
47:57
talk to them okay would you compare a
48:02
deal in an area that has poor population
48:06
growth I think we wouldn’t that one
48:09
Garrison yep you’re right you’re right
48:12
alright next one I think from with some
48:14
other deals you are affiliated with that
48:16
we can passively invest with to begin if
48:19
so how much knowledge along the way is
48:21
shared about the mechanics of taking
48:22
down and managing a deal
48:23
I say that’s that’s very sponsor cific
48:26
around what they want to share right now
48:28
involved because I mean you know I think
48:31
if you’re an investor that’s bringing a
48:32
big amount of money to the table you
48:35
have a lot more leverage in terms of
48:36
saying hey to the deal but I want to be
48:40
XYZ hey where’s all your mics breaking
48:45
up again
48:46
that’s weird except title then I’m not
48:48
even on Wi-Fi okay I’m not saying it’s
48:51
just all let me go shake you a sponsor
48:53
right you’re bringing a big amount you
48:55
have more leverage than if you’re just
48:57
bringing a smaller amount right it’s
48:58
just like everyone else
49:01
um next question I have a counting
49:05
background some another person still
49:06
under writing should be something I’m
49:08
comfortable with I don’t have the net
49:09
worth money et cetera I would be
49:12
possible for me to partner with someone
49:13
who has money Network good place tonight
49:16
answered absolutely it’s about getting
49:18
out there networking with people finding
49:21
to the strengths that you don’t or the
49:22
weaknesses that you have absolutely
49:26
Justin you can do it you just you got to
49:28
get started but like Garrison mentioned
49:30
before like get started get get going
49:32
you know get something going now here’s
49:37
another question I love a certain area
49:39
but there is little to no inventory and
49:42
it’s competitive
49:43
would you consider buying land and
49:45
building there is land available really
49:49
it all boils down to the numbers if the
49:51
numbers say it makes sense we do it if
49:53
they say it doesn’t make sense and it’s
49:54
cheaper to buy and renovate or buy and
49:57
hold than we do that and that with that
49:59
being said if you’re brand new to
50:02
multifamily I wouldn’t necessarily
50:04
recommend building a complex initially
50:07
there’s a lot of drawbacks to dealing
50:10
with contractors I got into multifamily
50:12
because I got tired of dealing with
50:13
contractors and so that’s a little word
50:15
of warning all right next question what
50:25
is the best way to connect and add value
50:26
to a broker I guess to a broker I mean
50:31
easy to find them online call them go
50:34
grab lunch tossa and get to know them
50:36
right and don’t waste their time is the
50:37
big thing
50:38
show them that you’re serious they send
50:40
you something right I had last week at a
50:44
broker call me on Linda’s saying here’s
50:46
a deal that I have for you to take a
50:47
look at the deal that you might like
50:49
it’s a little more expensive than you
50:50
usually buy but it’s a great area great
50:52
deal and you know the next day I called
50:55
him I’m like hey I know you said it was
50:56
time bombed here we took a look at it
50:58
we’re about you know X amount off on the
51:00
price if you that works for you let us
51:02
in it
51:06
first I think you cut out yeah I don’t
51:10
hear you anymore
51:12
hey you’re muted next question has
51:19
anyone done a deal using owner financing
51:23
if so how was your experience I’ve done
51:26
it several times I love it I want it all
51:28
the time doesn’t always happen and it’s
51:31
gonna be a good experience if you
51:32
negotiate it right it’s all about coming
51:34
to a meeting of the minds it’s all about
51:36
creating a win-win you have to listen to
51:37
them and figure out what they’re looking
51:39
for and how you can help facilitate that
51:41
one and if you can do it and create a
51:44
winning for your saw a win for your side
51:47
go for it it’s easy money or easily
51:52
finance money hey pal you there yep I’m
52:01
still here all right well let me see I
52:07
think we’re about done I mean unless you
52:09
guys got any more questions but I think
52:10
we’re about done here because we want to
52:12
make sure that we respect everybody’s
52:13
time and want to end on time so any last
52:17
words from you guys I just you know
52:20
Garrison first any last words from you
52:22
guys think purses chicken Mike I guess
52:29
she’s checked off yeah you got anything
52:31
before I wrap it up no no I just super
52:34
grateful to everybody to be here you
52:35
know this is only our second time doing
52:37
this and we’re good we’re gonna grow
52:38
this out we’re certainly gonna you know
52:41
we’re gonna put a lot of effort into
52:42
this and make it make sure that we’re
52:44
gonna bring the value to every single
52:46
month doing this so super happy that
52:48
everybody’s afford this you know thanks
52:51
everyone for coming
52:52
much appreciated one more time link in
52:56
the comments we have an awesome Facebook
52:58
group where we add tons of value if you
53:00
have questions that did not get answered
53:02
feel free to answer them there we have a
53:04
lot of people running meetups across
53:06
essentially a lot of those individuals
53:07
own thousand-plus apartment have years
53:10
and years and years of experience
53:11
lending such as ant farm he’s probably
53:14
the smartest guy in the room everywhere
53:15
we go get in the facebook group add
53:18
value ask questions second thing
53:20
multi-family masters live every third
53:23
Monday of the month
53:24
third thing YouTube channel
53:26
hit the subscribe button link is in the
53:29
comments and most importantly if you are
53:32
interested in running a meet-up reach
53:34
out to someone one of us on this call
53:37
myself eros or pow
53:39
if you’re all about really gaining
53:41
exposure in this business and becoming a
53:43
professional a meet-up isn’t easy
53:46
I’m not gonna say easy easy but it’s an
53:48
easy way to accomplish that and that’s
53:50
why we came up with multi family masters
53:52
our goal is to see everybody win and we
53:55
have everyone around us from beginning
53:57
to end with that being said we’re gonna
54:00
call it a night
54:01
thank you so much for the 70 people who
54:03
timed in tonight we will see you next
54:05
month we’re out all right guys Oh
54:12
garrison yep did you take a picture ah
54:17
I did not feel Portland epic I can you
54:20
grab it real quick I can’t I don’t gotta
54:22
figure out how to do this cuz I’m on my
54:24
laptop I’m not on my normal computer
54:25
here Barriss you got it I think Faris
54:30
got it okay awesome man cool awesome
54:33
often see you guys thank you so much
54:36
let’s win let’s crush it multifamily
54:39
masters calm