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
