This might come as a surprise to you, but you don't need five to 10 years of single-family house investing experience to get started with apartment buildings. In fact, you can get started without any experience in real estate or otherwise at all.
But how do you do this? How do you get brokers and investors to take you seriously?
That's what I want to cover in this video right now. I'm going to give you my instant credibility script that rapidly commands the respect of any broker or investor you talk to. It literally unlocks access to off-market deals, which just so happens to be the Holy grail of finding deals in this kind of environment.
Stick around and check out the video below to find out more about the instant credibility script!
Where I Went Wrong
When I got started with multifamily investing back in 2007, I was in Texas at the time – that's where I was looking for deals. I would call a broker and say, “Hey Mr. Broker – I'm a real estate investor and I'm looking for apartment buildings to purchase. Are there any listings you have that you send over to me?
They always told me the same thing. They said, “That's great Michael, send over your proof of funds and I'll send you what I have.”
I was stumped because I didn't have any proof of funds. All my money was in the restaurants and they were losing money at the time. So I was stuck. I didn't know what to do. It's basically the broker's polite way of saying, “Get lost. You know you're a newbie and you're wasting my time.”
I didn't discover until much later that that is where I was making various different mistakes.
Even when I mentioned to them I had done single-family house investing, we had flipped 36 houses at the time. They would still say things like, “That's, that's great Michael, but how many multifamily deals have you done?”
I was really stuck and I finally, over time, developed a script that basically works almost a hundred percent of the time. It's my instant credibility script and I want to share that with you guys!
The Perfect Broker Script
I'm gonna tell you exactly why it works. Here’s the script: “Hey Mr. Broker – I work with a group of high net worth individuals. I'd like to expand into the Atlanta market. We already have property management company X, Y, Z on board and are continuing to build our team locally. We're looking for deals in a one to two and a half million dollar range with a least an eight cap one, let's say a six cap in this environment. We’d consider light to medium renovations but no repositions. Is there anything you have in your pipeline that you can send me over to review?”
Now, let’s look at what we’ve done here – Let's, let's analyze a script a little bit.
Let's Break it Down
Number one, you're using insider words like cap rate and repositioned. You wouldn't be using this language if you didn't know what you're talking about.
To the broker, that means you probably educated yourself. Maybe you took the Ultimate Apartment Investing Guide or you sign up for mentoring. There are lots of different resources available to you to do this.
Number two, in the script, you address the money part because you're telling the broker that you're working with a group of high net worth individuals.
Number three, you're addressing the experience part in several different ways. First, that you’re expanding, whether it’s from zero or 10 units, doesn't really matter. You're expanding. And second, though more importantly, you've developed your team.
Depending on who your team is you may be talking about a property management company, company X, Y, Z, which if you play your cards right – the broker already knows.
So now they're saying, “Oh my gosh, I know property manager, company XYZ, that's great. They're great guys. We've done a bunch of deals together!” Now they're talking about your team and not about you.
This obviously implies that you follow our other rule, important: to start building your team before we start calling brokers.
Once I started using this script, I was no longer asked for proof of funds. In fact, that didn't just work for me. It has worked for a bunch of other people.
Proven Success Rate
For example, Jake Volin, a 21-year-old air force cadet, no money, a student. No prior experience. He educated himself and in fact, he took our course, Ultimate Apartment Investing Guide. With that education, he somehow magically he got a broker to take them seriously enough to be invited in the best and final on an $11 million deal in Kansas City!
That's staggering – right? And all because he followed the script. In order to use a script confidently, you have to educate yourself and you have to build your team. Once you have that, no one's going to ask you about your lack of experience because of the words you’ll use confidently and the team that you've built on the backside.
That really is the secret to gaining instant credibility with brokers AND how you can get started with apartment buildings without five to 10 years of single-family house investing experience.
Super powerful – I hope you guys feel the same and find that useful. I’ll catch you next time!
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