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