MB 090: 4 Routes To Retirement With Multifamily – Michael Blank
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If 2018 is YOUR year, the year you plan to do your first multifamily deal and get on the road to retirement, then the next step is to determine the route you will take to get there. There are four different roles you can play in a general partnership: syndicator, passive investor, balance sheet guarantor, or money raiser.
Today I’m getting into the nitty gritty of each of those four paths to financial freedom, exploring what’s important to each member of the team and how to get started. I begin with syndication, discussing the importance of analyzing deals, meeting with investors and building a team. If you want to be in the driver’s seat, then the role of the syndicator may be perfect for you. I go on to cover passive investing, outlining how to ask the right questions and find a partner you can trust. If you see yourself as more of a passenger on this road trip to retirement, then passive investing might be the part you play in a general partnership.
Another lesser-known role is that of the balance sheet guarantor, who cosigns the loan for another syndicator. I explain the circumstances under which a balance sheet guarantor is necessary and the benefits of signing on to a deal in this way. The fourth role is that of the money raiser, and I wrap with the networking skills necessary to take on this role. Listen in and learn the significance of getting educated in the multifamily space, building a working relationship with trustworthy partners, and getting on the road to retirement with apartment building investing!
Key Takeaways
What’s important to becoming a SYNDICATOR
- Learning to analyze deals
- Constantly raising money
How to get started as a SYNDICATOR
- Educate yourself with free content, invest in education
- Analyze deals, meet with investors and build your team
- Consider coaching (accelerate results, avoid mistakes)
- Avoid overwhelm by doing ‘next three things’
What’s important to becoming a PASSIVE INVESTOR
- Learn right questions to ask
- Find partner you can trust
- Transparency, integrity and communication
- Look at track record, team
How to get started as a PASSIVE INVESTOR
- Educate yourself enough to ask right questions, call BS
- Network at events like REIA, meetups or Financial Freedom Summit
- Find one or two partners, invest in multiple deals
What’s important to becoming a BALANCE SHEET GUARANTOR
- Required by lender when net worth of partners not > loan balance
- Willing to cosign loan for syndicator
- Risk exposure low, compensation varies
- Can receive 5-15% of general partnership
Who are ideal MONEY RAISERS
- Have capital themselves, ability to attract more
- Prefer networking to cold-calling brokers, analyzing deals
What’s important to becoming a MONEY RAISER
- Access to capital
- Finding trustworthy partner
How to get started as a MONEY RAISER
- Educate yourself enough to answer questions
- Start raising money TODAY
Resources
Sample Deal Package
The Deal Maker Blueprint Training & Certification
Financial Freedom Summit
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
