Accountant · Dallas, TX · Member since 2017 · 27 posts · 7 votes
A lot of people say that if you find a great deal, the money will follow. On today's podcast (#307) Chad Doty said that's not necessarily the case. He said you have to also "be the person" that people would want to give money to. He said becoming that person is the first step to being successful in commercial multifamily.
So, here's my question: What do you think it means to become that person? A track record of successful deals is extremely helpful, obviously, but what would you work on if you had no deals under your belt? I'm asking this in the context of CRE investing, specifically.
Rental Property Investor · Charlottesville, VA · Member since 2012 · 1k+ posts · 726 votes
7y
@Christopher Christian I would look at a few things. One, do they have other experience with real estate? Have they done single family rentals, smaller multis? A lot of people will say you are wasting your time on smaller real estate but I think it's a great way to learn before you get into commercial properties and especially before you take investor capital. Plenty of successful multifamily syndicators started with smaller properties to learn the ropes.
Two, are they working with someone who is already experienced in MF syndication? I think if you wanted to skip the advice in one above, joining one of the mentoring groups is probably the way to go. If you aren't 'the person' partner with someone who is.
Three what other relevant experience do you have? I think someone who is a commercial broker, lender, property manager already could make a strong case that they are 'the person'. If not, you could work in one of those areas for a few years with the intent to become a sponsor/investor.
1) people need to feel comfortable with you. Hence you need to have pre-existing long term relationships with them prior to them deciding to give you money.
2) once you have the relationship established people/investors would also want to see your track record to prove your credibility.