First time acquisition

[Elvon Bowman]

Hi everyone,

I'm a new real estate investor, and over the past 8 months, I've immersed myself in learning about CRE. I'm reaching out to you, the seasoned investors, for guidance as I work toward making my first acquisition.

So far, I've analyzed over 100 deals to assess their viability and profitability, and I understand the law of percentages in CRE. From my research, I know that for every 100 deals I analyze, I'll likely send out 10 LOIs, and one of those will eventually get accepted. Although I haven't received an acceptance yet, I've been actively sending out LOIs to property owners.

I'm aiming high with my first acquisition because I've heard many investors wish they had gone larger at the start. I'm particularly interested in properties with 100+ units. My most recent LOI was for a 168-unit property, and I'm also working on LOIs for properties with 200+ units.

I’ve had conversations with brokers and, in some cases, even the sellers directly. All the videos I’ve watched and the books I’ve read have helped me expand my mindset and approach. While I haven’t closed on a deal yet, I’m confident this process is completely learnable. It’s just a matter of diving in and taking the steps.

That said, I have a couple of questions:

1. 1. Do you think aiming for larger properties (100-200+ units) on my first deal is too ambitious? Or is it a reasonable approach given I have an experienced PM on my team ready to look things over, plus the knowledge of what I have learned from other investors?
2. 2. If I push my offer and resume over to a seller, would they consider my LOI even if it's my first acquisition and my net worth/POF (proof of funds) hasn't been provided? I've addressed this by stating that I'll provide POF within X days of getting the property under contract. I understand that as long as I have the deal, I'll be able to source the funds from financial institutions, private money investors, and the liquid amount I have to meet all financial obligations.

Looking forward to hearing your thoughts and advice!

Elvon