For those of you who don't know, here's part 1 of how I started, lost everything and then acquired over 1,000 apartment units.

https://www.biggerpockets.com/forums/55/topics/690349-from-bankruptcy-to-1-000-units-part-1-thru-the-dark-tunnel

I've since "traded up" from "F" areas. First time I traded up from "F" to "C" areas I was surprised that the tenants actually called you to let you know they will be a few days late on the rent! I thought I went to heaven :D

Below are a few lessons I learned along my journey from investing in the "ghettos" to hotel investing. My hope is that this will encourage newbies and for those of you who are more experienced, this will expand the possibilities of what you can achieve.

So, here we go:

Lesson #1: Have a VISION BOARD: what your mind can conceive and believe, it can achieve

You want to become a real estate millionaire? or billionaire? or you simply want to acquire cashflow producing rental properties? Have a vision board. It works. I made one in 2003 and at that time I was broke. I put down on my vision board that I own apartment buildings, hotels, houses, etc. even though I was living back at my parents' home. I also wrote a check to myself for $1 Million.

Almost everything I put on my vision board became a reality, including being able to cash that $1 Million check.

Lesson #2: It's all in the DEAL: so become a master at finding good deals

I realized that the money is in FINDING good deals. The better you become at finding good deals, the higher the chances that you will succeed. Finding good deals is not just a matter of calculating the numbers. Anyone can do that. However, you need to dig a little bit deeper and find the value in a property that others might have overlooked. Here's a deal that others viewed as a bad deal - it has low occupancy and it's in an D area. And yet, in 60 days, I got the building 100% occupied and sold it 6 years later for over a $1 MILLION profit.

https://www.biggerpockets.com/forums/311/topics/644570-how-i-made-over-1-million-on-1-deal-after-6-years-of-headaches

Lesson #3: Know-WHO is CRITICAL to Success: what you know is important but WHO you know is MORE important

The people you hang out with is very crucial. Hang out with those who are broke and you will remain broke. When I lost everything, I hanged out with people who were wealthier than me. I networked like a mad man. And I spoke to everyone who has some interest in real estate or has work related to real estate. Through networking, I met my future business partner, Nate - who is a whole lot better than me at construction and rehab management. Here's his story:

https://www.biggerpockets.com/forums/12/topics/748332-using-real-estate-investing-to-help-people

Also, I would never be able to buy a hotel without my private investors, specially my investors from China. How did I meet them? Yup - you guessed it right: through networking. Here are the details:

https://www.biggerpockets.com/forums/432/topics/738518-how-to-raise-private-capital-experience-with-chinese-investors

When I first tried to go into hotels, one of the obstacles I encountered was financing. I acquired over 1,000 apartment units with a multi million dollar net worth so I thought I could qualify for a loan to buy a hotel, right? Wrong. The lender asked me who is my hotel operator-manager is and when I answered "Me", they turned me down. I couldn't believe it.

So, I solved it by...NETWORKING: I found a hotel operator who has over 5,000 hotel keys under management. This hotel operator has never lost a hotel even through the Great Recession. I partnered with them. And I am so glad I did.

I went back to the lender and they approved my loan. With hotels, the typical loan is 65% LTV. However, with the strength of the hotel operator backing me, combined with my & my partners' net worth, and how great the deal is, the lender gave me a 75% LTV!

That hotel operator I partnered with is the one doing most of the work and I am so happy with them. In fact, they've already increased the occupancy and we have not even started the PIP (Property Improvement Plan) yet.

Here's the drone video of the hotel (it's in Columbus - a Marriott Courtyard):
https://youtu.be/MepaNmcrnzk

My Advice, if you want to succeed is the third option...

I've been approached by some people here on BP and been asked for advice on what they can do to "break into" apartment investing. I told them there are 3 ways to do it:

1. You can do it yourself and do it the long & hard way (and have a low chance of success)

2. You can pay someone to teach you how to do it & coach you - I don't recommend this because you will be out $10K-$20K paying a coach and you still have to do all the work yourself and you still don't have access to all the resources you need to succeed

3. You partner with one who has done what you want to do. It's easier to qualify for financing and easier to raise private capital. Chances of success is way higher because you can leverage on the experience and expertise of other people - just like what I did leveraging on the experienced hotel operator I partnered with. Of course you have to provide value so you can get experienced investors to joint venture with you. Here are some lessons on Joint Ventures:

https://www.biggerpockets.com/forums/432/topics/744841-joint-venture-and-how-to-buy-more-apartments-actual-experience

If someone who was broke and only knew about buying dirt cheap properties in the ghettos...can own a hotel - anyone can do it too!

The bottomline is this:

You have to believe you can do it, focus on finding good deals and network your way to achieving your dreams!

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From Buying C/D Class to Buying A Hotel (with drone video)

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