How do protect myself in a multi-family deal?

[Hayden Wright]

I have recently come across a 212 unit apartment complex in Houston. I’ve spoken briefly with the owner and he is considering selling the property. 212 units might be too big of a deal for me to do by myself at this moment, so I am seeking an investor who is able to do this deal in exchange for equity in the property and the opportunity to shadow them and learn from the process. How do I lock up a large deal like this so I can safely pitch it to other investors without them going over my head and snaking it from me?

Thank you in advance!

[Greg Dickerson]

Originally posted by @Hayden Wright:

I have recently come across a 212 unit apartment complex in Houston. I’ve spoken briefly with the owner and he is considering selling the property. 212 units might be too big of a deal for me to do by myself at this moment, so I am seeking an investor who is able to do this deal in exchange for equity in the property and the opportunity to shadow them and learn from the process. How do I lock up a large deal like this so I can safely pitch it to other investors without them going over my head and snaking it from me?

Thank you in advance!

First step is to get a number from the seller and all the pertinent information to support it. The key is the deal itself. The better the deal the better position you are to negotiate with a sponsor. Once you gather the info you can then put together a NDNC and start contacting investors. Make sure to disclose up front what you are looking for. Some may be willing to carve some equity as a funders fee others may only offer a fee.