How To Close More Deals By Partnering

[Gino Barbaro]

We just closed our second deal in the past 30 days, and for me, my portfolio or success, would not have been possible without an amazing partner.

The reason for my post is that I've learned that real estate, especially multifamily, is a team sport. I often say I had life before Jake & life after Jake. The investing life before Jake was difficult, lonely, stressful, overwhelming at times. I had no one to rely on or to ask for advice. I also lacked the accountability to do what needed to be done.

How do you find your Jake? My mentor calls it Values Based Decision Making. Your values need to align with your partner. Jake & I both love our families, adopt a responsibility mindset, have a long term focus, and only want to focus on multifamily. We both have not gotten caught up with the shiny object syndrome. And we both work extremely hard for each other, and make no excuses.

When you are vetting a partner, ask yourself What value am I going to bring to this partnership? Am I going to work extremely hard and adopt a growth mindset? Can I have a beer with my partner (you do actually need to like your partner. I speak to Jake multiple times a day, and our families get together often).

As most of you know, land lording and investing can be lonely and difficult, filled with days of despair. Having a partner and getting a different perspective has been so valuable for my journey.

If you've had some difficult partnerships, be honest with yourself? Did you bear some of the blame?  I know in my failures, every time i failed it was because of not having a values alignment. Don't let your past failures hold you back from looking at future opportunities. 

I was the I'ma guy before Jake. I'ma do this, I'ma do that. I'ma was getting burned out, and I started hating real estate.

Here's the deal:

67 Units, $12.2 million, 2019 vintage, mix of SFH & Duplexes.

We bought this deal from the same seller who sold us a 62 unit last month. He built an amazing product and was selling to recapitalize and use the funds for his on going projects. 

I hope this helps anyone looking to either get into or scale their real estate business.

Giino

[Arn Cenedella]

@Gino Barbaro

Excellent info.

Folks may be familiar with the terms “visionary” and “integrator”.

MF teams need both.

The visionary is full of ideas, has a high level of vision where he or she wants the business to go, maybe sometime loses track of the practical nuts and bolts, and is perhaps not very detailed oriented.

The integrator makes it all work. Systems, processes, efficient, organized, steady, handles all the details.

Another model is:

1. The Hunter - finds the deals, networks with brokers, risk tolerant

2. The Hammer - gets the job done, runs the asset, PM, and AM

3. The Mind - the analyst, the underwriter, financial and accounting

4. The Money - raises the capital

All four skill sets are required. Rarely does one person have all these skills.

On my team: I’m the Hunter, Brian is the Hammer, Dan is the Mind and we all bring capital.

Put these skill sets together, and your MF investing journey will start to soar.