The Down And Dirty Truth About The "Home Run" Deals You See On BP

[Benjamin Riehle]

I recently read a post on BP about a multi-family investor who was building wealth and making great returns investing in multi-family apartment complexes (cannot find the post, but if I do I will share it in the comments). As I scrolled through the comment section I saw multiple posts about how the type of deal described was too good to be true. Reading these comments made me grimace as I thought of Henry Ford's quote, "Whether you think you can or whether you think you can't, you're right.” 

It is very hard for anyone who has not been involved in a "Home Run" deal to understand you can make $100,000, $1,000,000 or more in a real estate deal that takes "No Work". It is too good to be true. That deal does not exist. There is just no way you can make that kind of money... 

On the other hand, professional real estate investors who have been involved in "Home Run" deals realize they do exist. Our eyes have been opened and we realize that if we put ourselves in the right place at the right time those deals appear. The mentality of the investors who know "Home Run" deals exist is completely different compared to the person who has convinced themself "Home Run" deals are impossible. 

Additionally, investors who have experienced "Home Run" deals understand they are very few and far between. They realize the only way to experience them consistently is to perform a substantial amount of work, always putting themselves in a position to capitalize when opportunity presents itself. 

"Home Run" deals are very, very, rare . The difference is the individual who does not think they exist is not looking under every rock and in every crevice to find them, while the investors who know they are out there make sure to leave no stone unturned in their hunt for the next "Home Run". As a result the deals just seem to fall in the lap of the investor and appear too good to be true. What is not seen is the amount of work and the number of deals that fall through before the "Home Run" finally happens. 

So far this week, I have looked at an off market flip that on the surface has the potential to net $50,000-$60,000 in 3-4 months, a 96 unit complex that could easily produce $500,000-$750,000 after capital improvements and stabilization over a 8-9 month timeline and worked on structuring a one acre parking-lot acquisition in the heart of Downtown Tucson that has major development potential. I am not telling you this to brag, the reality is it is very unlikely for any of the deals to work out. The numbers and comps have to check out, the sellers have to sign the LOI, Title has to come back clear, the list goes on and on. The key, is that myself and investors who have had "Home Run" deals are willing to put in the work, follow-up with the prospects, make the extra call, send out one more mailing to have a shot at the next deal, all while the naysayers are claiming "that type of deal is impossible."

I am not saying it is easy, I am in no way saying it does not require a ridiculous amount of work, but I am saying it is possible. And hopefully for the few people that read this post, it helps one or two of them take that extra step in their hunt for the next "Home Run".

Good luck and happy hunting!