What Happens When You Bring the Capital to the Table

After beating our head against the wall for around 12 months we realized that these brokers really want to see a track record where they can give you these off-market or low market deals. We're working with Corey Peterson for a couple of deals and one day he said to us, "you know what guys? The money's not in the deal. The money's in the mind". We know how to raise money, we've done a lot of fix and flips. Corey then followed with "why don't you go and find a little bit of money and then go and bring that money to a deal and then for an equity stake you can bring money to a deal". I thought about that and I find that interesting because it helps build our portfolio out of the gate.

I've done the self-storage complex which is stabilized. That'll be a $30 million asset. We also did a student housing complex with Koori out in Iowa, a 294 bed, that's a $13 million purchase. So we've done $35 million worth of deals in the last six months just because we knew how to raise a little bit of capital. What I find most interesting is that more people don't teach about this because typically you'd go and join these mastermind groups or you'd go to these events and they cost money to learn, and that's reasonable because it should. Because we have the ability to bring the capital, or we're getting paid to learn, we're partnering with these sponsors that each has a thousand units under management or better or 75 to $100 million under management or better.

They've been through the pain points, they've gone through their management, they've gone through their personnel problems, they've gone through their asset problems, they have systems and processes in place. They will take us under their wing and walk through the entire process because we were able to bring the capital to the table. Now we get paid to them. Eventually, we'll probably do some of our own deals, but it's been a huge blessing on the front end, not have to deal with the headaches and the learning curve that I think the first person through the gate usually does. Basically we've become the capital company. I feel like that is going to let us go further faster and we get to be a little bit more picky with the assets that come to us because we're vetting sponsors and we're vetting deals and if they don't fit the box that we want them to fit into, it's okay to say no. And what I've found is that once you say you have some money, deals fall out of the sky, they chase you down. I was chasing deals down for a long time, our whole team was and they just weren't coming to fruition. But now we have some money and everything is right.

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