The 3 year plan to a multi-family purchase

The 3 year plan to a multi-family purchase

A few days ago I was browsing biggerpockets reading every shred of information that I could find on structuring large multi-family deals (with much more left to read) in my search results were also questions from other members that were in the same position as me looking for guidance. So I figured, why not introduce myself, and let them know what my basic plan is, and maybe we can motivate, and collaborate along the way to a purchase. Sounds good to me, what about you?

So the purpose with this blog post is to outline the basic skeleton of what I intend on doing over the next three years. This is by no means exhaustive, and my simplicity will make it seem like I feel this task I am undertaking is easy. Rest assured, I have no illusion of anything being easy. It is going to take loads of hard work, research, patience, discipline, networking, learning….and much more. This is essentially going to be the largest thing I have done in my life to this point….But I am not scared, I am not nervous, I welcome what is about to come. My motivation and focus is so on point that I know nothing will stop me. Just like everything else I have accomplished, when I get this feeling inside that I cannot be stopped I will do whatever it takes to accomplish my goal. If you have never felt this type of feeling, it is really hard to put into words. It’s like a switch flips inside and nothing less than success is an option.

Over the years this energy had become unfocused, it was there, but my need to try everything had it spread over a wide variety of businesses and projects. I got to a point in 2012 that I knew things had to change. Now after overcoming some adversity, and totally restructuring my life to support this one goal (two goals if I include fitness), I am here writing this blog post.

YEAR ONE:

Year one is starting now, and will consist of EDUCATION, RELATIONSHIPS, AND CREDIT. One of my strengths is to soak in an amazing amount of research on a daily basis, and then take action on it. I have done the same thing with the many different business, and personal projects I have worked on. I once told someone that I wish I had their ability to go out and randomly talk to strangers, and they told me they wished they had my ability to learn and take action. My credit goal is to get my score as close to 800 as possible. Then comes relationships, this is my weakness I have been working on. Over the years I have always preferred to go it alone, and rely completely on myself. I am resourceful, and I have always been able to get the job done (it’s a slow process), but in this instance, it will take a lot more than what I have at my disposal. From my study of those with success in commercial real estate, all place relationships in the highest priorities.

YEAR TWO:

While building on what I have established in year one, I will add raising my own personal capital to the mix (which I have actually started since 2012) I want to be able to bring at least 50-100k of my own funds to the table to show potential investors that I am confident in myself, and the investment property that I choose. This is no small task, and in reality I have already set wheels in motion to accomplish this goal. Year two is when I want to have it wrapped up.

YEAR THREE:

Year three is all about the purchase. By this time I should have established relationships, and identified investors with an interest in proceeding contingent on the property numbers I put on the table. I can now decide on a location, property, and size of the property.

I know this is a super skeleton plan. I intend to add the meat to the bones over the next three years, as I gain multi-family knowledge, but it gives me a direction to move forward, and to track my progress. I am taking the lessons I write about, learned from my single family experience, and implementing them on my clean slate of commercial real estate. I am investing my time in education, and relationships FIRST.

PATIENCE is paramount; you will not catch me browsing loopnet late at night, getting worked up over the first low priced, rundown 10 unit property I see... I am not even thinking about a property at this point. I want every move I make to be calculated, and strategic. I no longer leap before taking a look. I am DISCIPLINED… I am maintaining my focus on the goal, and I am cutting out every distraction, despite how pleasurable it may be. I evaluate every action I perform on a daily basis, and at the end of the day I decide on if it helped me move forward, and if I should cut it from my routine.

I am UNSTOPPABLE, by cutting out the negative influences in my life, and replacing them with positive, the positive energy inside has been compounding at an astounding rate, and it feels like a freight train that will smash through anything. (I know it’s a little dramatic, but it’s the best way to describe where I am at mentally) I welcome adversity, because I am confident in my ability to adapt, and be resourceful. (A good friend once told me that it seems I can make money appear out of thin air, what she doesn’t know is I have a passion for negotiation, and I would spend hours browsing craigslist purchasing low, and selling super high on items I acquired…she only saw me getting paid, but not the work that went into it)

I am humble enough to take advice or criticism from anyone. The harshest critiques will only make me stronger (provided it’s from a reliable source) I have friends who sometimes cannot take my feedback when they ask for it, not because I am mean, but because I am honest. I expect others to be honest with me; it’s how I grow as a person.

So for now I will wrap this up, if you enjoyed reading this post, please leave your feedback, advice, critiques in the comments section it’s much appreciated. I am also interested in networking with individuals who have a desire to purchase their first commercial property- LET’S MOTIVATE EACH OTHER- I will share all the knowledge I have with you, and will be writing blog posts on the knowledge I acquire in the future. If you are an experienced multi-family investor, commercial broker, or property manager within the Tucson Arizona area, and you have tasks you are too busy for, that relate to the purchase, financing, or management of a multi-family of any size, but feel I could handle them-LETS TALK- I want to help everyone in any way that I can in my pursuit of knowledge, and my first multi-family purchase.