All Forum Posts by: Bruce Petersen

That's it, you have to put in the time and learn your craft.  Patience and diligence is what it takes.

If you are impatient you are more likely to make bad or reckless decisions.

Start small and work on your presence in your market, it's not going to happen over night.

I agree with what @Bryan Hancock said about investors but I will assume you already have that covered, if not none of the rest of it matters.

Think about due diligence inspections.   There are companies that do it for you or you could "GC" the trades that come out individually to inspect the different systems.  I would also want to figure how I was going to look at the units themselves.

100k in my neck of the woods probably wouldn't get you into MF, remembering that MF is only 5 units or more.

I would look for 80 LTV debt and don't put down too much as it will start effecting your return and it's harder to scale quickly (but not recklessly).

Rule-of-thumb, again in my area, are roughly $200-300 in free cash flow per unit and if you were able to get a 5 unit then you would likely receive in the area of $1000-1500 per month.

Hope this helps and I thought my corporate job would kill me as well so I understand where you are.

Please consult an attorney and not just google. 

Just try to think of anything that might help your case.  In a previous life I was a stockbroker so that helped some on my first deal.  I had no actual experience in anything real estate related but had owned a couple companies and had a track record in business and leading large teams.

If you have any leadership background that would not hurt.

Also, don't be high maintenance if you do get the deal as it will hurt your reputation in the relatively small industry.  You don't have to "win" the deal it just has to work for you, let them think that they won if the deal still works, it will serve you well in the future.

This is common; he will want to know your experience and background.  He is potentially going to pull his property off the market for you and wants to make sure you are someone to take seriously as the last thing a seller wants is to loose up to 30 days to someone that doesn't have the experience/stomach for the deal and that you're not just a tire kicker.

You will have earnest money up (typically 1%) but you can still bale on him within your feasibility (due diligence) period and get all back less independent consideration.

He's trying to vet you before contract.

@Joe Fairless, close on #1 is on or around 5/5

Hey @Joe Fairless, exactly the same approach for me in working on 418 units 1/4 mile from each other in Texas.  

As you said the economies of scale allow me to make a much more competitive offer on them both.  Have the first one under contract and waiting to hear on property #2.

Just trying my damndest to be Joe Fairless some day. :-)  You, Sir, are quite inspiring!

I'm from Texas but most "big time" investors won't need your help.  I know you're trying to offer value in return for knowledge and that's great but most of the larger guys don't need or have time for this type of arrangement.  

I would start buy trying to connect directly with someone and offer to buy them lunch and work on developing a relationship first. 

I would not be real happy with having someone I know giving you the hook up with me.  Do some homework on this site and make your own connections, you'll likely have much better luck this way. 

Just my opinion. 

My though has always been, if you can't afford proper legal, don't do the deal.  If it's so thin that 1% kills it, is it really a good deal?

Just my opinion.