All Forum Posts by: Chris Jackson

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $10,800,000

Cash invested: $4,600,000

174 Unit C class Town home apartment complex. Bringing our total to the market to 230 units. We were able to secure agency debt. Our plan is to upgrade the units, put new roofs on and replace the main water service lines

What made you interested in investing in this type of deal?

We are private investment company focused on multifamily.

How did you find this deal and how did you negotiate it?

Was off market and with another group that could not raise all the equity. We were able to raise the needed capital quickly.

How did you finance this deal?

Fannie Mae agency debt. 12 yr fixed at 4.93 and 3 years of I/O

How did you add value to the deal?

We will add value be renovating over 100 units in 2 years, replacing the roofs, and replacing the main line water service pipes from galvanized to PVC.

What was the outcome?

We are 2 months in as of 3/6/19

https://www.meetup.com/multifamily-apartment-investing-unveiled

DIVE INTO THE DETAILS!

For a long time multifamily apartment building investing was only available to those in the know. Now we lift the veil on all the tips and tricks to buying multifamily apartment complexes.

Granularity is the focus of this group for all things multifamily investing. If you are looking for the warm and fuzzy lightweight multifamily information, this group is not for you. If you crave details this group is like a fire-hose of information.

Group owners have over 500 unit transactions of experience and over 20 years of multifamily experience.

Detail topics over time will include:

• How to not paint yourself into corners during due diligence
• How insurance loss run reports can save time and money
• What you don't know about floods zones and effects on NOI
• New deferred maintenance concerns for C asset class
• Why you need two different capital budgets for your loan

And So Much More!

https://www.MultifamilyUnveiled.com

https://www.SharplineEquity.com

There are only 20 spots open. This for those investors who really want to dive into multifamily investing topics.

@Aiasia Powell - I am an introvert who has become he inner extrovert I always knew was there. 

Do NOT outsource the part of the business you need to develop. You need to get your confidence increased with negotiating and building rapport. The only way that is going to happen is by doing more of it. If you have the money to hire an acq manager you have the money to send out more mailers etc and practice your conversation skills with sellers. You can even try sending mailers or call FSBOs and say, Im not an agent I am a direct buyer and I am interested in your house for purchase. It doesnt even matter at first about time waste, even if he seller ha no intention of selling at a price that makes sense for wholesaling, you need to up your skills game, so you do that by actual doing it. Go on 10 meetings with FSBOs where there is basically a 1 in a 100 chance that they would sell their property for a number you need. But if you go there and say you need to see the property and chat with them, just get used to looking at a property and talking with the seller. You can even tell them hey this property is nice and I probably dont even want to throw out my offer as it will probably insult you as I am flipper etc. You will learn human conversation cadence and getting people to say things they normally would not, instead of just throwing out the lowball offer and expecting sellers to jump at it.

For the first few months I would just get used to talking to as many sellers as possible however possible that is within your budget for marketing

Good luck. Introverts develop rapport with people very genuinely 

Hi @Josh Thompson - start by getting confident in your subject matter. Pick an area of investing you really feel passionate about and begin chatting with people about it. Then start getting comfortable networking. This will take time. But thats the thing that most people don't say. For the introvert its not gonna be some magic pill and then you become Joe money raiser. Its not even going to work the way it works for extroverts, that can really get out there and meet 35 people in a night. You can get there in time but at first its about just layering confidence. Go to a REIA meeting and ask the organizer if they can point you to some people that are interested in the same style of investing you are. Then go over and say hello, Jim over there said you invest in XYZ and that is an interest of mine as well. Then start asking some genuine questions. Get the person's number and then a few days later or a week later when you are in your car give a call to that person and say "hey I saw this article about XYZ like we were talking about, Im in my car on a drive and I figured I'd reach out and say what up"

If you are not used to building relationships this is going to feel very weird. But in time you will learn to like that aspect of your new found extroversion. 

Once again this will take time. I know because I am an introvert and all the advice by extroverts only made me feel more pressure on myself and cause me to retreat because it was not working. Once I let myself have the amount of time needed to get better at it, things started to happen. I've now raised over 8M over the years so I know whats possible. I actually do not like be non social anymore. It makes me feel like I am returning to who I don't want to be. I seek out networking now and enjoy the interaction. I will never be the guy who is the most charismatic in the room. But I will be the guy who creates 3-10 very significant relationships in an evening because I care to understand the other person I am talking to. 

Good luck and dont give up

@Steve Hodgdon is right. Find a few meet ups and just go at first without any expectations. If you go in expecting to be johnny Hi how are ya, its not gonna work. 

Go with a very small goal at first at just meeting someone and exchanging contact info. Then build up over time.

I have two go to openers.    

1) Hi my name is Chris, what areas of investing are you interesting in?

2) (if someone is on their phone) Hi oh sorry if thats important I get it no worries. (cathes them off guard even though they were just trying to look busy 90% of the time, the other 10% the person will respect that you get it that they had to blast out a text or email right then)

then in the middle of your convo ask "how can I help?"

@Nephtalie Pierre - Online marketing needs to be a holistic approach where you have your base things all set and then start picking away and focusing on the various pillars.

I would start by working backwards. 

1) People do due diligence on you right away online. The first they want to get is warm and fuzzy feeling that you are a real person. So first have your FB account of yourself easily accessible , that doesnt mean open to the world but a professional FB profile with some info about you and for the pubic to go to your website to verify you are who you say you are and can find out more about you.   So that means create a website with your mission statement, bio, experience and any other credibility items to add to your bio. Also add a way for people to contact you

2) add analytics codes to your websites, FB and google analytics codes are a must. you can analyze traffic over time and determine what works and what doesnt. you dont have to spend a ton of time on this but it is nice to have some metrics to cross refence

3) Think about who your most important target customer is first, is it buyers, sellers and or investors.  focus your content and efforts on the most important one first. If its investors, just be careful I see alot of loose FB posts out there attracting investors. Know the best way to attract investors? know what the F you are talking about. Start posting on topics and add your thoughts to them. In time you will be a party and someone will say "hey tell me about East Bumble and why invest there"

4) its never ending, you need to be thinking about how you can add to your presence strategically. that takes time but you need to disciplined about adding content that is of value. 

Once you have the machine working you can start getting into FB ads, email marketing, google retargeting and all that. Just have a professional presence that is active and growing gradually 

Hope that helps. Its a big topic that wont be wrapped up in a bow unfortunately. Know why? Cuz if it was easy everyone would do it. :)

@Nephtalie Pierre  Thanks. No. In this business you need to learn pretty quickly that this is a marketing business. 

@Melanie Hartmann

Step 1) use the attention you are getting on this post and attending to by answering all these 300 comments in 7 days to your advantage ----> 

1A) Get your online presence up IMMEDIATELY and get your BP signature with a phone number and website and email address. even if you do not have have you website up get your domain up with a coming soon page that details out what you do.  

1B) Set up your facebook page for your company 

1C) On that website add tracking codes from google analytics and FB cookie tracking code so you can retarget all the traffic you would have gotten and will be getting once you set up your signature.  As people comment they will be clicking on your link learning to see who you are, doing basic due diligence on you and getting the cookies set so you can remarket to them. Once somebody goes to your site with an FB cookie you can set up an audience and market to that audience of those people that have come to your website or FB page.  

In the next 24 hours I would stop looking to comment on these posts and spend the time getting your signature up on BP and then begin commenting again. 

Use this attention to your advantage! Go get em :)

@Chris De Castro  I am definitely an introvert and have turned into it a strength. One does need to work on that introverted side in order to break through.

Some of the things I can recommend are :

- go to REIA meetings and get your talk on. get your network on. hone your skills in talking with strangers. ask questions, its the best networking tool out there. introverts cant stand talking about themselves so asking questions is a natural fit. introverts just dont like the stranger aspect so once you get past that piece the question part will be a natural fit.

- when I first started out I didn't realize it but I put too much pressure on myself. I would send out mailers, get responses from sellers be really nervous to talk to them and suck at the conversation. i was putting way too much pressure on myself to make the sale when in fact what I should have cared about first was just getting comfortable talking with the sellers first. If you have the cash I would send out a mailer and basically plan on sucking at talking to sellers and getting no sales lol. but you are paying for practice. that takes the pressure off and it helped me alot once i went into that mindset. the super sales bros out there would be like , what? thats crazy advice, think positive etc. I know what worked for me and now I can talk to sellers of a 5 Million dollar building no problem. it took me time to get there, not extra pressure and failure loops because I was not the ultimate sales person day 1. it took layering of confidence to get there

- use introversion as an advantage. when you connect with someone you will come across as very authentic (which we are) and you will make a real relationship. what we introverts have to bridge is the numbers game, which is important. you must talk to more people to get better at it and then the magic happens

good luck

@Alan Lambkin - I have been there. Been at this game for 10 years now. You said you have been dealing with Horrible property managers. If you have not moved onto another property manager then that's your first step. You must rip the bandaid off and go to another property manager before you do something else.

1) Your rents are about 3k potential a month so really a property manager at 10% is only going to make 300 a month max. here in lies the problem of small number of unit count and the reality of small unit property manager. however hope is not lost. Find a PM that has some other units in the area so they can add 300 bucks more a month to their revenue stream. If the PM does not have anything near then you may end up in the same place. Also if 300 a month , 10% is not something you can stomach then you should lean towards self management.

2) If you are getting bad tenants you may want to consider talking to the various agencies in the area like catholic charities etc. You will need to make your place nice though , meaning sec 8 inspection quality. Some landlords in this space try to get away with everything on the cheap (not saying that is you) but you can have success with govt agencies if you can deal with the brain damage of the inspections and paperwork, but it can provide more stability 

3) dont give up yet. take some deep breathes and get over some of that failure thoughts that are going through head. So many people in the real estate space run around peacocking and chest pounding talking about how amazing everything is and how amazing they are. They never talk about the head aches and trials they went through. This industry is filled with major ********. 

Use this experience as a learning lesson, try to figure it out. Go to REIA meetings in the area. Learn who the other owners are in the area. Call them. Ask them for advice. Find out who they use. Make friends with them. There are other owners in the area having success in that asset class and they may be able to help or at least provide you with connections to resources who can help. This business is about relationships, people and connections. Dont be shy and not call these owners. Some will be total A holes and others will be super cool dudes and dudettes who have been in your exact shoes and will provide some intel.

Limit the head looping and take action. You got this.