All Forum Posts by: Millon Blackshear

Quote from @Millon Blackshear:

Quote from @Caleb Brown:

... If Grant Cardone can build a real estate empire with a bag of magic beans and some pocket lint...... 

I agree with your attitude about this--"I understand it may not be possible but I'm not interested in that reality, I'm interested in the one where there is a way."

But Grant Cardone started out with the required down payments and required net worth to buy the apartments he wanted.

He made a bundle of money doing his "Thing" and then started buying real estate.

It takes money to make money.

If you can get a piece of this deal--great....if not work on becoming what and who you need to be to get deals like this--and keep on moving forward.

Good Luck!

@Millon Blackshear

Hi Millon,

There’s not enough here for me to make an informed decision.

I can send an input sheet. If you populate and send it back to me, I’ll send a full analysis back to you to help you figure out how the deal works and if it is doable on your end.

You will definitely need some skin in the game to make this deal happen, no matter how creative you get.  With that being said, I would not be particularly excited about a 6.4 cap on a 100 unit multifamily, even with a large amount of capital improvements already completed...

It is good to think big though, there is nothing wrong with that.  I have always said that the problem is not with people hitting their goals, it is with people not setting large enough goals in the first place.

Kudos to you for thinking big!  

@Millon Blackshear

This is a dangerous deal if you do not already have a lender network. The best bet to make this deal happen and still take part of it is to find someone with experience and tag along. Either move the deal over to them, ask to shadow or have a small stake.

When you start getting into deals of this size, you need to think about payroll and fulltime managers. There are a few more moving parts than a 8 to 10 unit deal. The Lender will need your resume AND your Property Manager most often times.

@Millon Blackshear where did you find the deal? Was it on market? MLS? It is highly unlikely that someone that is new to the business will stumble on a deal this size that hasn't already been passed over by a lot of local buyers. That is the dirty little secret in the multifamily space. All of the larger deals are brokered, and generally are brokered well. In my opinion, there is more opportunity in smaller deals for them to be mis marketed or distressed.

If you want to jump into commercial RE investing, I would start a little smaller. Maybe partner up and buy a 6 or 8 unit building. These can be very lucrative, and they help you answer a lot of the questions you had (who lends on these, how do you get experience, etc). 

I don't think you'd be able to tackle it. BUT you can find a buyer and get a commission or negotiate instead of your commission you get a % of the rent and when you sell.