All Forum Posts by: Brian Adams

@Bryant Johnson yes most definitely you can do a cashout of the investors.

However, most investors want to share in the equity upside, so if they get cashed out they may only do one deal with you. 

The most important thing is to have your investor documents really clear on your strategy of the cash out so the investor is not surprised in the end.

@Justin Goodin when sending out direct mail, make sure your letter or postcard has a strong headline, an attention grabber such as why should the reader care to read your letter, what is in it for them. 

Also, your headline and copy must be congruent and drive the reader to take an action step. Like you said above in number 5, you need a CTA (call to action) for the reader to do something next.

@Gabe Goudreau, I have traveled down this path already and I can share some quick things that I went through, you can check out my background on this thread: I quit my CPA Job to buy Large Apartment Buildings

From my experience and since this is your first deal, the arrangement you shared of 50/50 or 60/40 would definitely be rare.

You will probably need a loan sponsor and you need this person more than they need you. Someone with experience, liquidity, net worth, etc. to get the deal done.

Be prepared as the loan sponsor will want a piece or most of your deal.

I did struggle with this at first, like why it wouldn't be a 50/50 split since I found the deal and putting it all together. I realized though that a piece of a deal is way better than zero or no deal.

For me, getting a piece of the deal, I was able to leverage and turn that into building my track record and credibility.

So much so that years later I just bought a 1,000 unit deal.

To find equity partners, you must ABM - (Always be Marketing) and BP is a great place to locate and also friends, business associates, CPA, attorney, dentist, doctor.

And for a loan sponsor, also BP is a good place to ABM.

Good luck!!

@Ben Kappel as a general rule on larger deals (100+ units), most deals are sold "as-is". It is up to you and not the realtor to appropriately account for your capex budget for changing out the yellow appliances. 

Now, if the asset has a serious structural issue or if you discovered a significant number of down units not disclosed by the seller, then a retrade on price is appropriate.

@Deano Vulcano what type of assets are you wanting to target and are you targeting several geographical locations at once or just one with your marketing budget?

I have bought large multifamily deals using direct mail, although the process to close does take longer.

@Wesley B Williams I use Yardi Matrix to locate the names of owners and properties.

I recently bought a 1,000 unit deal using a direct mail strategy. DM does work although it took me 2 years to get the deal closed...

@Jack Rozema I just bought a 1,000 unit deal and I run my deals with a pref return and a projected IRR to the investor.

(Feel free to message me for percentages as I’m not sure if BP would deem that I’m marketing in this forum).

@Jack Rozema I suggest you backup a step...the value of Multifamily is not determined by properly taxes.

Before you make a presentation to investors make sure you understand how to determine value by taking the NOI divided by local area cap rate.

@Anderson Bigate Nogueira I recently bought a 1,000 unit deal and utilized Infusionsoft (Keap) to help me automate the investor experience.  

When I first started managing investor relationships, I went from Excel to Contact Contact to Aweber to Keap. 

I have been a BP member since 2009 and I remember all the challenges I had when I first started my real estate business.

What I did - I got really clear on my WHY or purpose and took massive action to buy and sell 5,300 units valued at over $300 million. 

You can learn more about my journey here at this link: I quit my CPA Job to buy Large Apartment Buildings

I WILL GET RIGHT TO IT...If you are struggling right now in growing your real estate business, I provide consulting services to a select number of investors who will put the hard work in to get to the next level.

Message me to learn more

Brian Adams