All Forum Posts by: Brian Adams

I bought a 1,000 unit apartment complex and raised $40 million in a month from my private investors.

I get asked this question a lot: How Long Does it Take to Raise Private Money?

Once I understood how to raise private money from investors my real estate business completely changed.

The length of time it takes to raise private money can vary depending on a number of factors such as the size of the property, the amount of private money needed, the complexity of the transaction, the quality of your offering documents, the number of potential investors you have in your network, etc. 

In general, raising private money can take anywhere from a few weeks to several months to years.

If you are well prepared and have a clear and compelling pitch, it may take less time to secure funding. On the other hand, if you have a complex deal it may take longer to find willing investors.

It is important to note that building a network of potential investors takes time. If you don't have a network it can take longer to raise the funds. As you create more relationships and build more trust with your investors over time, it may become easier to raise private money in the future.

It's also worth noting that raising private money, like anything, is not a one-time event but a continuous process. 

One thing I learned early on: ABM (Always Be Marketing)

ABM for private money when you don't need it. 

The worst feeling is working on a deal and realizing you don't have the funds to close and someone else swoops in and takes your deal.

@Account Closed when estimating rehab costs, there are a few steps you can take to accurately determine the cost of renovations for a property:

Create a detailed renovation plan: Make a list of all the renovations you plan to do, including any new appliances, fixtures, finishes, and any structural work that needs to be done.

Get estimates from contractors: Once you have a detailed renovation plan, you can get estimates from contractors to see how much each item on your list will cost. Be sure to get estimates from at least three contractors to ensure you are getting a fair price.

Account for contingencies: It's always a good idea to set aside some extra money for unexpected expenses that may come up during the renovation process. A good rule of thumb is to set aside 10-20% of your renovation budget for contingencies. 

Research the cost of materials: You can research the cost of materials online or by visiting a local home improvement store. This will give you an idea of how much you should expect to pay for items like paint, flooring, and fixtures.

Don't forget about the cost of permits: Depending on the scope of your renovations, you may need to obtain building permits from your local municipality. Be sure to factor in the cost of these permits when calculating the total cost of your renovations.

By following these steps, you can get a good idea of the cost of your renovations and make sure you are not overpaying for a property or making a good deal bad.

There isn't much money spent before the property is "locked-up", and I assume you mean before the Purchase and Sales Agreement (PSA) is signed and being under contract.

You will incur travel expenses if the asset isn't close to you. You will have attorney costs to draft the PSA. 

And if the deal falls through, Yes these costs are wasted. 

@Taylor L. I just tried to go to ChatGPT and the website is down...for my curiosity are you still able access the site?

@Taylor L. I just watched the video...WOW and thank you for sharing.

@Marc Warren I am so excited!!

The market has definitely changed and some investors are scared to make moves. The shift has cleared the way for real buyers like myself to acquire assets at discounts. I have $100 million in equity ready to deploy on the right deal at the right price.

The tide has gone out and exposed those who may have overpaid recently. I believe this creates an opportunity to buy deals and my company is targeting $250 million in deal flow in 2023.

As a former CPA, I know how to underwrite conservatively and I know my numbers. 

Last year I bought a 1,000 unit in Atlanta, GA and the deal is going great.

@Robert Kelly there are many syndicators like myself on BP. 

Last year I syndicated a 1,000 unit apartment complex and bought and sold 5,300 units valued at over $300 million.

Feel free to send me a message.

@Chris Anderson a lender usually only underwrites an LP investor if they own a certain percentage of the LP units. I have closed deals where the lender asked if any LP owned more than 20% of the LP units. My last raise was $40 million and I didn't have one investor exceed the 20% threshold.

@Kevin Waymire I have bought and sold 5,300 units.

What specifically are you wanting to know?

@James Nix generally, a commercial real estate broker is the best source for larger assets.

However, I have bought several deals using direct mail and this process is definitely a long game. I bought a 1,000 unit deal using a combo of direct mail, emails, and calling the seller. It took me 2 years, but I was persistent as I knew there was a good deal to be had.

I sourced the asset using Yardi Matrix which has the owner's contact information. When the property is in an LLC, you have to skip trace to get to the actual owner.

@Scott Crowley thank you!!