Feb 4, 2020
Listen up. By sharing all my mistakes, success, and failures, there are enough clues to pick up on that provide a clear path for you.
There are three things that you should pay attention to when it comes to deals in a competitive market. You need to have a performance clause in your contracts, make sure management company codes your CapEx correctly, and be conservative with underwriting.
Topics on Today’s Episode:
- Strong Competition: Multifamily market is filled with people trying to find apartment deals and making stupid offers/money
- Performance Clause: Avoid feeling frustrated when contract goes bad by including clause to cancel contract or get your money back
- Seller’s Coma: People put stuff under contract and ownership group or management company check out
- Power of No: Believe in yourself, your offers, and what you’re doing; don’t be afraid to walk away
- CapEx: Buy things in bulk and make them part of your improvement plan; code correctly for refi and capital improvements—things that make property better
- Good, Clean Business: Expect what we expect, inspect what we expect
- Slow Down Speedy: Underwriting shouldn’t hurt; be patient and conservative
- Mentors and Masterminds: Give you direction, guidance, and vision
Links and Resources Mentioned:
- Fannie Mae
- Freddie Mac
- CMBS Loan
- A2 Management
- 019: The Nuts and Bolts of Putting a Deal Together (Underwriting Guidelines)
- Mastermind Group
- Copy Your Way to Success
- Kahuna Investments
- Multifamily Legacy Podcast on YouTube
- Multifamily Legacy Podcast on Facebook
Quotes:
“There’s lots of people out there trying to find apartment deals, and they’re making offers that are stupid.”
“Things can go south badly, if people are not paying attention. Most people, they’re not. They don’t care about you. They’re only thinking about themselves.”
“The hardest thing you’ll say is, ‘No,’ to yourself.”
“Our jobs as owners is to make sure we push our management companies and expect what we expect, inspect what we expect.”
Don’t forget to download my Free Workshop Quickstart Video Series, and if you like what you have heard please leave a review on iTunes.
Text the word MONEY to 408-500-1127 to get my free private money program and credibility kit for single family.