A few months ago, I began learning about and got more involved in apartment investing. I wrote about the steps I took to make industry contacts while building credibility. Fast forward to now and my work is definitely paying off. In many ways, the results I was looking for are coming to fruition but there are also other results, that I did not expect, that are appearing as well.
Some results I expected from my efforts were credibility, partnerships, maybe a mentor, an actual deal, financing and much more that will definitely come with patience and more work. At the beginning I thought credibility was going to the hardest part but it was not. Because I had done my homework and took the time to learn this niche, the people who I spoke with respected the dedication. Another surprise was that all my single family investing actually carried some credibility of its’ own into the apartment investment crowd. From many articles, podcasts, videos, etc. I was led to believe that the multifamily crowd looked down on the single family residential (SFR) investors but it simply was/is not true. In fact, while SFR investing is not a prerequisite, there are many ex- SFR investors who invest in multifamily. These are the people that relate to my current situation and have been eager to provide information and guidance. These relationships have grown into discussions around partnerships and potential financing. While I have still not identified an official mentor I am treating all the assistance I am receiving from multiple investors as a mentorship. This also gives me the opportunity to discuss one aspect of apartment investing with multiple investors so I can then try and decipher which information is best for me and/or which information I personally want to apply. While I have not actually found a multifamily deal that I personally like, I have underwritten many properties. Just like SFR investing, it’s a numbers game.
One result I was not looking for but definitely glad it came was the brokering of commercial real estate. Throughout my SFR investment career I have made it a point to always profit from a lead an associate or I generate. The most common situation is one where the seller owes more on the property than it is worth, due to the condition of the property. Usually in these instances I cannot purchase the home outright, fix it and turn around and resell it to an owner occupant buyer. When this happens I offer to list the property for the seller as their broker. I take the time to consult the seller on what they can do to maximize their profit and pay off the mortgage. Sometimes all they need is time, man power and if the seller can afford it some paint. It becomes a win-win all around. While marketing for apartments I was so focused on finding an investment I did not even consider the brokerage side. While I have never brokered a commercial real estate transaction I knew I could easily find an experienced broker who would gladly assist me for a small percentage of the commission. Fast forward to today and I have three commercial real estate listing representation agreements signed. I am preparing the market packages to take them to market before the end of the week. I am now taking commercial real estate listings and have partnered with a commercial real estate director of a fast growing brokerage to teach me what I need to know to take these properties to the closing table. This was not a result I was looking for, nor expecting, but a very good and profitable result nonetheless.
One can plan and plan and plan but no matter how much planning you do nothing is going to happen if that is all you do. Once you have a plan, even if it is not complete, it is time to do and begin executing on that plan. No matter how much you plan, life will always happen and you will need to change plans or adapt to the current situation. I have learned that planning followed by immediate execution and adapting as you go will often get you to where you want faster than sticking to a strict plan. Make sure the planning and doing includes win-win situations and you will have many people to assist you along the way. Go out there and DO!!!