I have to admit I was scared.
I took a deep breath as I signed the check request for $75,000. If we didn’t get the $3,075,000 we needed to purchase this 77-unit building plus the $500,000 to renovate it, we would lose the $75,000 earnest money.
We had never bought an apartment building before. Up to this date, the largest thing we’d ever managed was a duplex. I looked at my husband. He seemed a little pale. I’m sure I did too. I took his hand in mine. “Let’s do this,” I said.
A week later we put in an offer for another building – 51 units, selling for $1,800,000.
Three months later, we sat toasting at an elegant restaurant in Albuquerque on the day we closed escrow and became the owners. That week we bought two buildings in Albuquerque – 128 units total. We raised over $2.2 million dollars from private investors and got bank loans totaling...
Do you ever think "I'd love to invest in real estate, but I just don't have the money yet?" Well, it's possible you are actually sitting on tens or hundreds of thousands of dollars available for investing and you don't even know it!
That's how I was - I was pretty blown away when I found this out.
When my husband and I went to a real estate conference - the Real Estate Guys' Secrets of Successful Syndication seminar, we first learned that we had way more access to cash than we thought about - via our retirement accounts.
Most people have IRAs or 401k's in plans offered through their employers or through one of the bigger financial institutions - Fidelity, Ameritrade, Charles Schwab, etc. In these accounts is a set of options of what you can invest in - generally a somewhat limited menu of mutual funds and bonds.
I remember being very annoyed at one point because I wanted to put the bulk of my money in a low-fee...
For better or for worse, your success in real estate will be determined by who you know. Real Estate is a relationship business. Who you know and who you are working with can make all the difference in what deals you get and how much money you have access to.
You need relationships with great service providers (agents/brokers, lenders, property managers, CPAs, contractors, attorneys, etc.) and with great potential partners (deal and investment partners). Without these right relationships you either:
(a) can’t get a good cash flowing property deal at all (especially in a competitive market), or
(b) you can’t run it well if/when you do acquire it.
A lot of people think that’s not fair. It’s true, it’s not fair. Fair or not, that’s the way it is.
There is something you can do about it though…
You absolutely can get yourself some of those right relationships!
So how do you do that?...
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