103: Raise $10 Million in One Week for Multifamily Investing

Jan 21, 2020

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Have you ever considered stepping away from your corporate cubicle and trying something different? Tired of working on the same product or different variations of it every year? Being an engineer can be boring. After all, it’s not rocket science.

Today’s guest is James Kandasamy, who worked as an engineer and spent 22 years in the corporate business world. He took a giant leap to try something different. James settled on real estate and started investing in single-family homes. He moved onto bigger and better deals in the multifamily space. Not only does James raise money, but asset-manages his properties.

Topics on Today’s Episode:

How much money needs to be raised per deal? $3-$4 million on average
What and Who You Know: How to get your foot in the door to raise money
Be Like Corey: True investors already know real estate and syndicators
Positive Track Record: Underwriting deals, defining and executing business plans, and communicating directly raises money and returning customers
Word-of-Mouth: People like to give money to those they’re referred to
Build Relationships: Tell people what you do; if they want to invest, you have an established relationship already
Unconventional Methods: Find deals with awesome prices by doing your own marketing and prospecting to direct sellers
Investment Portal Software: Not the Holy Grail for raising money
Value Add: Keep on adding free value through podcasts, content, and more
Corey and James: People you know, like, and trust; raising money is personal
Capital Raises to Raise Money: New people know capital raises, capital knows GPs/sponsors
Property Management: Hardest part of multifamily properties
Fear of Missing Out (FOMO): Social media exaggerates psychological optimism
Four Market Cycles: Recovery, Expansion, Hyper-supply, and Recession
Passive Investors: Learn how to select deals, sponsors, and markets; diversify; and what kind of cash to use
Best Tips: Be patient, only do good deals, and interact diligently with investors

Links and Resources Mentioned:

Quotes:

“You want to create a generation of wealth for ourselves, where we risk it ourselves, we do everything on our own, we use all our skills.” James Kandasamy

“Tell people that you're doing this, tell people the successes, and that’s how you raise your money in the beginning.” James Kandasamy

“When you got the money, you invest.” Corey Peterson

“Understand in property management, you don't make money. But it's not there to make money, it's there to control the product.” Corey Peterson

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