What happens in deals? There’s usually some bumps along the way. They don’t go perfectly, but they usually go on to close.

This is the first of a three-part series where I break down the details of what happened with my University Crossings deal. I share what went wrong, what went right, and how I overcame obstacles that are often part of multifamily transactions.

Topics on Today’s Episode:

How to find a deal? Broker relationships
What to Look For: Numbers, stable cash-flowing properties that need little work
Set a Goal: Increase occupancy or/and raise rents
Manage costs when spending money; seek higher than average maintenance
Use Residential Utility Billback System (RUBS) to its full potential
Reduce office admin costs to save significant money
Underwriting: Key to finding good deals is that you must be willing to do the work
Site Visit: What surrounds the property? Who’s in the area? Is there much crime?
Rookie investors make mistake of submitting offer before setting foot on property
90% of the game is to get brokers to know, like, and trust you
Occupancy rates help determine financing options
Do a CapEx budget (rehab money) per door
Win bid by stacking/leveraging deals and submitting Letter of Intent (LOI) packet
Ask broker for pricing guidance to get invited to “Best and Final” round
Identify seller’s hot buttons: Price, surity of close, etc.; call broker to get the price you need to use to be competitive and win the deal
Avoid agreements via email and seller’s purchase and sales contract; get them to sign your LOI to confirm that they agree to everything in your language
My Challenge to You: Be in pursuit of both time and money via commercial and multifamily real estate; cash flow is the new sexy

Links and Resources Mentioned:

Quotes:

“Underwriting: The key to finding good deals is you have to kiss a lot of frogs. You just got to be willing to do the work.” Corey Peterson

“We go to the property, and we do a site visit. Things can go from good to bad quickly.” Corey Peterson

“They’re not willing to go visit the dirt. You have to be really willing to visit the dirt...before you actually make an offer.” Corey Peterson

“90% of the game is to get brokers to know, like, and trust you, and to be a part of your team.” Corey Peterson

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.

Lessons in Leadership | Erin Brockovich