Kris Krohn here with Limitless TV and today we are talking about how you
acquire multi-family homes without any money coming out of pocket.
Alright first thing to know about buying multifamily is that multifamily
is in a fairly elastic market. That means that it's not like a single-family home
where you're playing this game of trying to get a discount. Often with multifamily
if there's a discount it's because it's it's run-down you need to put some
investment into the property and bring its values back up or it's going to be a
matter of raising rents up to where they're supposed to be because sometimes
properties get mismanaged. Other than that, the other factor that people look
for a multi-family, its cash flow. That's what's fun right? It's like I have one
property, it's got thirty doors, and it means that there's a lot of cash flow
that can come out of it. And so these projects they're great to do. The only
drawback is that you move from and an amount of money that you can use to get
into single-family, when you get into multifamily
you often need to bring hundreds of thousands of dollars or maybe even
millions of dollars to the table depending on what you're looking at. And
so if you're watching this video saying, but Kris I got the money. Awesome then
what I'm going to recommend you do is focus on finding a property that is
selling for less because frankly it needs a half a million cash infusion
it needs an overhaul, it needs to, or and more important it's finding a
property that's been mismanaged on its rents. Well each doors running at 625 and
it should be 800. Okay, you can add hundreds of thousands or millions of
dollars depending on the size to the value just by buying something as
artificially low rents or need some fix-up. So look for a project like that
because what it can mean is you buy it you go through a rehab period throughout
the course of the year and then when it comes time to reevaluate it you can add
extraordinary amounts of value to the property. Or if you're just looking at
holding something long-term and it's a cash flow play hey these are out there
go find your commercial Realtors and those specialize in these properties and
look for the best price. You may not get a very big discount if it's fixed up and
if it's already functioning at its regular market cap rates then you can go
in and get yourself some real estate going. If on the other hand you want
multifamily and you don't have money, how are you going to pull that off? partners.
Partners make the world go round. I use partners in everything that I do I've
got so much expertise in finding deals I always have deals.
We're talking about a market right now where there is no inventory in my backyard and
yet I got deals coming out of my ears. Why? Well because I invest in the very
best places around the country. Getting into multifamily the thing for you to be
focusing on is finding partners and I want to share with you one tactic that I
that I've used to find partners that I've been able to do very successfully
this is a very very modern cutting-edge strategy. I think you're going to enjoy
it.
Three things you need to attract a
partner and do a multi-family home without any money. The first thing that
you need to do is you have to find the people with money so the first step is
to be able to generate a list. Now in today's modern world, how do you find a
whole group of people that have money? I'm going to show with you an
extraordinarily simple way. What I want you to do is I want you to set a goal of
building your Facebook friends up to 5,000.
Now I know some you're going to have to adjust your mental privacy settings on
well I only want my Facebook friends to be those people that I've met in real
life where I want the high school with or I know personally. You know what? then
start a different page all right? Start a Facebook page where you can get yourself
up to 5,000 friends but not not just anybody I want real friends. You know
where you find real friends today? you're looking for people that live around the
country or in your local area that have common interests. So for example, we're
talking about real estate gets what common interests we're trying to share
with people? real estate. So if you were to go to Facebook and just do a search
for the area that you live in and real estate investors club, real estate
investors, real estate support group, you're going to find all these different
people and if you asked to join those groups then you can get inside and start
adding all these people as friends. Be my friend, be my friend, be my friend, be my
friend be my friend, I don't know you other than you like real estate. What
this will do over time give it some time over a few months you can add thousands
of friends to your Facebook page that share real estate investing in common
with you. Then with this first step of how to generate this hot list of people
with money that could be good buyers and partners is once you have the people on
Facebook you got to know how to communicate with them. How do you do that?
I'll make sure, make sure you're doing at least 5 posts a week. Post about your
family, post about the things that you're learning in life, posts about some of the
things that are funny. Do high interaction pose
you know where people ask questions get a gazillion comments from people and
then once a week or twice a month, drop a post about real estate. Just found a
smokin new deal my team really came through on this one looking for a
partner with substantial funds if you have money sitting in for away, 401k, IRA,
home equity, or you've got money to invest then personal message me. Well you
right now I got 5,000 friends on Facebook so guess what? If I make that
post I'm going to get hundreds of people saying, I'm in, what's the deal, let's play.
And you know what? now I've got number one of my three. I got my list of hot
buyers. Okay the second thing that you're going to need to do is call these people.
When you contact them, what I want you to do is take the deal and start
communicating high-level what it is. What are the numbers? what are the returns?
what are the equity? what are the financial needs? An investor will take
someone serious more than just as a serious deal is a serious person. A
serious person, they want to deal with someone that has the answers to
questions so work with me, work with my team, learn from these videos, have a
local mentor in the whatever dealer you're working on make sure you can
articulate what it is because your partner is going to have questions. So
list, call, and then the third and final one is, you gotta package the deal. And
packaging the deal means you've run your coms, you've done your analysis, you've
got historical rents on the property. It pretty much means that you've looked at
the property from every angle and if you look at a typical typical property
package it always starts with a summary. The summary is who am I,
what is the deal, what is the strategy, how long we going to hold it, how much
money we need, what are we going to do with it, what kind of returns we would
expect. And then that, if that's the summary then rest of the documents are
just the support of saying, hey here's the proof, here's the research, here's the
comparable market analysis, here's the historic reds, here's the repair bids.
When you put all that package together well I've just shown you how you can get
a list of very serious buyers with money, I've shown you this basics of how to
have a conversation and how to package the deal. Those are three things that are
going to aid you on your journey of how to do a multi-family deal
with someone you don't know with no money out of pocket.
Looks like you got
your work cut out for you. You got these opportunities to take this
knowledge and information and go out there because people are waiting to help
come together with you and make these deals happen. Friends, thanks for taking
your time to be with us today hope you've enjoyed this video. Make sure you
subscribe and if you really want to jump in real estate at a deeper level then
come out to my 3 day mindset event where we are going to talk shop on
money and real estate. Help you figure out what your next more
aggressive steps look like when we start mentoring you and pulling all the deals
in and helping you become successful in real estate