Apartment Complexes Investing (Invest In Multi-Family Homes )
Apartment Complexes Investing (Invest In Multi-Family Homes )
Today I’m going to be talking about apartment investing. So today’s chapter is about something that’s very famous right now which is apartment complex investing, multi home investing. Now I have this little saying at the dojo that says that if you’re new to real estate investing, and you’re thinking about buying apartment complexes, then you’ve been sold, someone sold you on the dream. Why do I say this? Well if you haven’t been to the gym and today was your first day to the gym and you’re going to do squats, you wouldn’t go in there, you haven’t been to a gym let’s say five years, ten years and get on the squat machine, not that little machine with extra bar; and put up ten 45s on one side and another ten 45s on one side and do a squat, you wouldn’t do it. I’m going to blow my back with three years of renewal, 15 years but they have an option to renew it, in this case they may not want to renew it.
Now, if you want to do an investing in apartment complexes, I’m not saying you shouldn’t do it, I’m saying learn the foundation of the business first; you need to have a lot of money, you need to have a lot of experience because you’re putting all your money into one egg basket, that’s it; you’re putting everything you got into this one ship, if this catches on fire everything you guys out, the economy goes somewhere and the banks wants to call the loan in and you got refinance and there’s not enough equity because the market’s gone, everything is gone. So those are some of the important things you have to talk about, and you’re not just signing up for a $100,000 loan or $200,000 loan, you’re signing up for fourteen million whatever. Now some people say it’s cheaper to fix a roofer a hundred unit versus one; I absolutely agree with that, I agree with them on that. But if you have 50 houses, if you have 200 houses and you a relationship with that contractor, so it’s kind of like the exact thing; that guy is going to do that one same thing, the materials might be a little bit more because everyone’s different, and it’s going to be a little bit higher price, I agree; but there’s a lot of advantages that this doesn’t have. For example, if there’s a flood and I have a bunch of apartment complexes, I mean homes and there’s a flood and 25% of them gets messed up, well I still have my 75. But there’s other apartment complex that have 200 units on it, and there’s a flood, all it goes, sure I have insurance but I mean, do you understand what I’m saying guys? You’re putting all your money into one basket.
So single residential is a great business even for the big guys, and in my opinion I think it’s a better way to do it, why I say it’s a better way to do it? Because you get to diversify so you’re not all in one area, so if some of this market crashes or this section crashes, you don’t get the effects; if your property gets burned down, not all of your property gets burned out, or flood same thing that all your properties getting out, and if you have multiple units in a specific area, you’re able to control the rents in that specific area, so there’s a lot of benefit; and with the homes, you’re able to get a lot of owner financing, you’re able to get a lot of non-recourse loan. Most people don’t know what the non-recourse is, so when I say it they go “whatever”. But a non-recourse means that you don’t have to personally sign a personally note, which means that if you default, the bank is not going to come hurt your credit, they’re not going to come after you for the deficiencies, let me repeat that one more time guys, this is so important; with individual direct owners, I can set-up non-recourse loans all day long; with stinky banker that has to give me $100,000 I can’t do that, I got to shop around to find one out of a million, that’s what a non-recourse loan. Do you see why other guys around here are talking about how great apartment complex is? Because they understand what I understand and they’re trying to syndicate money to get a bunch of people to give 10, 100, 150, so they could go tackle down this big one. But the guys that brought the money in, they’re only getting crumbs, or the guy that created the syndication, he’s becoming the champ; and I’m not blaming the guy, that’s the way it should be because the guys are bringing the little crumbs don’t have the sophistication that the guy syndicating the money. But that’s what I’m trying to tell you, you should get into single residential home so you can develop your foundation, so you could be eventually the one syndicating the money, does that makes sense? I hope you understand what I’m saying because by you doing that, you could get non-recourse loan, you could have majority of the deal with no money of your own, and you could have all the deal with no risk of your own, have other people’s money.
There are a lot of benefits of owning apartment complexes and there are a lot of benefits owning single residential homes, there are cons with owning apartment complexes and there are cons with owning single residential homes; but you’re a fool if you’re new, you haven’t done a deal or you’re in business in just two years and just got a couple of deals and you think you’re ready to buy an apartment complex. And you probably did it, I’m not saying that they’re not going to give it to you; that’s the thing, they’re going to give it to you but you’re going to get hooked when the market goes crash down and they want their money, they’re not going to keep financing you and no one’s lending because your property just gone down millions of dollars because you bought it in the very top. If you want to buy apartment complexes, this is not the time to do it; if you look around right now, rents are up all over America, majority of places, places I’ve gone to, from Dallas. Colorado, Boulder, Las Vegas, you’re building everywhere that I’ve gone to, maybe in you states are different, anywhere, but guess what? They are building single residential homes, they’re building apartment complexes, and there is already infrastructure, the old apartment complexes; and when the market crashes which will, what do you think is going to happen with these apartment complexes, the one that’s being built, being sold to the rich people, for one bedroom they want six hundred thousand; what do you think is going to happen to that, what do you think is going to happen to all these apartment buildings, what do you think is going to happen with all the B and C? That’s the time to start into getting apartment complexes, now is the worst time to buy, all the big money wants to buy apartment complexes, all the big money, they’re buying houses. What was that guy that invests in the stocks? They bought a brokerage firm in Dallas, Brookshire? I’m very confident they probably buy real estate that’s why they bought the brokerage firm, because as an investor, I created my own brokerage firm because I want to pay all the commissions, I want to know all the information, so that guy’s same exact way.
Apartment complexes is a great investment, single residence halls is a great investment; you have to understand where are you, what is your built, are you six foot ten or you’re just a four foot midget, because that will determine how much weight you could lift man, you got to be realistic with that. How much education do you have? And I don’t talk about this because I have a PhD or masters, no, business education. It’s a different story to be around people’s business but you’re not the one in the ring taking the punches, it’s not you risking your money, when you risk your money you have positive faith that it’s going to work out and instead of having this fear that what if it’s like this, if it’s not going to work, that’s not going to work. So what am I saying to you guys? Be smart enough, do your due diligence. In America you can become a millionaire selling corn out of little roaster for three bucks a cup and you have ten locations like the guy that used to buy corn for me in Dallas and Harry Hines, the bazaar, the guy hate English now ten locations in the head, all these people working for him just one location six or seven people, they making a lot of money. And then you can have people start moving company, make up a lot of money and you can go all the way down to apartment complex. So the grass is so green, the question is what do you want and where you are good at and what are you willing to sacrifice and what are you willing to risk, because risking an apartment complex, you’re risking everything into one boat, into one basket; where if you are doing single residential homes, you have more opportunities to f*ck up and not matter because it is smaller, every punch hurts but it will not be the knockout punch; where if you go apartment complex and market crashes, you have no experience, you just invest a hundred million dollars, 50 million dollars, you only have a job before, you never been an entrepreneur before.
And also last thin guys, if you look around right now, everyone is talking about real estate guys, everyone; Facebook, Tweeter, this guy, this guy, all these guys are talking about real estate, everywhere you look through TV, Radio, everyone, people that never been a realtor run into realtors, there were realtors before that lost their jobs and became secretary are going back becoming realtors, anyone; so it’s not too hard to do deals now, the banks are lending, here’s the money. You hear the radio, TV; you “got no money now? We can lend you credit, we got you”. They’re all getting drunk right now, off their booze, but it is coming the crash is coming, and guess what? It’s going to be a party for me and anybody that’s been listening to me, because we’re going to go out there and pick up deals for barely nothing, they’re going to let me take over the payments because the news told them the stock is crashing, they lost their money, the taxi guy, everything; they’re going to say how horrible it is and they will just give me the property, how do I know because I was there in 2007 fourth quarter, I made a lot of money at that time, when everybody is running this way, I went in and for just a dollar, I could tie up property, 10 bucks, I could just buy a house, just taking over their payments, there’s situation that people will give me money to take over their payments, I don’t have to give any money, they’ll pay for the closing, there’s all kinds of stuff and even today, even in good economy; look on Facebook, look on YouTube, so many are doing deals, so if you’re new and you haven’t done a deal, this is the perfect time everyone can do deals.
Here’s the thing, you should get in here right now and practice and this is just practice, you should even worry about how much money you make because the real money is coming when the crash comes. The last crash, I didn’t know anything about real estate, I was an entrepreneur, my parents are refugees, my dad sells ice cream in an ice cream truck, my mom is illiterate, I didn’t know anything about real estate but I made a lot of money, I put a thousand dollar down and three thousand dollars down there, now I made a hundred about properties you just step in the people’s shoes man, but this time I know better; that’s why I’m traveling America, so I can warn the area so when the crash comes, now become a land lord nationwide, over the areas that I want. I only invest in single residential homes, not apartment complexes, when the crash comes; I am not going to get into the commercial part. I don’t know if guys remember 2007 fourth quarter, the commercial sector got beat up even more than the residential sector but it wasn’t on the news. I was just in Denver and even though Denver commercial, real estate has doubled in the last ten years, right where I was superior right between Boulder and Denver and many places that I went to like West Minister and even Aurora; there are lots of commercial buildings that were not being rented out, they were empty, even the residential properties had doubled. Some of these places like the one right across the Starbucks, it was a big commercial building that you know, there was like Starbucks was in and some other ones, but the majority they said has been baking for like six or seven years and then we’re going to do is tear that place down like a mall, they were going to tear it down and build apartment complexes which basically supports what I’m saying, in that one area, in that five, six months that were in Denver checking out the area, then how many apartment complexes do they start building, I lost my rival like one there, one there, they’re going to tear them all down, they’re just building them, and so when the crash comes, half way built and there are so many others being built inside of Denver, everywhere you go in Denver they were building apartment complex as high as hell, it’s going to be a big opportunity to make money for everybody.
Don’t take no for an answer, couple other things, if you want to learn how to do real estate deal, or if you want to make a deal in your first 59 days, if you tire out searching online, reading forms, buying books, I’m going to step up and build the community with you guys and I want to hold your hand and help you do a deal, I got 11 intern positions open, I want to work direct with you, you got to invest 325 bucks in my mother course, that has the foundation of the business; we talked about owner financing, options, lease options, note creations, fix and flips, land lording, I mean the whole aspect, about cold calling, basically I’m showing you what you need to do to go find a motivated seller so you could come back to me and I can help you get that first deal and I don’t want any of your money, of you check, just to shout out that Mike helped me, that’s it. So we got 11 spots open, if you haven’t done a deal, I highly recommend to stop from video blogging to video blog, from forms to forms and Facebook like all these guys that sells funnels; I’m the only one that’s going to step up because I know I can help you get where you’re trying to go to and it’s going to help me where I’m trying to go to, and I will work for free; I’ve been doing this for three years, got over 500 videos on YouTube.
So if you haven’t done a deal and you want to do your first deal, get in my intern program, commit to the 325 to get your education foundation, there are over a hundred and seventy one chapters that talks about sales, negotiation, cold calling, websites, set up your websites, how to do Facebook marketing, everything you need to get your foot on the ground to run. It’s like buying a franchise and then you’re going to get the support you need to get your check, only if you’re willing to send me a shout out with a picture of your check; I don’t want your check, I don’t want the half of it or a quarter of it, one percent, I don’t want any of it, that’s your money. I’m willing to do it for free for you, because the more people I help, the better place I’m going to go to and it makes me feel really good, that’s the whole reason why I started this channel guys, whenever I feel better I like to help out people, it makes me feel better. So if you want to do a deal, I’m going to waive my $25,000, invest into the mother course, get on my website, myrealestatedojo.com, type in the mother course, retail is 1,500 I’m letting you have t for 325 because I’m going to get you your check, just look at the reviews, we just launched it, it’s been like two weeks, three weeks the reviews are coming in, it’s going to take a while because this is 171 chapters, over a hundred of hours of advance training, not only that I showed you all that stuff plus I have a bonus book that I give you where to find these people, where do I find these people so you can go find them so I can help you get your check, and then I also have an action plan for you to get your first one to three deals is 59 days. This is the same exact plan values, my students that pay me 25 and they got deals, if you go to my YouTube channel, I mean on my website, click on the proof section and listen to their stories, I won’t let you down, commit, don’t let yourself down; not because the grass is green right now.
I think this is the worst time to get into real estate right now, but it’s so easy to do deals because everybody and their mama want to get into this business, that’s why it’s easy. That’s not what I’m telling you to get into this, I am saying get into this, get into the punching, get your cardio up because when the crash comes it’s going to be a gold mine, you’re able to get deals from nothing, you’re going to have people that give you money to take over their payments if you know how to negotiate; if you only have the experience, the next crash is going to give you a lot of money, and that’s what I’m here for; I’m not here to buy properties right now, I’ll take a couple but I’m building my stamina when the crash comes. And if you don’t think the crash is coming, and then you’re a fool, you’re a fool, anybody tells you this now is the fool, and they’re trying to sell you something. I’m ready for the crash because I’m not selling, I’m here to buy, why is the crash coming? Let me remind you guys one more time, real estate is all time high, stocks all-time high, bonds all-time high, bit coins all-time high, interest all-time low, the petrodollars, you don’t know what petrodollars is? Take my YouTube channel, check my website the petrodollars getting cut down by China and Russia and they’re creating their own world currency and it’s backed by gold, not the Fiat dollar which Americans based on, so you guys know none of these stuff because they don’t show it on TV on CNN and NBC, but I’m telling you it’s coming, and since we are the world currency, the petrodollar, all these other countries were like this, all of them; euros, rupees, all of them they’re like these and it’s like a domino effect, one of these falls all of them are going to fall, why? Because they are tied in to the US dollar which is the petrodollar, what is the petrodollar mean? It means that any world currency. This is what makes America so powerful, any world currency that wants to buy oil or gas, it doesn’t matter; you have to use US and that’s because the OPEC and the America have some kind of deal, that’s why we give them all these guns and all these stuff, Saudi Arabia they’re the boss of the OPEC, the gang leader and we have a deal with them that anyone in the world that wants to buy oil, they have to use the US dollar, so what is that mean? That all these countries have to buy the US dollars to settle their oil because every country in the world needs, the only commodity the world needs. Here’s the thing guys, in India one ounce is exactly the same price of one ounce of gold here, so one ounce of gold in America is the same exact price of ounce there, but one dollar of America is 50 times more powerful than 1 rupee. That’s what the Federal Reserve has done, that’s why we have such a good life in America, we’re slaving these all other people because 1 dollar is 50 times more powerful, but here is the thing, there’s a price for that we’re the world currency and I should say some Fiat and our companies and the people and the government is in debt up the ass and the same thing for all the other countries that are sitting like this Germany, France, you can go there and it’s like a civil war; we’re going broke, Greece, all these countries and their money is based on these money; and the petrodollar is going to be wiped out very soon and we’re going to war. Because Russia and China, they have their own oil currency that they created but it’s backed by gold, so that means that if you want to buy gas on them, you just pay them up their money currency and you can take their money and go get gold with it. You don’t have to just take their currency and take it to your bank, you can trade it for gold, because they were gold, world gold; one ounce of gold in America has the same exact price in Russia, in India, in Iran, it doesn’t matter. The only thing that’s different is the paper dollar, the Fiat dollar. Now why I am explaining this stuff for you? Because the crash is coming guys, and you can see it’s not going to be just the local crash, it has the potential to be a worldwide crash. That’s why I started buying gold, what is it, December last year? And when the crash comes, not only my gold there will be more but it’s going to be subject to heaven, it’s going to be owner financing heaven, it’s going to be creative financing heaven, people are going to be motivated, they lost all their 401ks, their homes, they have all these debt, credit card companies, the banks are getting tight with their lending, apartment complex are being built left and right; and guess what? It’s going to be burning, and if you’re willing to run in the fire like I did, you’re going to make some money, and that’s why you need to get my mother course because I’ll show you everything about this business, because I want to help you to buy some of your deals today but more importantly when the crash comes. So this still exactly what I use for my business and I’m willing to help the next 11 people get your first check totally for free, I’ll waive my $25,000, you get to keep 100% of your assignment fee for your money, whatever it is you got; five grand, you got three grand, you got 30 grand you keep it man, God bless you, now you feed a homeless person in my name, in my daughter’s name, in Soraya’s name, In my dog’s name. You keep it and give me a photo, that’s it. If you’re willing to do that, we can make this thing happen