My curiosity in real estate investing started in the summer of 2020. A friend of mine and also my nephew introduced me to the concept of wholesaling real estate which is essentially ‘selling without a license’. After researching it, I discovered it is legal in most states, but there are some specific guidelines you must follow. However, wholesaling is a great skill to learn and foundation to have regardless of which type of real estate investing you choose to do, because the best deals (most profitability) are often found off-market meaning the property is not advertised because you go direct to owner before they do any public promotions.
The thing about wholesaling…
In theory it seemed simple, find a distressed owner and/or property, negotiate a below market price, find a fix & flipper, developer, or end cash buyer and sell it to them (leaving a little money for them to make a profit after updating it) and you keep the difference. But actually doing the thing, wellll, that’s another story! Finding the properties, homeowners, and figuring out how to contact them – that all costs money then you cold-call for hours to people who are solicited 24/7 with many others trying to do the same.
Other paths in real estate investing (that do not require getting a license)….
I decided instead to work with my brother Adam (who has similar intensity and business acumen & experience to me) to learn and explore other paths in real estate investing. We started reading and learning about different real estate investment strategies. Aside from wholesaling we researched fire damage wholesaling; fix and flips; creative financing (taking over someone’s past due or existing mortgage); short-term rental arbitrage (leasing an apartment or home to use as an airbnb/vrbo property); and mobile home fix & flips.
But reality is, after learning about all these options, the end game for us was ALWAYS going to be multifamily and/or commercial investing. We were going to do this once we had more [experience, education, money, properties….fill in the blank].
My Introduction to Multifamily…
That was until….we joined the Facebook group My First Million in Multifamily. We started seeing all these people who were sharing their acquisitions of these large scale multifamily properties, 50 doors, 100 doors, 300 doors or larger. And most of these people were 20 and 30 something’s no less! We started wondering how on earth are they doing this???
A few of them mentioned the Deal Room. So Adam joined the Deal Room (paid mastermind group) end of June 2021 to do some investigating and he invited me to come a month later. I joined the last week of July 2021. At $247 month it was the least expensive group we found in the multifamily space.
What is the Deal Room?
It’s a paid online mastermind group on Facebook for those who want to start or grow their multifamily portfolio.
Joining the Deal Room you will gain access to SEC Lawyers, Lenders, Passive Investors, Loan Guarantors, and other people across the states looking to partner on acquiring and managing multifamily properties. They also provide support for analyzing and underwriting deals. And they have a branded course that as of this writing* you can get for free when you commit to join for 12 months.
(*Limited time offer that is subject to change at any time).
My experience in the Deal Room…
To my surprise, acquiring multifamily and commercial properties was NOTHING at all like my brother and I had thought or imagined. And nor was it as overwhelming or complicated as many of the branded real estate gurus made it seem. Granted it is a somewhat sophisticated way that the acquisition is done (from finding the deal to analyzing & funding it), when you partner with seasoned operators to acquire and manage the acquisition, it makes it a lot more approachable. The premise behind these acquisitions is a concept called ‘Syndication’. This is when you build a team of people and everyone brings something different to the partnership/LLC – resources, financial, skills, and/or experience and you all work together to acquire, improve, and manage the property.
After joining the group and taking their course, I understood the concept right away. I was paired on an accountability team for 8 weeks. This provided an immersive experience with other seasoned operators to learn how a deal was put together.
My Results (Not Typical :-))…
On August 21, 2021, just 31 days after joining the Deal Room, my brother and I closed our first deal, a mobile home park. Then it was a matter of ‘rinsing and repeating’ the process on subsequent deals.
About six months later, our active networking led us to another opportunity – a new development in Knoxville, Tennessee on the riverfront, right next to the University of Tennessee Knoxville campus. This mid rise building is scheduled to break ground Fall 2022. Our partners have developed over 25 multifamily and commercial properties including a Sheraton Hotel and several other mid rise properties on a river or manmade lake.
This will be our first major commercial development project!!! In less than 7 months our acquisitions between these 2 properties and a couple of hours have brought us to a grand total of $82.5 million that our partners and us have collectively gotten under contract. Once these properties are improved and the vacancies decreased the value of the properties will be over $100 million.
To invest in one of our deals, normally requires $75,000 or more. The returns are fantastic not to mention the great tax benefits.
However, for those just starting out or who prefer to start their journey with a smaller investment, we also offer an opportunity to invest in beach villas in the Punta Cana, Dominican Republic and convert them to short-term rentals. You have the opportunity acquire a property solo or with a small group of people. We recommend doing this investment with others to make this investment extremely affordable. This is not a timeshare. You will own the property with a FEE SIMPLE title.
Ready to Get Your Multifamily Portfolio Started?
If you are interested in the multifamily investment and acquisition space and learning how to build your portfolio with other people’s money, we encourage you to join us in the Deal Room.
NOTE: Given my growth and activity in the Deal Room in such a short time, I have been ‘promoted’ to moderator of the group. I would love to see you in there expanding your knowledge, getting your network on, and building your portfolio, not to mention building lifetime cash flow and generational wealth!!
Sooo, join me in the Deal Room, literally! When you commit to 1 year in the Deal Room you will also be able to receive their 8+ hour multifamily course for free plus their underwriting Deal Analyzer tool. To receive these amazing offers, let them know ‘Shonika’ referred you.