It’s said “who you know” can be a deciding factor in life and business. From my experience I’d say it’s “who knows you” that will be the key.
Here is the deal. I do invest in real estate and I look at many deals to find the diamond in the rough.
Being new to the real estate, particularly to multi-family real estate investment space, I do not have a large network of people yet. There has been several instances where I came up with good deals where a deal had a potential to earn up to a million dollars in a couple of years but I had to turn it down. The reason is my network is small and the people in my network aren’t interested in investing in apartment buildings.
The way apartment buildings work is few people come together, they pool their money together, form a partnership and buy the building under that partnership.
As they operate the property they share the cash flow from rents based on the percentage of the money they put down to buy the deal. Later, when the building is sold, the profits are split among partners based on an agreed percentages.
The reason people form partnerships is because nobody has stacks of cash sitting around. E.g. a building costs $2,000,000 and it requires to put $500,000 cash as a down payment. Let’s say 5 guys come up with $100,000 each to buy the building. Now they are partners and own the property.
This is exactly how large apartment complexes are bought. An individual or a group of people puts a deal together and then they raise the money to buy it.
I brought this scenario so you understand that I can’t buy large properties by myself. I need people to know me and know what I do so they can invest with me.
This is why I am holding a free zoom call every Wednesday 11 AM to meet people and introduce myself. This call is free and informational only.