In this episode, Quentin talks with a member who is wanting to move from renting out condos to multifamily properties. We touch on how to find those off market deals and screening methods for potential joint venture partners.
The member shares that he had always wanted to get into real estate, as his father was a real estate investor. Ten years ago, he bought a two-bedroom condo, where he rented one of the rooms. His wife also had a condo and she brought that into the marriage. Together, they also purchased a rental cottage that they are putting on Airbnb. He says that his goal is to use real estate as a retirement vehicle. He wants to invest in multifamily units and wants to find a joint venture partner. He is also looking for opportunities to network and connect with people who are already in the business through the Education REI network.
Quentin shares that there are always different parts to every deal, and you can always participate in different parts. When you're talking about multifamily, it is multifaceted. He adds that the member should be considering commercial multifamily properties like 12-to-20-unit range to get started and then move up to 20-to-40-unit range. He further adds that as there are different aspects of every deal, you have to be able to bring some parts to make it happen, such as bringing the actual property itself, bringing the funding to the deal, or helping out in the financing realm and net worth requirement. Another alternative that requires none of that is bringing money into the deal as a partner.
Quentin suggests going through the Multifamily Properties area of the Road Map section, such as Overcoming the Challenges of Commercial Residential Investing, Pros and Cons of Multifamily Properties, How to Acquire and Develop Land, and Electricity and Water Sub Metering. He also suggests going through Raising Money for Real Estate System Joint Ventures, adding that whether it’s a big apartment building or a smaller multifamily unit property, the principles are very much the same. He says that if you want to do the lead generation piece, you should look at the Off Market and Discounted Properties Real Estate System.
Furthermore, Quentin suggests attending both of the Q&A sessions, for the beginners and the experienced investors, as the networking section of the latter would be a great opportunity for the member. He also recommends going through the Action Taker Goal Attainment Program, making the plan, going out and then doing it. On the subject of vetting potential JV partners, Quentin adds that the member can ask them for referrals to people who have invested in one of their previous projects. He adds that building relationships should be a priority, and if there are any agreements, have them reviewed by a lawyer to make sure that everything is done correctly.
He adds “You're kind of doing your due diligence on the person more than the deal itself, because there's lots of opportunities that come along, and then it's about finding the right one for you.” Talking about how he can find off market deals, Quentin suggests going through the Off Market and Discounted Properties Real Estate System course, as it covers the necessary systems and processes. He also recommends being prepared in all aspects before talking to the brokers. He adds that following through is also important because once you stop following through, people will stop wanting to do business with you.
In conclusion, Quentin says that while the journey is not an easy one, especially in the beginning, it gets easier over the time. You can create what you want, but it just takes time to do it. Be the director, be the leader, take a group of people together and move them forward. The things that people call you, see you as an asset, when you introduce yourself, introduce yourself with those skills.