How to Recognize and Seize Opportunity 101
Tuesday, November 3, 2009 at 06:37AM Bob is an experienced real estate investor that acquires stabilized, institutional-grade multifamily properties with a value-added component.* For the past 8 months, I have been working closely with Bob, introducing him to my contacts that are prospective investors for his deals. The reason I choose to put my credibility on the line for Bob, is because he has a focused mission, clear vision, sophisticated strategy, and a tight operating plan that drives the execution of his business model. These success factors allow Bob to quickly create exceptional value for his investors. Additionally, his pitch/investor presentation (which I have now heard two dozen times) is crisp and refined and he can answer any questions investors may ask.
Bob's knowledge of his market and business model, combined with his ability to execute, has impressed me such that I decided to hire him to coach me through the process (see my previous post, How to Leverage the Power of Process) of acquiring my first institutional-grade apartment building. My target is to complete my first acquisition by the end of Q1 2010. For this new venture, I have taken on a partner that I trust implicitly. The reason I selected this partner is because he is primarily interested in the operations side of owning an apartment building, which involves overseeing property management, while I am more interested and skilled at growing the business (e.g. buying more apartment buildings).
Multifamily is an attractive asset class for many reasons and debt and equity financing are readily available if you find a good deal and can offer respectable returns to your investors. Bob has been targeting particularly strong sub-markets in Texas for his acquisitions and I have chosen to target sub-markets in South Carolina for my own acquisitions. These deals aren't "sexy" because we are looking for C/B properties in A/B areas, but the returns are strong and you can increase investor equity quickly if you buy the property with a value-added component. The most challenging part, believe it or not, is finding a good deal.
*If you don't know the meaning of more than half of the words in this sentence, choose to educate yourself and look them up. Remember, you can't truly know about a subject until you understand the vocabulary that is unique to it.


Reader Comments (2)
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