How To Buy A Multifamily Property With No Money
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How To Buy A Multifamily Property With No Money

Kris Krohn here with Limitless TV and
today we are talking about how you acquire multi-family homes without any
money coming out of pocket. Alright first thing to know about
buying multifamily is that multifamily is in a fairly elastic market. That means
that it’s not like a single-family home where you’re playing this game of trying
to get a discount. Often with multifamily if there’s a discount it’s because it’s
it’s run-down you need to put some investment into the property and bring
its values back up or it’s going to be a matter of raising rents up to where
they’re supposed to be because sometimes properties get mismanaged. Other than
that, the other factor that people look for a multi-family, its cash flow. That’s
what’s fun right? It’s like I have one property, it’s got thirty doors, and it
means that there’s a lot of cash flow that can come out of it. And so these
projects they’re great to do. The only drawback is that you move from and an
amount of money that you can use to get into single-family, when you get into
multifamily you often need to bring hundreds of
thousands of dollars or maybe even millions of dollars to the table
depending on what you’re looking at. And so if you’re watching this video saying,
but Kris I got the money. Awesome then what I’m going to recommend you do is
focus on finding a property that is selling for less because frankly it
needs a half a million cash infusion it needs an overhaul, it needs to, or
and more important it’s finding a property that’s been mismanaged on its
rents. Well each doors running at 625 and it should be 800. Okay, you can add
hundreds of thousands or millions of dollars depending on the size to the
value just by buying something as artificially low rents or need some
fix-up. So look for a project like that because what it can mean is you buy it
you go through a rehab period throughout the course of the year and then when it
comes time to reevaluate it you can add extraordinary amounts of value to the
property. Or if you’re just looking at holding something long-term and it’s a
cash flow play hey these are out there go find your commercial Realtors and
those specialize in these properties and look for the best price. You may not get
a very big discount if it’s fixed up and if it’s already functioning at its
regular market cap rates then you can go in and get yourself some real estate
going. If on the other hand you want multifamily and you don’t have money, how are
you going to pull that off? partners. Partners make the world go round. I use
partners in everything that I do I’ve got so much expertise in finding deals I
always have deals. We’re talking about a market right now where
there is no inventory in my backyard and yet I got deals coming out of my ears.
Why? Well because I invest in the very best places around the country. Getting
into multifamily the thing for you to be focusing on is finding partners and I
want to share with you one tactic that I that I’ve used to find partners that
I’ve been able to do very successfully this is a very very modern cutting-edge
strategy. I think you’re going to enjoy it. Three things you need to attract a partner and do a multi-family home
without any money. The first thing that you need to do is you have to find the
people with money so the first step is to be able to generate a list. Now in
today’s modern world, how do you find a whole group of people that have money?
I’m going to show with you an extraordinarily simple way. What I want
you to do is I want you to set a goal of building your Facebook friends up to
5,000. Now I know some you’re going to have to
adjust your mental privacy settings on well I only want my Facebook friends to
be those people that I’ve met in real life where I want the high school with
or I know personally. You know what? then start a different page all right? Start a
Facebook page where you can get yourself up to 5,000 friends but not not just
anybody I want real friends. You know where you find real friends today? you’re
looking for people that live around the country or in your local area that have
common interests. So for example, we’re talking about real estate gets what
common interests we’re trying to share with people? real estate. So if you were
to go to Facebook and just do a search for the area that you live in and real
estate investors club, real estate investors, real estate support group,
you’re going to find all these different people and if you asked to join those
groups then you can get inside and start adding all these people as friends. Be my
friend, be my friend, be my friend, be my friend be my friend, I don’t know you
other than you like real estate. What this will do over time give it some time
over a few months you can add thousands of friends to your Facebook page that
share real estate investing in common with you. Then with this first step of
how to generate this hot list of people with money that could be good buyers and
partners is once you have the people on Facebook you got to know how to
communicate with them. How do you do that? I’ll make sure, make sure you’re doing at
least 5 posts a week. Post about your family, post about the things that you’re
learning in life, posts about some of the things that are funny. Do high
interaction pose you know where people ask questions get
a gazillion comments from people and then once a week or twice a month, drop a
post about real estate. Just found a smokin new deal my team really came
through on this one looking for a partner with substantial funds if you
have money sitting in for away, 401k, IRA, home equity, or you’ve got money to
invest then personal message me. Well you right now I got 5,000 friends on
Facebook so guess what? If I make that post I’m going to get hundreds of people
saying, I’m in, what’s the deal, let’s play. And you know what? now I’ve got number
one of my three. I got my list of hot buyers. Okay the second thing that you’re
going to need to do is call these people. When you contact them, what I want you to
do is take the deal and start communicating high-level what it is. What
are the numbers? what are the returns? what are the equity? what are the
financial needs? An investor will take someone serious more than just as a
serious deal is a serious person. A serious person, they want to deal with
someone that has the answers to questions so work with me, work with my
team, learn from these videos, have a local mentor in the whatever dealer
you’re working on make sure you can articulate what it is because your
partner is going to have questions. So list, call, and then the third and final
one is, you gotta package the deal. And packaging the deal means you’ve run your
coms, you’ve done your analysis, you’ve got historical rents on the property. It
pretty much means that you’ve looked at the property from every angle and if you
look at a typical typical property package it always starts with a summary.
The summary is who am I, what is the deal, what is the strategy,
how long we going to hold it, how much money we need, what are we going to do
with it, what kind of returns we would expect. And then that, if that’s the
summary then rest of the documents are just the support of saying, hey here’s
the proof, here’s the research, here’s the comparable market analysis, here’s the
historic reds, here’s the repair bids. When you put all that package together
well I’ve just shown you how you can get a list of very serious buyers with money,
I’ve shown you this basics of how to have a conversation and how to package
the deal. Those are three things that are going to aid you on your journey of how
to do a multi-family deal with someone you don’t know with no
money out of pocket. Looks like you got your work cut out for you.
You got these opportunities to take this knowledge and information and go out
there because people are waiting to help come together with you and make these
deals happen. Friends, thanks for taking your time to be with us today hope
you’ve enjoyed this video. Make sure you subscribe and if you really want to jump
in real estate at a deeper level then come out to my 3 day mindset
event where we are going to talk shop on money and real estate. Help you
figure out what your next more aggressive steps look like when we start
mentoring you and pulling all the deals in and helping you become successful in
real estate


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