Posted on: August 18, 2021
WI 756 | Bigger Multifamily Deals

 

Interested in expanding your small multifamily business so that you can run with bigger players? Are you ready to transition into big deals? Then you’re in for a treat! Today’s guest is a man of many talents. Whether it’s building a successful business, hosting a podcast show, or being an author—he has done it all!

Brandon Turner AKA Beardy Brandon joins Chris on the show for a quality conversation about his new book, Multifamily Millionaire. Brandon deciphers some of the themes in his books and offers practical advice for entrepreneurs. He also shares the tactics that he himself has leveraged to build connections and grow his real estate empire, emphasizing the value of simplifying your work process.

Tune in for plenty of gold nuggets and a framework to build your multifamily business into a big success!

Multi-family Masterclass – 5 Principles to Achieve Massive Success with Bigger Deals

We have a very special guest. I’m excited about this conversation with the guest we have. Brandon Turner from BiggerPockets and also Open Door Capital has come over to talk to us, specifically about multifamily and the new book that he has out. We are going to talk about how you make the jump, the transition from doing small multifamily like a duplex, triplex or something along those lines, and how do you move over to the big deals.

That is a transition that I have seen for a lot of people. A jump that’s hard to make and feels like that’s a pretty big chasm but Brandon Turner is going to come in and speak specifically about some steps. We are going to get a little bit into mindset on particularly how you begin to transition and get ready to play ball with the big boys. Brandon Turner, welcome to the show.

Thank you for having me. This is going to be fun.

First of all, congratulations on your book coming out. What number is this for you book-wise?

This is 4, 5 or 6, depending on how you count books. I have a short little one on Kindle.

How does the passion for writing books come about? That’s amazing. Most people never publish one book but you are somewhere between 4 and 6. Where does that desire to write come from?

Multifamily Millionaire

I don’t like writing that much but I write all my books. It’s a discipline that I try to do every couple of years at the most. I sit down and every day I write a little bit. It’s daily practice if I can do that every day. After a couple of hundred days, it’s like, “There’s a book there.” It’s obviously a little bit more complicated than that but I don’t enjoy sitting down and writing. I love having a book because a book is a way to brain dump everything that people want to go out to coffee with me or to learn from. It’s taking all that and brain-dumping it so that I can go out to coffee with 1,000 people or 100,000 people. It’s a mass way to not have to do coffee with every single person.

The ability to take complicated process, organize it and simplify it, honestly, for me, even though we do a show, I love books because they are so well organized. It’s very exciting.

Books changed my life. I read 100 real estate books before I bought my first deal. Every book in my library had changed my life. I have never read a non-fiction book that didn’t change my life for the better. Even the worst non-fiction book I can think of reading has somehow positively affected my life differently. It set me on a little bit better path. I’m a huge reader.

There’s the old phrase, “Leaders are readers.” If you are not going to read, then stop and get out of your leadership position because you are not going to lead well for long. That’s important. I’m an audible guy. I sit there with my notebook, turn on the Audible, and literally take notes. By the time I’m done with the book, I’ve got 4 to 6 pages of notes that have summarized that whole book. It doesn’t matter what your style is. Just get the information into your brain.

Let’s talk about this subject. How to make the jump? That transition from smaller multifamily to start playing with the big boys. You and I talked about this and immediately, it started flowing out of you. You are like, “If I had to come in and talk to the Tribe, I also need what I would want them to understand. Here’s what they need to know.” Number one, committing to quitting. That’s the first thing you would say about this transition. What do you mean by that? Break this down for us.

Committing To Quitting

Committed to quitting, this applies to wholesalers, flippers and small landlords. This concept changed my life. I hope it changes yours. Early on in my real estate business, I did some flips, got some small rentals, got warmed up, and tried to figure out my way through this real estate world. I remember thinking how much I hated talking on the phone to tenants. I had three tenants at the time. I hated when they called me. The phone would ring, I would look at it and sigh. The best word to describe it is heavy. There are things that we do in our life that feel heavy.

Some of you reading this is going, “This guy is an idiot. It’s so easy to answer a phone.” It’s not about easy or hard. It’s about heavy versus light. Answering the phone felt heavy. I hated it. Other things feel heavy. Some things feel super light. Me getting in front of a crowd of 10,000 people, talking and making jokes? I can do that all day long.

It feels super light but answering a single-tenant phone call is difficult. The very first thing I ever quit was answering my phone when tenants call. I didn’t abandon the tenants. In other words, I created a system for someone else to handle that. I hired my mother-in-law at $200 a month. She quit her job, retired and was out of work.

That’s a great deal.

I was like, “You are going to have 5 or 10 phone calls a month. Just answer the phone. If they have a problem, deal with it. If you need a contractor, here’s our list. If you have a problem, call me or text me but I don’t want to ever talk to a tenant again.” My life improved tenfold that day because I was not doing the thing that was the heaviest for me. I found something else that was heavy for me. Slowly, I started doing less that was heavy and more that was light. Principle number one here is committing to quitting. In other words, get out of your way.

Stop doing this. You are the only one that can do anything. You are alone when they can do it right. Start to commit to the process of, “If I’m going to get into this multifamily game, any large real estate or big-business way of doing real estate, I’ve got to commit to get out of my own way, lower my ego and quit the things. I had heard a billionaire one time say, “The secret to a success was being a quitter.” The host asked, “What do you mean by that?” He said, “Everything I do in life, my entire career has been, ‘how do I quit this and never do this again?’”

It’s about firing yourself from those positions as quickly as possible and replacing, so you can evolve and move on fully.

It’s a mindset for sure.

Liz Wiseman says she always talks about, either you are going to be the genius or the genius maker. If you are the genius, that means that everything is on your shoulders. You are never going to evolve to be able to do the bigger things. You have to make geniuses to play at a big level because you need a great team. What do you want to be the genius or the genius maker?

WI 756 | Bigger Multifamily Deals

Bigger Multifamily Deals: Get around the people who are at the level, that the level you want to get to, it’s just no big deal for them. That everything you do, treat it like a hobby, not a business.

 

Multipliers, is that her? I’m in the middle of that one.

Big Deals Are Not A Big Deal

Yes. It’s a great read by the way. That leadership book, I have handed that out quite a bit. I had a guy who called me one time and said, “I was having sleepless nights because that book challenged me so much on my leadership style in my organization.” Multipliers by Liz Wiseman, one of the best leadership books I have had. Committing to quitting is going out of your way. Remove yourself from the heavy stuff, focus on what you are good at and start leveraging. Let’s go to number two, getting around the bigger players. You said this, “Where big deals are not a big deal.” Talk about the importance of this transition.

I interviewed this guy once on my podcast. His name was Kevin. His very first year flipping houses, he flipped 100 houses. He didn’t scale up and buy one the first year, and two the next year. At the time I’m flipping 1 or 2 houses a year. He’s like, “The first year I’ve got started, I flipped 100 houses.” I was like, “What do you mean you flipped 100 houses?” He’s like, “All my buddies were in real estate and I wasn’t in real estate. They were flipping around 100 houses every single year. When I started, I didn’t know that’s not the way most people do it. I didn’t know that’s not how it’s done.”

In other words, he got around people who were doing 100 deals a year, and because of that, he started at this mindset level where that was a normal thing. The idea is you want to get around the people who are at the level you want to get to it’s no big deal for them. My story about how I’ve got from small to larger multifamily is I went to a conference. It was Joe Fairless’s Best Ever Conference out in Denver a few years ago.

I’m there, up until that point, I had only done small deals. The biggest property I had was a 24 unit but I treated it a small deal. I changed every toilet, painted every unit myself. I did everything myself. I treated it as a single-family house or whatever. It wasn’t a business. It was very much a hobby. I go to this conference, and I’m on stage speaking because I’ve got a loudmouth, and they put me on stage sometimes.

I realized I am the least qualified person in that room by far because everybody there is doing these huge multifamily deals, self-storage, syndication, mobile home parks, and all this stuff. I’m like, “I’ve got myself another duplex.” I felt so inadequate at that moment because I didn’t deserve to be there. Not that I’m going to be happier if I do bigger deals or that my life is going to suddenly improve but I wasn’t happy because I knew I was taking the easy way out.

I was living inside my comfort zone and I was like, “This is fine.” I committed at that point where I was like, “I want to get around more people like this. I want to be in a room where like, “We took down to a 200-unit property, not a big deal.” I’ve got an email from a guy, “You want to join me on this 450-unit property?” I’m like, “That sounds cool.” That’s not a big deal. I think about a few years ago, if I’ve already got that email, I would bet I’m freaking out like, “What do you mean? I can’t do big deals.” They are not a big deal anymore because I’ve got around people who had that mentality of, big deals aren’t a big deal.

The fact that you felt that way in that particular room, for me, that’s evidence that you were exactly in the right room. This was a long time ago. I squeezed into Entrepreneurs’ Organization, EO. If you are not familiar, it’s a global network of entrepreneurs. You’ve got to do a minimum of $1 million in revenue to get in but they are such big players in there.

I remember we went on a retreat with our forum and we did this exercise that was called Start, Stop, Continue. What you would do is you fill out a card for each of your form guys. These are guys that are running companies that are doing $20 million a year in revenue and up. There are a couple of guys that have private jets. I was not supposed to be in this room but again, I worked my way in because I was like, “I’ve got to be in this room.” Nobody knows what they are writing on your cards. I still have these cards.

Get out of your own way and stop thinking you’re the only one who can do anything right.

When I’ve got mine back, there was a consistent theme across it. On the one thing, just start doing. 4 out of the 8 guys wrote the same thing and it said this, “Think bigger.” It changed my life to be around those guys to recognize the one thing they saw in me. They wanted to raise me up. They wanted me to play at the level they were playing at. It was to think bigger. I imagine you walking into that Fairless conference that you went in and you walked away going, “I’ve got to think bigger.”

That’s it. You get around people who are thinking bigger than natural automatic things. I’m part of a group called GoBundance. When people ask me, “What do you get out of that?” Same thing with EO. On a day-to-day basis, can you say, “This is the impact I made?” Not usually. I have been a part of numerous groups and masterminds. It’s hard to pinpoint like I put in $1 and I’ve got out of $2. I think differently because of being around people who think differently.

Here’s a very small example. I’m hiking at Diamond Head on Oahu. It’s an amazing hike and an old military thing on top of a volcano. It’s super cool. I’m hiking this thing but there’s no parking because they have zero parking at the top. They have twenty parking spots. 20,000 people are trying to get there. I’m at the bottom of this volcano. I’m hiking up on the road to get to the point where I can start the hike. It’s a 2-mile walk and I’m like, “How has nobody started a business?”

WI 756 | Bigger Multifamily Deals

Bigger Multifamily Deals: The better you know your numbers, the easier and the less fear you’re going to have. The more likely you’ll be able to make a good offer and be able to build a system around going after deals.

 

I start thinking about the business. I would buy a minivan. I would charge people at the bottom of the hill $20 to drive to the top of the hill. I make a $100 per drive up. I then charged people to go drive down the hill. That’s level one basic thinking. How most entrepreneurs start is thinking at that level. I’m, “I wouldn’t do that. I don’t want to drive a car all day. I would hire someone to go and drive that car.” That’s thinking bigger. They would drive that car to the top of the hill. They charged $20 and I would sit on a beach and be making a few thousand dollars a month in passive income from running a business.

I’m like, “I wouldn’t want to do that either. That’s still level two business,” which is fine, nothing wrong with that. You are dealing with the personnel, the hassle and all that. I’m like, “What’s thinking bigger?” I don’t have a great answer for this one. Thinking bigger is like creating a ride-sharing company called Uber that allows anybody to have a car and drive up the thing.

There are different levels of thinking bigger but most of us, if we are entrepreneurial at all, we think like, “I can go do the work myself,” versus thinking bigger. Getting around bigger people to do bigger deals where that’s the normal thing, it changes the way you think, changes the way your mind the way those synopsis jump to.

Deal Or No Deal

It’s a great point. Number one, committing the quitting, number two, getting around the big players. Let’s go to number three, mastering the underwriting, understanding this. Deal or no deal. Talk about this.

All real estate, wholesale, flipping, rentals, every property has a number that could make it a good deal. For those reading this that maybe have done a few deals before or maybe you are pretty experienced at this point with the smaller stuff when you look back on your life in the beginning, you didn’t know how to analyze a property. When I say underwriting, what I am referring to is the process of analyzing a deal, beginning, middle to end, knowing how much you can pay for it, and feeling comfortable with it.

At the beginning of any kind of real estate, if you don’t know how to look at the numbers and how to analyze them, it’s scary. If you are a master at knowing the numbers and if you are confident like, “That’s what it’s worth. I could sell that property for $200,000 and this $30,000 of repairs. I could pay $110,000 for it.” You feel super confident in going into those conversations with the seller because you are like, “I know my numbers. I’ve got them.”

The better you know your numbers, the easier and the less fear you are going to have, the more likely you will be able to make a good offer and be able to build a system around going after deals. When I say master underwriting, it means you are going to have to run the numbers on a lot of larger multifamily properties if you want to get into multi-family. It’s a different game. It’s the same math as a normal rental.

When you buy a duplex, you’ve got your money coming in and money going out. That’s basically the same thing but there are so many more components to it. It’s multidimensional when you get into the larger deals. You have to understand everything from what’s the water bill and sewer bill going to be. That’s all good stuff but then you’ve got to think of assumptions in the future. What do we think appreciation is going to do in this market over the next seven years? Is it going to be 1% or 5% per year?

We had to make assumptions and try to predict the future. We can’t predict the future but you don’t want to be off because you are trapped in a deal once you buy it. You need to be conservative, yet at the same time, if you are too conservative, you are never going to deal. Master underwriting is the running numbers. Look at dozens, if not hundreds, of large multifamily deals and figure out, “How I can feel comfortable knowing this analysis is the true and correct analysis to the best of my ability. Now, I can go forward and make an offer.” It’s knowing your numbers.

The very first fix and flip coach I ever hired, my first investor coach, was me and my business partner. We have not flipped properties before. He was an old-school guy. He had been in Dallas, Fort Worth forever. He has done thousands of deals and he has been in a game for 40 years. The very first thing he had us do and I remember we were balking at it a little bit because we didn’t feel it was efficient but it was so important, he’s like, “You need to go walk these 25 properties and report back to me on the repair amounts and what you think about the deal.” That’s exactly what you were talking about. He understood that the first thing he needed to teach us was how to underwrite a deal and to be comfortable walking houses.

I remember going, “All is good. Take us to 25 properties and do this,” but we did it. By the time we were done with those 25 properties, when we had walked into a deal that was our own, we were already more comfortable with understanding the property, the rehab that was needed, and so forth. He was building confidence by increasing our ability to understand the underwriting.

You don’t want to be off in your deal because you’re trapped in it once you buy it.

You have to get your repetitions over and over, whether you want to buy your first wholesale deal, flip, rental, it doesn’t matter, especially on the large, multifamily where there are millions of dollars involved, you’ve got to get your reps in before you start making offers. To do that, you analyze and walk a ton of properties, talk to a ton of investors about how they do their numbers, watch YouTube videos on it, pay for a course, a program or get a coach. Somehow get your reps in so that you could feel more comfortable going forward.

Personal Brading

Great and practical. Let’s go to number four, building your network and personal brand to be able to raise private capital. It is important. I continue to raise a lot of private money, whether that be for doing deals or buying companies, whatever that looks like. This is something I see people, even at a high level, struggle with. It seems like raising particularly private capital, not bank capital can be an enigma for people. Talk about this because this is a big one.

Most likely, if you are going to go into multifamily, you are going to be raising money. If you are going to be raising money, you’ve got to get around people who have money. This is hard for a lot of people. I want to talk about some of the things that have worked for me. I’m in a special spot. I’ve got a big podcast, so do you but it doesn’t mean that people are reading this, a YouTube channel, Instagram, Facebook or a local meetup.

In other words, have something where you are the person that people know as the expert or at least a trustworthy source. When we say building your personal brand, that’s all I’m referring to. You need to be the person in a lot of people’s minds that when they think real estate, they think you, especially if they are thinking, “I want to invest in somebody’s deals.” Where are they going to go? They are going to go to you, ideally.

It’s as simple as going to real estate meetups, joining local networking clubs, events or going to real estate conferences are a huge way to do it. Of course, online networking is huge. We’ve got over 600 people who have invested in my deals, and most of my investors almost all come from Instagram. In fact, I had somebody once tell me the reason they invested in me, in Open Door Capital, in my real estate deals is because of the way I talk about my wife. That’s a weird concept. Aren’t they going to look at the numbers and want to know what the deal looks like? They are not. The truth is people aren’t investing in your deal. They are investing in you as a person. All you need to do is to be a trustworthy person.

That is the secret to raising capital right there and people miss it. They are not investing in the deal. They are investing in you. Do they trust you?

Every other post on social media is some rant about something or you are clearly unstable, or you get in these long angry debates about stuff that doesn’t matter. People intrinsically know how you do anything is how you do everything. The way you portray yourself online, put your marketing materials together, your website looks, and all that stuff is generally how you are as a person. Everyone is forming an opinion of you all the time.

Think about that in every situation you are in. How you do anything is how you do everything and people know that. It doesn’t mean you have to have a podcast or YouTube channel though if you want to raise a lot of money, it is helpful to be that. In nowaday’s world, we have this opportunity where pretty much anybody can create themselves into a niche celebrity. In other words, somebody that is well-known to strangers that you have never met in person but then you are well-known. They are like, “I feel I know that person.”

I personally like Instagram. Instagram builds relationships better than almost any other platform out there. Even Facebook, TikTok or those platforms that are bigger maybe than Instagram. I think Instagram will build long-term relationships better, which is what you want when you are raising money. My Instagram is @BeardyBrandon. It was @BrandonTurner_2 or something like that and then I changed it to @BrandonTurnerOfficial, but I thought it was weird.

Beardy Brandon was not a nickname that I had in high school or my buddies gave me. I was like, “How can I be more memorable online?” I thought of Beardy Brandon. I’m like, “That’s an easy phrase that pays.” It’s a phrase that people can remember and it sticks in their heads. People need frameworks. When I say frameworks, they need an abstract concept. A person is an abstract concept, an idea like BRRRR investing, house hacking or even wholesaling.

They are abstract, complicated processes. When you can boil things like that down into a framework like BRRRR, Buy, Rehab, Rent, Refinance, Repeat, house hack or a wholesaling that then people can understand. People are the same way. Beardy Brandon became a framework. How can you make yourself more memorable or knowable, whether it’s your company name? I know a guy whose company name is I Heart Real Estate. That’s his brand. That’s him. When you are thinking about the online brand, being a person on Instagram is fine but if you want to take that up a level and try to broaden it, think in terms of framework. How can you make yourself into a framework?

You made a couple of great points there. Getting down into particularly what you are known for more. Importantly, though, you can teach all you know but people will learn all that you are. I remember a couple of things about raising capital that was big for me. When I first started raising capital, I already had relationships, people I trusted that had money that I knew via real estate over the years.

When I went to them, I had one guy, in particular, who said, “Chris, I will lend on any deal you do and it’s because of this. I know that you would go deliver pizzas every night until you paid me back. That’s the reason I’m giving you the money.” I don’t know about you, Brandon, but most of the time, when I call my lenders for raising capital, they don’t even look at the deal.

They say, “How much and when do you need it?” I don’t even talk to them in between. They send it on the date you said you are going to send it back on because there’s that level of trust. “If I give it to Chris, I can trust that I’m going to get paid back.” That makes a big difference in raising capital. That’s why raising capital is such a personal relationship thing.

I have invested in other people’s syndications before and put my money with other people. I have never read the PPM. The big long legal document that comes up. I have never read that from anybody. I have never even looked at the summary of the deal for more than about three seconds. I’m like, “Okay. Cool.” It seems horrible advice you would give somebody. I wouldn’t tell you to do that. Everyone should go out there and read all their documents or whatever.

This is what I say to people who ask me, they were like, “Are you going to invest in Bob’s deal over there? Bob sent out his PPM.” I’m like, “Yes, I am.” I have friends be like, “What do you think about the fact that he only has $37,000 a unit plan for painting and his landscaping budget?” I’m like, “Do I trust the guy or not?” I don’t know what paint costs, a new door cost or any of that thing with the property.\

The K. I. T. E. Principle

It ultimately comes down to, “Do I trust that person to do what they say they are going to do. Do they have the integrity to do what they say they are going to do to everybody and themselves?” If I do, then I’m going to give them the money because their guess is as good as mine but I would rather have them driving the ship than me driving the ship with my money. If I’m going to go throw it in a bank account that sounds silly. I invest in all my own deals instead of most of the other people. The bottom line is, I either trust or don’t trust somebody.

WI 756 | Bigger Multifamily Deals

Bigger Multifamily Deals: When you get into bigger deals, there are teams involved. There are always different roles. Now, you could do every role, but chances are, you’re not going to be great at all those roles.

 

That trust is built over time. I call it the KITE Principle. I will give you another framework. If you want to raise money, whether it’s for wholesaling, flipping or big multi-family, there are four principles. You’ve got to have it written down. KITE is an acronym. Number one, you’ve got to have Knowledge. That’s free. Read a ton of books. Listen to a ton of podcasts. If you are getting to multifamily, you should be able to tell me what the difference between a 506(b) and a 506(c) is. What a waterfall is or a 15% IRR is? You should know those things and they can learn all of them in a book or two and podcasts.

That’s one of the reasons that I write books as I said. Volume II of our book series, The Multifamily Millionaire is all about the larger deals. Volume I more than with smaller deals. Number one, Knowledge. Number two is Integrity. Do you do what you say you are going to do in every situation? When you put on your Instagram or Facebook, “I’m going to lose 20 pounds. I’m working out.” Do you do it? Can people trust you that you are going to do what you say you are going to do in every regard? If you tell an investor or private lender, you are going to call them at 5:00, are you calling them at 5:00 or 5:05? That 5 or 2-minute gap says a little bit about you.

Number three, the Tactics. Do you have a plan in place like, “This is the tactical strategy I am going to use to reach whatever number that they want to get?” I will give you an example. In the beginning, we didn’t call ourselves multifamily investors. We’ve got specific and said, “No, we buy mobile home parks that are between 100 and 300 units anywhere in this part of the country that have this occupancy level and don’t have this or that.” We’ve got very specific on the tactics that we are going to do. When we explain that to an investor, they were like, “That sounds good. You know what you are talking about.”

They have no idea what I’m talking about but they are confident that I do because I’m confident in my tactics. We’ve got Knowledge, Integrity, Tactics, and finally, the last one is Experience. The more experience we have, the easier it is to raise that money. The people who are reading are going, “I don’t have experience.” I will talk about that one with number five but that’s KITE.

Smaller Piece Over No Piece

That’s a good acronym. It’s memorable. Let’s bring it home at number five here. That is to learn to understand that sometimes taking a smaller piece of a big deal is better than taking pretty much nothing from no-deal because you couldn’t swallow the whole thing yourself. Talk about this concept of how to get into the game. It doesn’t mean you always have to have 100% ownership of the deal. It’s willing to get in and to take a smaller piece to be around those people.

Break this down because this is an important step that people might understand that I’m not going to go out and I don’t want to hold you back. If you go buy a 250 or 350-unit complex on your own first time, that’s big. Knock it out. For some of you reading, it will be like, “I want to get my feet wet and understand that is before I take that big jump.” Break this down a little bit because this is a great part of the strategy.

One of the biggest differences between small and big deals is that big deals require teams. They are very team-focused versus, “I can do it all myself.” As I said, I had a 24-unit. I did everything myself, no teams. It was just me. Every day, a 100-hour workweek, getting that property fixed up and rented. That doesn’t work when you get into the bigger deals.

There are teams involved at almost every level because there are always different roles. Could you do all the roles yourself? Yes, but chances are, you are not going to be great at all of those roles. It goes back to what we talked about with number one, which is committing to quitting. Find what you are great at and bring other people who are great at that stuff.

People aren’t investing in your deal. They’re investing in you, as a person.

For example, in a larger multifamily deal, you are going to do big syndication. You are going to have somebody who needs to be able to find deals like an acquisitions person who’s the sales type. It’s a very different mindset than maybe the underwriter or the analyzer, the person who needs to go and run the numbers, run hundreds of properties, and get down to the specific numbers. Those are two different roles. Could they be the same person? Yes. Could you find somebody who is awesome at one and somebody was awesome with the other? Yes.

There are things like investor relations. Who’s going to be talking to all the investors? It’s a lot of conversations people want to talk to you on the phone and be able to have that conversation to know their money is in the right place. The actual process of wiring money from one place to another safely, and having the right portal on the backend that people can log in, that’s the process. That’s investor relations.

There’s usually a role called the KP or Key Principle. It’s somebody wealthy enough to be able to sign on all the loans. That somebody is typically getting the loans, talking to all the banks, the lenders, and running all that stuff. Also, asset management who’s going to make sure that the property runs afterward and it’s running well while somebody else is going out there to find the next deal.

There are all of these roles. It’s very much a team sport. It’s like football. You’ve got a quarterback, running back, the wide receiver, and all of these people that when they work together doing the thing that they do better than anyone else on that team, that’s what wins a Super Bowl. It’s true in every sport and large deals.

Don’t feel like you have to go do it all yourself. In fact, one more quick story about my journey in this large world. When I started, I brought in a partner. His name’s Brian Murray. He is my co-author on the books that were released in The Multifamily Millionaire books. Before we wrote the books, we partnered up on this Open Door Capital thing.

Brian is a big deal. Brian had done thousands of units before I partnered with him, a way bigger deal than I am. He’s way wealthier and connected than I am. I started feeling a little bit of a reluctance to give up equity to a partner. He’s not the only partner. I have seven different people involved in Open Door Capital. Mostly, Brian but between everybody, I gave up over half of my company that I’m now losing. That’s potentially hundreds of millions of dollars down the road I’m losing.

The question I had to ask when I started feeling constricting was, “I don’t want to give up equity.” I started feeling greedy. “If I gave away half my business to somebody else, could I do twice as much? If I had the right people and they had half of my business, could I get twice as much?” The answer is a resounding yes, of course. I could do twice as much. I can do ten times as much. In other words, when you partner with people, you are not losing money. You are investing in people that are going to make you way more wealthy.

GP is the phrase for the people who put together a big deal. If you own 5% or 10%, that still is better than if you were to go do it all by yourself because you could probably do 10, 20 or 30 times more, or you can learn in the beginning. To bring that all home is, in the beginning, if you can take a small piece of a large pie to gain knowledge, experience, credibility, and to get around the people who are doing the bigger deals, that’s how you get started largely, and that’s what I recommend everybody.

Completely and absolutely worth it. It’s always the question. “Do you want 100% of a $100,000 or do you want a percent of a $1 million?” The ability to partner with people allows you to do things at scale, which again outweighs the percentage you gave up because you make more and you are driving up revenue to a level you can never get yourself. I completely agree.

Summary

WI 756 | Bigger Multifamily Deals

The Multifamily Millionaire, Volume I: Achieve Financial Freedom By Investing In Small Multifamily Real Estate (The Multifamily Millionaire, 1)

Let’s summarize this real quick, 1) Committing to quitting. 2) Getting around the big players where big deals are not a big deal. 3) Mastering the underwriting, understanding of something is a deal or no deal. 4) You’ve got to network and work on your personal brand to gain the trust to raise capital. 5) Be willing to take a small piece of a big deal if it gets you in the game.

We gave a great perspective. For those of us that have not done multifamily, if you are reading and you are like, “That is such a big thing but it’s in my heart to do.” Brandon, you did a great job coming in and helping with the mindset. If you want to go deeper on this, if you are like, “I want to get into some deeper meats and practicality on multifamily, then I highly recommend that you pick up Brandon’s new book. You can go to BiggerPockets.com/store.

I don’t know about you, Brandon, but I have found when it comes to a topic that I don’t know, I’m only 1 to 2 books away from understanding it at a level that most people don’t understand it already that are in it. I am literally amazed that I’m 1 to 2 books away because most people don’t take the time to read on that.

I heard that from Tim Ferriss, not personally, in The 4-Hour Workweek. He has a phrase in there that says, “If you want to become an expert at something, go and find the top book on that subject. Go on Amazon and find the top book, 2 or 3 read them and you will instantly be smarter than 99% of people, even people in the industry.”

You will sit down and realize that people jump into stuff and don’t take that learning. We are telling you that if multifamily is something you want to do, you are getting a vision for that or that’s in the future but I would like to whet my appetite, then definitely go in and pick up Brandon’s new books. Brandon, I appreciate you coming on. Wrapping up, is there any last thoughts or anything you would like to leave with the Tribe? We want to thank you so much for popping over from the BiggerPockets Tribe to hang out with the Wholesaling Inc Tribe. It’s much appreciated but anything you want to close this down with.

I will leave you with this. It’s a phrase that Jordan Harbinger, who was a guest on our podcast. He said this and it stuck with me since then, “Dig your well before you’re thirsty.” In other words, if you want to get in a multifamily five years from now, the things you do now are going to make that possible later on. Start digging that well of the quitting, the outsourcing, and the thinking in a different way. Get around bigger people, so five years from now, you will be a different person.

Get good at running the numbers now on small deals and start edging into those bigger deals. Start building your personal brand and living in integrity, and then get around those people that you can start getting a little piece. Even if you put LP money, you put $50,000, $20,000 or $10,000 in somebody else’s deal to see how this works, do it. Dig your well now before thirsty.

What a great thing to close down the show. To the rest of you, thank you so much for joining, as always. We will catch you soon when we add more value. Thanks.

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About Chris Arnold

WI 741 | Maximum ImpactChris Arnold is a 15 year Real Estate veteran who has closed over 2500 single family real estate transactions in the DFW metroplex. Chris is the founder of multiple companies that are managed by a US virtual team, which allows Chris to run his organizations while living in Tulum, Mexico full time. His passion for leaders has led to the creation of Multipliers brotherhood which serves the top 5% of real estate entrepreneurs out of the US. Most recently Chris has launched his REI Radio coaching program. This program is designed to teach real estate investors the marketing stream that everyone knows about but NO ONE is doing!

 

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