5 Ways to Find and Fund Off-market Apartment Deals Without Decades of Experience

Most people think to really get into multifamily deals, it requires decades of experience or being in the club to really get the good deals. But that is a lie. In this video, I'm going to show you five ways investors are closing deals in today's market and over raising their deals in the very first race. We've taught this same method to thousands of investors, from people with tens of millions in assets under management to beginners with no experience at all. And, and they have all realized the same thing, right? Multifamily deals, which by the way, are safer than most any other asset class. They're not just reserved for the largest investors out there. And if you know where to look, how to structure these deals and find capital partners, you will be able to close large deals 10x the returns you're currently getting in all your other investments, and access to an infinite amount of capital for future deals. So number one, the first key to attracting the best deals is narrowing down your buy box and creating a brand around who you are and what you are looking for. Doing this is going to allow you to separate yourself from the crowd, give you deeper focus, save you tons of time wasted on bad deals, and accelerate the speed at which you find the best opportunity. Our buy box is typically 30 to 200 units in the southeast region. However, depending on the size, we can do bigger deals the further out we go, or local deals, we can even go down to 1010 plus units. But this is really going to depend on how comfortable you are with your market and how much your time is worth. All right, so if you're wanting to create 20k plus per month in income over the next 6 to 12 months, you probably need to be shooting for a 50 to 100 unit deal and draw a 100 mile radius of your buy box for finding more opportunities. But then we focus on light to moderate value add apartments. Okay, so this is more stable asset and not as big of a risk for your first large investment. You don't need to focus on heavy value add where you're under 50% occupied for heavy construction plays. Right. We help people who do that, but for most people, their risk tolerance is not at that level. Right. You need to think about what we call lag time. All right? That's the time it takes for you to go from the property where it is currently to being fully renovated and and producing cash flow that is necessary to sustain itself. Right. In new construction, the lag time would be from the time the shovel hits the dirt to the time you're actually Producing income. And this kills most investors because they are depending on market stability and market appreciation. Whereas we are focused on short 12 to 15 month period where we use forced appreciation. So one of our members, Danielle, just found a 48 unit deal for $3.65 million on his very first deal and then raised $1 million fund it. But here's the wild thing. Just recently, within a few months of closing that deal, he was able to find two more off market deals that he now has locked up totaling 294 units. So now he's getting to over 300 units within one year. Okay, take away from this, nail your buy box and build your brand so that you can scale much faster and not waste time on bad deals. All right, number two, so the second key to getting the best deals is, is going direct to seller. If you're looking on market, you are going to waste a lot of precious time chasing the bad deals and you will leave good deals on the table. You must generate off market leads. And more than that, you need to be creating 10 to 20 leads per week to find that home run. What we find across thousands of clients is how you do your first big deal can determine how fast or slow you you go in your income and your portfolio growth over the next few years. For instance, we just closed two deals that we found in the same exact way. One was a smaller deal. It was a 16 unit deal for $800,000, 95% seller finance, $40,000 down to close on 16 units. Right. Not too bad of a deal that was found through one of 100 different ways we have to find deals which was a va. We paid four or five bucks an hour to start calling apartment complex owners in our area. Okay. So that VA found this deal for us. So what I would recommend is get a list of properties, which I'll show you how to do in just a second. Connect with the seller directly through what we call lead, tracing the property and the LLC of the property to find out who owns that llc. Okay. You can also use brokers as well, but I would be looking for the pocket listings. All right. The deals that haven't been shared on LoopNet or crexy. All right. 80% or more of deals that most commercial brokers close are actually off market. They never actually hit the public platform. In fact, one of our members, Stephen, implemented these exact same things with only three to five hours per week, no access to capital. But he found a 51 unit deal in New Hampshire for $5.7 million. And within two weeks of starting, he closed within four months. He found this deal, locked it up, and got it funded, raising $1.7 million. Key takeaway here, guys. Go direct to seller use VAs if you can, leverage pocket listings from brokers if you want to go fast, especially if you have limited time. All right, the third key step is using AI, all right, And a deal finding software to find the best deals on the market. Okay, you can use Costar for this, or if you don't want to pay for an expensive subscription, you can use our dealfire AI software. So dealfire AI, it pulls up the multifamily properties in your buy box, and then you can search for potential distressed sellers. You can look for people that are upside down in their mortgage or sellers that own it free and clear, and then you can offer them to finance the deal for a very advantageous price. You can use this software to pull a list of properties that fit your buy box and your buying criteria, and then click Lead Trace and it will scrub the Internet to find a good phone number to reach out to. And that is what you can have your VA doing as well. Then you're going to create a script to reach out to those people, to reach out to the sellers that will position you as an expert and allow you to use some creative structuring to help sell sellers create a win win situation. If you are not using AI, you are going to be left behind. All right, Another one of our members just the other week closed 34 units for $1.3 million in Columbia, South Carolina, raising $525,000 to fund it. And he came in with no experience and no capital. He came to us and said, this one deal has changed my life. Now he is closing a deal of over 200 units within a few weeks of closing that deal. All right, so key takeaway here for you guys. You cannot use outdated software that can lead to a lot of wasted time with bad leads. You've got to utilize AI that can get you the closest to the best possible deals and phone numbers. Okay, Number four, fourth key is called the reverse funding system. All right? Most people feel like they can't fund deals because they have no one in their network that has money or they don't know what to pitch them. If you can't build trust, it won't matter how many people you know with money. Right? People invest with people, not deals. How you show up to share about the deal can literally be the difference between having a 0% close rate and a 90% close rate when pitching investors. If you have a good deal, you need a strong analysis of the deal. You need solid structures in place and a clear pro forma. Right. Or the future projections breakdown of how the deal will play out for you and your investors. You can use an underwriter or you can check out some of our videos on YouTube to know exactly how to underwrite and assess deals. We also create our members an investor. One page summary of the deal. This one piece of paper guys have helped us raise tens of millions of dollars. The keys on this document, let me break them down for you. You want to share the purchase price, the unit count, the location and what makes this deal such a good deal? All right, what's the story of the deal? Did you buy it for $500,000 less than the property down the street? Then you want to show the cap rate for the deal and the cash on cash returns, the IRR or the annualized rate of return within two years for the limited partner. Okay. For our deals and for our members, we like to be at over 18% plus annualized returns within the first two years. So if you're going to be a limited partner, that is probably what is going to attract you the most. If you want that one page document, just reach out to us and we will give it to you. Lastly, if you can create an investor credibility package about yourself, you can shoot that to investors and that will give you major credibility. I can show you that as well. But research shows the number one reason that people can't fund deals is the lack of trust with investors. Need to see your ability to execute through your presentation and relationship. We have seen it time and time again. It doesn't matter how good of a deal you have if you do not know how to present it. All right, Orlando, he was in a similar situation. He came to us struggling with raising capital, had great deals, but within four days of working with us, he raised $4 million. He literally couldn't believe how fast it came, but because he stayed focused on delivery and presentation, he crushed it. All right, so big keys here are to make sure you have a strong structure in place, clear outline and know how to position yourself to gain the trust of investors. Side note, you always want to under promise and over deliver. All right, number five, the fifth key for today is the REI Capital Attraction system. All right, three key steps are attract, nurture and close. All right, we got to take investors through all three of these, but here are the exact methods I want to break down for you that we are seeing tons of our members deploy to raise capital in today's market, number one is webinar funnel. This may sound scary to a lot of you, but if you know how to leverage other people's networks. Okay, so things like Facebook groups, masterminds, local events, high net worth, individual hangouts. Right. You should use a script for this. But the goal is to provide a ton of value to them on these platforms and then create a webinar that you can invite them to where they can come and learn about real estate and deals being offered on the webinar. You want to walk them through the deal and your ability to execute. Then a portion of those investors will commit on the spot. Plus you can create a calendly page that will allow them to book a call with you directly. So if you want to be a super ninja doing this strategy, you can also call them as soon as they register for the event. Just basically check in with them, make sure they got the link and then you can see what they are looking to achieve. Sometimes you can just close them right there on that call. And more importantly, even if you don't, they're definitely going to show up for the webinar. Even more importantly, you can create email sequences through things like go high level to nurture these investors that come into your funnel daily and weekly until they are in a place where they just know like and trust you. Okay. Just yesterday we had a member named Kevin share that he had raised $2.25 million on his very first deal. But he only needed $1.5 million, which means he over raised by $750,000 on his very first raise. And it was his very first webinar that that he did where he raised $250,000 on the spot and then he raised the rest after the webinar. Alright, so that's how powerful this is. The second way to raise capital that we are seeing is a major opportunity in today's market is through podcast sponsorships. And social media Guy literally just raised $40 million over 12 months using just social media strategies. Another one books two to three investor appointments on autopilot every single week with one small podcast sponsorship. The second biggest failure for newer investors is not understanding how to systemize and automate capital raising. If you do not learn how to do this, you will risk, first off, not closing the deal, second off, losing money. All right, but if you can tap into just one of these streams, you can tap into limitless capital for your next deal or however many deals you are looking to buy. Right. Another member, ricardo, just raised $3 million in four days using some of these exact same methods without any experience prior. Okay, so key takeaway leverage webinar funnels, send emails to nurture them and then use methods like podcast sponsorships and social media strategies to crush your next raise. Okay, if you have any questions on these, just reach out. Okay, we'd be happy to help. These five keys are are not apartment investing hacks. They are investor non negotiables. Narrow down your buy box and your story. Generate 10 to 20 off market leads per week going direct to seller. Use AI to find the best possible leads out there. Reverse funding system closing 90% or more of investors you offer your deal to and then the REI attraction system to create predictable consistent streams of capital Partner leads. We have seen it with thousands of members using these same techniques to change their life. From Steven with no time or money raising millions of dollars to Kevin closing 54 units on his very first deal. And Arthur literally just closed multiple deals and then created a 15 million dollar fund within months, not years. If you want to learn how our members are doing this every day, book a call with us and your future self will thank you. I promise. God bless.