Raising Private Capital - How to Buy Unlimited Rental Properties

All right, hello and welcome back to Multifamily Strategy Live. I'm Christian Osgood, your channel host. Officially now streaming pretty much everywhere. So whether you're watching on YouTube, X, Facebook, LinkedIn, Twitch, Kick, whatever, all the things that we push out to, wherever you're coming in from, super, super excited to have you guys here. Grateful for those who are going to be attending today. If you guys have any questions, please post them in the comments. This is an interactive live event that we do every single week at the same time. 5 Central. Today we're talking about private capital. This is something that happens all the time. The money for the middle of your deal, like your earnest money, if you don't have it, how do you close? We talk all the time about using creative finance, uh, buying real estate without money, but where does that money come from and how do you actually pitch this? This is something that I've noticed a lot of people seem to have a huge weakness in, and a lot of people think that the main thing is going to be what is the return and how are you going to grow my money. What you're going to find on today's episode is how you actually grow people's money. While very important, is the third most important of three major points that you need to hit in every single presentation that you do. By the way, I'm gonna go ahead and pull up a presentation as an example of a capital pitch that I have used to raise a couple million dollars recently. So I'll actually go through a summarized version of that exact flow. So I'll prep that here on my, on my other screen here, and I will share that as we go. But first of all, for today's lesson, first and most important thing when you are raising capital for a deal, if you are bringing private capital into an opportunity, you need to follow the order of deal debt equity. So many people stress out about the finances. I don't have the money, so I can't buy apartments. Guys, I've got hundreds and hundreds and hundreds, about $50 million of real estate, and I've never had the money. The money comes in, it goes out. I have cash, I buy a deal, then I find another deal. I don't have liquidity yet. How do we keep buying them? We start with the opportunity. So the first thing you have to do is make sure that you have an opportunity. Imagine it like you're buying or you're selling a car. If you go to a client and you say, hey, I would like you to buy a car. Okay, what car do you have to sell me? I don't know yet, but it's going to be fantastic and I'm going to get you a great price. All right, but how do I know it's the right deal for me? I'm going to make sure it's the right deal just for you when it comes up. But what am I buying? I don't know yet. I don't have it yet. If you don't have a product, if you don't have a deal, It's going to be really hard for you to bring in outside capital. What am I presenting? I'm not presenting anything yet. I'm presenting an idea of a deal and what I hope the deal will look like. That is not how you raise capital. So if you're on the front end of your career or you bought a few rentals and you're just now looking at, okay, well, how do I buy beyond the capital of my own bank account? This is the first thing that you need to get done. It's the deal first every single time. You need to develop a product to pitch, which is the opportunity. All the money is related to this opportunity. Then before we get to where's the rest of the money come from, there's a bunch of debt products you can use. Seller financing is very common, especially today. Seller financing is a fantastic way that you can come in and you can buy properties low to no money down. Is it seller financeable? Yes or no? We need to know this. Is it an option? Bank financing, DSCR loans, private capital. There's a ton of different debt products. While we're not going to go into all of them here today, Just know it's like a dropdown box. You click it and you go, okay, what are the available options? Let's pick the one that sounds best. That's typically going to be anywhere between 70 to 100% of the money that you need for your deal. And yes, I've done 100% seller finance deals. You could buy this $0 down and be done, which is why we don't worry about the capital first. Now, if there's remaining capital, if a down payment's required, there's multiple ways to do this. You can do these as debt or equity. But when we start looking at the final phase of like, let's go raise capital, let's bring on either private debt or private equity, other owners, into our deal to help close this. We have a lot of rules around this, and we always make sure we can buy that person out in the future. Eventually, I do want to own all of my real estate. Even if I can't close it without any partners today, I want a path to own it without any partners in the future. When I'm bringing these people in, I now have a product and a debt product. I have a deal. We're on the finish line. We need the last 30 to maybe 5% down. I now have my entire package put together. So how do we actually pitch for capital? The reason we're all here, the topic of today's video. Most people get very excited about the story. I'm gonna share a presentation. I've actually never done screen share on, uh, on StreamYard before, so we'll figure this out today. In theory, it should work. I'm not too bad at tech. When we go ahead and pitch an idea, I want to fully describe what the project is, not just the good stuff, The good and the bad. Now the bad is always pitched as, hey, this is the thing that needs to be fixed and this is how we're gonna fix it and this is why we're gonna make so much money. The problem is why the deal actually makes sense. You have to be solving some problem for someone. So whatever you think the weaknesses are in the deal and the things that you plan to overcome, don't wait for them to sell themselves out of the deal. Present it as exactly what it is. We are going to solve these problems. There are problems. When we solve them, this is how we're making the money. You overcome 90% of the objections that are going to come up. And you let people get bought into the project. When you do a good job of telling the story of the deal and what your business plan is of it in an efficient, simple manner, which I will show you, if you do a good job telling the story, I am praying that the numbers look good because I already am sold. I want to be an investor in this. It's like, please tell me good news about this. I really want to hear a reason why I can invest in this epic building. I'm going to show you what we're doing on a 76-unit right now. We close in about 2 weeks from when I'm filming this. The story is about 90% of your actual capital pitch. You have to put it together right, and it's super easy to do. Number 2, more important than the returns. If I'm investing money, I want to know that my money's safe. I don't want to lose capital. Investors know this. I do not want to lose money if I'm investing in you. More important than growing it, how do we protect the principal? I need to be able to explain how they're backed, what they are investing in, why it is secure, and I need them to feel, okay, well, our position in this deal today is adequate so that if anything were to happen, at least my original capital is safe. Then we move to number 3. Now that they're bought into the deal, they feel comfortable with the deal. Now we can present, here's the returns and here's how we plan to get everyone paid. So without further ado, let's go into an example presentation. The joys of going live present. At the speed this will let me get. The fun thing about going live, you can only go as fast as the system lets you. There we go. Make sure StreamYard is actually showing what I wanna show y'all. Yes, good, good, good. All right, guys, let's start with the opportunity. Now again, this is fully funded. This is not a presentation for capital. This is an example of a presentation I've done many times. We raised $2 million off this exact 18-slide presentation, but this is the general flow that I just explained. Uh, first thing you're going to do, always give your deal a title. I actually took this from Fixer Upper, uh, but every project they had had a name. Again, you're trying to get buy-in to the project and you're trying to get people excited about your project. Now, I'm not all that creative. You guys can do better than me on this, but I just called it the Neighborhood Deal because we're literally buying an entire neighborhood. They're all fourplexes in a giant circle on 13.5 acres. They look exactly like this. Roofs, 2 stories, big units, single-car garages, driveways, paved parking, the whole 9 yards. In fact, on satellite view, it is literally an entire neighborhood. And because there's a lot of 3 and 4 bedrooms, there's a ton of kids who live here. This is a family-safe area, one point of access. You come in, it's a secluded area in the heart of Stephenville, Texas. Now, not only is this a 76-unit deal that is stabilized and cash flowing day one, I already own 95 other units in this same town. In fact, just today put in an offer on another 84. I love this town. I am heavily involved in this town. All of our systems are in the town of Stephenville, Texas. Uh, the project itself is light tech, which I'll go into in a later slide, by the way, but that's part of why we will make so much money on this deal is because it's one of the only 3 light tech buildings in Stephenville, and I already own one and I'm already operating. Uh, exactly like this in Stephenville, Texas, about like 4 or 5 blocks away. 44 units, also all 4-plexes in a circle on a fairly high-acreage campus. This is just a slightly larger version of something we've already executed very successfully. It's in Stephenville, Texas, built in 2004. This is the type of stuff that we love buying. Now, by the way, since we're not closed yet, I will skip a few of the slides on as far as what price we negotiated and how we valued stuff. I am going to stick to the, uh, presentation, because the goal is to show you how to pitch capital. Again, this is not a presentation for capital. This is a fully funded and about to close deal. But lots of pictures are great. Show the interior, show the exterior, show satellite view, explain the deal. By this point, you're looking at these nice big units, open floor plans, 2 stories, simple maintenance. This is the type of stuff that someone's like, okay, I'm seeing what we're doing here. Qualified contract. There is a way to exit out of some of the land restrictions. Again, this slide is just to bring up the problems with the deal— it's rent restricted— and our business plan to overcome them. So people are like, well, how are you going to raise rent over time? Well, we do have a method, and it's not going to be a year 1 or 2 thing, but we do have a process that we can execute in order to get this property where it needs to be. In Texas, for affordable housing, there's a path to 50% off property taxes. Here is how we're doing our renovation budgets. Now I'm getting into the numbers and the security of the investment. And then you talk about the actual project. Where are we investing? Tarleton University, the number one fastest growing college in the United States. They are going from 23,000 to 30,000 students. Applications are up 80% this year. However, we're not relying on just one school to carry us. While that is a fantastic driver down here, Uh, there is a lot of production for oil field products, for light manufacturing, for heavy manufacturing. Amazon's just about to finish their distribution center down here. And behind all of it, heart of the Texas dairy industry. Second largest rodeo in the state is held here, I believe, as well. So you have a lot of culture, you have a fantastic town, and the thing looks freaking fantastic. If you guys have been through Texas, there's some dusty old towns there, and then there's some really cool ones. Ones. This happens to be one of the ones that's really cool. You have those classic 100-year-old limestone buildings and really awesome modern renovations to the inside of a lot of the buildings. So you have a very modern take on a historic Texas town. It's really fun, lots of culture, and again, really a lot of drive from that local university. Population growth over time in the last 115 years, it's only ever gone up. It's great, great news, great news for anyone who is investing in the area. And this does not take into account all of the college students. If you look at the exponential growth of the university since it went Division I in sports just a few years ago, this graph looks way, way better. This is the type of stuff I like to invest in. What do we provide? Housing for humans. I want humans to want to live here. This demand curve is going up. We're not building enough housing in Stephenville. So I'm doing everything I can to open every space that we can and do the best we can to use the existing inventory. But it does have some upward pressure on pricing in any economy when you have all these people moving in and you don't have enough new buildings coming available. We'll go through rent comps. We'll go through valuation. Again, I'm going to speed through these. A big thing that we're doing is because I have the property management company in the market, our net operating income is going to increase quite a bit. Um, I don't need as much onsite staff. I need some onsite staff. Um, a few other cost-saving things throughout our operation plan. Uh, but we are doing our valuation as such. We have a, a path on how we plan to get a $10 million plus So I talk about the team members on this and how we're putting it together, what Caleb and I have accomplished. And then we wrap up with investor returns, the total raise, which maxes at $2.35 million. $2 is already raised, which is closable, by the way. We don't need more capital. We're allowed to close at that raise. And I always end with a disclaimer. If you're going to do these pitch decks, you don't want to accidentally create a security. I always end with a disclaimer. Hey, this is a representation. Of the offer. This is not a literal offer to invest. This is a summary of a deal on how it's going to be structured. If you were an investor and this was an active deal and you were interested, um, you're gonna have to read the actual legal docs and disclosures and operating agreement, uh, before coming to a decision. Uh, this is called a, uh, CYA, cover your butt. Include these every time you do these. Do not solicit for capital unless you're structured as a syndication, which this one happens to be. But people do have a habit of marketing for capital without doing so correctly. Always include a disclaimer. It's not an official offer and never advertise as, hey, this is an offer to invest in a deal unless you are specifically a 506(c) filed with the SEC, which will not be most of your deals. There we go, guys. That's raising capital. You come in, you tell the story of the property first. Talk about the business plan, talk about the security. Someone needs to feel like, okay, if I park money here, money's safe, business plan's safe, the operators are safe. In sales, there's 3 10s that you need to get to. This is straight from Jordan Belfort, by the way, but 3 10s that you need to get any client to, to say yes. This is true of pitching for capital. They need to believe in the product, which in this case is the building. And the business plan. They need to believe in the company, which is you and your team. And on a larger project, sometimes it's just you. But on a larger project, often there's multiple members, which is why I have those slides on this is who's operating, our experience. I always include those in the, in the presentation. And third, they need to actually trust you. If you are not a trustworthy individual or you have a lot of trouble communicating confidently, that is the skill to work on. Anyone can learn it. Easiest way to practice: go out, order a Starbucks, have a conversation with a barista. And if you realize partway through, wow, I'm really awkward— good, that's good to know. You should start working on it. But you can practice this at restaurants, you can practice communication with friends. There are a ton of books on communication. I don't even know which one to recommend first, but there are a ton of ways to easily learn. And I'm sure there's a ton of YouTube on it. Easily learn how to effectively communicate with others. If you can get that skill, the rest of this, it writes itself. All right, we have some questions in the chat. I'm going to start busting through these and then we will, uh, we will adjourn. By the way, webinar is tonight. If you guys go to my Instagram— I don't think I have a link in this description here, I apologize for that— my Instagram is Christian Osgood. If you guys joined our Multifamily Strategy brand channel You can join the webinar for free. I'm going to go over creative finance tonight for about 90 minutes on how you can buy deals with or without money, how you can do it low to no, like low to no money down. Some of these no money down, even better strategies that I've used to get paid to buy a deal that cash flows day one. You can actually get paid to do the work to find the deal, find the deal, find the deal, find the debt, find the equity, line up the three, push all the way through to close. You can get paid on the close, and you can increase your income for life. If you want to know how to do that, uh, register for the webinar. I apologize for not slipping the link in there, but you can go to Instagram @ChristianOsgood, go to the Multifamily Strategy brand channel, and there's a link right there waiting for you. Uh, register tonight. That'll be after this, in about 40 minutes from this live. All right. So he has $50,000 to invest. Now, I don't have any active deals that I'm currently raising for, but I always do. A great way to get around me and my deals, I have found, is I like to work with people who've already gone through the Multifamily Strategy Community. Not because I just want to sell more courses, that's not the goal at all. In fact, I limit how many people can be in the mentorship. I like to work with people who I know, like, and trust. And so building a relationship is a first, uh, a first step. Then just keeping in touch. I tend to talk about the deals that I'm doing. So if you were to follow the YouTube channel, follow on Instagram, uh, stay tuned. I'll usually talk about the things I'm going under contract for. If you're interested, you can always reach out. Um, if you have $50,000, most of my minimums for investment are $100,000. Uh, but on certain deals, if you wanted to make that connection and joining the, uh, joining Multifamily Strategy is out of the question, which I understand, it's not for everyone. If that's out of the question, you can shoot me an email at christian@multifamilystrategy.com and I'd be happy to try to connect with you. Again, not actively raising right now, but there's always projects in the pipeline. I got some cool ones we're working on. Oscar was able to get multiple deals and go under contract. That's what I'm talking about. Okay. So if you guys have been watching the live for a while, Oscar is one of the people who hops on here and asks questions very consistently. Okay, so you're multiple deals, you're under contract. That is amazing. Everyone should buy— my camera's right in front of this. Everyone should buy the mentorship. I didn't pay him to say that. Even if you already have properties, 'cause— oh, Oscar, that means so much to hear. I love multifamily strategy. The stuff the community is knocking out is amazing. Oscar, if you can do me a favor, shoot me a text or shoot me an email, either one. Let me know more about the deal that you're under contract for. I would love to see it and see a picture for that because I don't know that I have— I'm trying to remember what that one looks like and it's not coming to mind, but shoot me a text with a couple pictures on that one so I remember. But dude, super exciting. Congratulations. Why do sellers ask for proof of funds? Is it a sneaky strategy to— that they use to find out, uh, how much you have? No. What sellers want to know is that you're able to close. They don't want to go under contract for someone who's not able to put the money together. And so this comes down to that communication skill we're talking about, the ability to communicate clearly to another individual. It's basically saying, hey, I don't know you well enough. I don't trust you. I need to know that you have the money. Now, as you get into midsize on small multifamily and single family, yeah, they're going to want it more often. When you get into larger or mid-sized multifamily, so I'm talking like 10 units up, proof of funds becomes less of an issue because most people don't have the funds on them at the time. They're going to be lining up money, they're going to be finding partners. Um, so you're more looking at a normal broker is going to look at, okay, who is the operating team? I want to look at your resume more than I need a proof of funds because you probably don't have the money right now. If you're looking at a property, there's a few hundred thousand dollars down, a lot of people who buy those buildings, myself included, included, are not always liquid that amount right now. Um, it is super annoying though. We have a deal in the mentorship. My buddy Chris is working on his third deal, second deal in, uh, maybe third in OKC. I can't remember where his first deal was, but he's working on another deal in Oklahoma City. It's 14 units, and the broker is getting in the way because they're stuck on proof of funds. He actually has more than half the funds available, so he can show them a lot of money, a business plan. He can show them experience. He can show that he's already operated this type of deal and closed on this type of deal right down the street, the broker's still like, oh, well, we require proof of funds. I think the broker's probably why the deal's been on market for over 100 days. It's a good deal. It's sitting there on market. It's a doable deal. I think they're preventing people from going under contract. Uh, it's more of a residential broker thing. As you get a little bit larger, you'll see less and less of it. Uh, it's one of my biggest— I— it drives me nuts. It drives me nuts. Uh, so yeah, I, I absolutely agree with you. It is, it is stupid and unnecessary proof of funds before you go under contract for a building. This goes to what I started with here, that you don't have a product to sell, so you wouldn't have started a capital raise before you're under contract for a deal. That's insane. What am I raising for? What am I— what does my pitch deck look like? My first half of the presentation is blank. I'm gonna find a deal. I think it's probably gonna— if I was to try to do this, I've been trying to buy in Waco, Texas for a while. I'm not under contract yet, but I'm really really close on the deal. I'm really hoping it comes together. It's between me and one other buyer, so right now straight up 50/50. But if I was communicating this without a deal in hand, I'd be telling people, hey guys, I'm committed to buying a deal in Waco. It's going to be Waco, Texas. It's going to be somewhere from 20 to 90 units. I don't have enough to present. I don't know what the deal is. I can't get people excited about something that doesn't exist. My $2 million to close this thing. Who walks around with $2 million in the bank? Even rich people don't walk around with that just sitting there liquid ready to deploy unless you're doing a big 1031. That's ridiculous. I think they're stupid. They're not relevant to closing at all. I don't know why brokers do that. It's a— I think it's a residential thing. All right, from Kick. Awesome. I did my first time streaming on Kick, and so this is fun. Uh, fun that we're actually having anyone push through from there. Uh, this is of course just an ad from Kick, but I'm glad that the integration works and actually shows up here. So good news, not relevant, but good news, guys, we're streaming everywhere now officially. I love it. How do you find investors? Great question. Best way in the world, in my opinion, because these are free or low, low, low cost almost everywhere. Go to a local real estate meetup. I'm relaunching mine, by the way. I've made the commitment. I'm gonna do it. We're gonna go back to monthly. We're gonna do the owner meeting. I'm gonna kick it off in Dallas, and we are going to rock it. Uh, I lose money on it every time. I'm okay to lose money on these every time because they're free, and I spend a bunch of money to get everyone out there to have a catered event and to do this thing right. Uh, I'm running mine in Dallas. They'll be once a month. I'm gonna come up with the official schedule, and I'm gonna run it indefinitely. At Manhattan Project. They have an amazing space in the back of the brewery, fantastic for presenting. And Dallas is not known for having a lot of good beer. Manhattan Project is the exception. I will— I am not sponsored by them, though one day possibly. They are fantastic. I'm from Seattle, Washington State does know how to grow hops and make beer. I have never had as good a beer as they serve Manhattan Project. That is a wonderful, wonderful brewery, and we host our events there. So if you're in Dallas, go there. If you're in Washington State, my friend Jan— actually changed his name to John now. He's tired of being called Jan because Jan is spelled J-A-N. So John is, uh, he owns a group called Wally. It is the best investor network in Washington State by far. Incredible events. They have stuff north up in Seattle, and they have stuff down in Tacoma. I've always been a fan of the Tacoma one myself. Get around other people who are actively meeting up. Those people are all looking to connect. That's why they're showing up. That's the easiest, lowest-hanging fruit. Join those. Join some Facebook groups. In fact, join our school community. This is free. I should post the link. I'll go find it here if I have, if I have it up on this computer. I might not. Uh, but we have a Multifamily Strategy School Community. If you go to any of my past YouTube videos, not the lives, but on the, uh, if you go to one of the school videos, or let me try again, my, uh, YouTube videos, the actual like filmed and edited ones, I have a link to that school community. Dive right on in there. While you're there, might as well like the video and subscribe to the channel. I'm just suggesting, uh, but hop on Multifamily Strategy, click that link. Join the school community. There's over 1,000 people there. A lot of people fund deals. We post live deals there, post our wins. I'm on that every single day, so you guys are more than welcome to join that. That's completely free, unlike everyone else online. I don't need to monetize everything. I actually just like building community and seeing a whole bunch of deals go. So we're going to get proof of funds twice. Is proof of funds, by the way, getting around proof of funds. I found that people ask for proof of funds about 25% of the time. And broker may, may, and as you get a little bit larger, they ask less and less. So let's say for me, maybe, maybe 15% of the time. Of those, about half the time you can get around it because you have a, you just tell them the business plan. I just explain to them, hey, I'm, I'm gonna be bringing in capitals, the capital partners to this. This is the business plan for this. We are able to close here. Let's rock and roll. I— if you are confident, it usually works. If you don't know how to sound confident and actually feel confident when you're presenting, uh, that's where brokers get really hesitant. They're like, I don't know, I really want to see if you can convince them, hey, I'm a ready, able, and willing buyer, let's, let's rock and roll. Their job is to sell the seller. They should not be getting in the way of your transaction. You should be able to push through it at least half the time. On the rare occasion that proof of funds is gonna be your objective or objection. What are some indicators of a property on the MLS listing or tax database open? All right. Let's see. Is mom and pop owned? I don't actually really care if it's large venture owned or mom and pop owned. Mom and pop is great. I do a lot of seller finance with them. I also have done some large seller finance with institutions. The 76-unit that I used as an example earlier, that's institutional. They're a big institution out of California. California. I'm not looking for the lowest hanging fruit. I'm looking for multifamily deals in the market I want to go. And I want to be connected with everyone in my market because then everyone sends me the deals and I'm just another player in the market. People know who I am. That is immensely helpful if you're trying to knock out a whole bunch of rentals. So I don't look for those indicators because I just look for who owns the building. Let's go call them and let's knock this thing out. I think we've answered enough on Proof of Funds. We'll skip through. Any tips for finding owner contact info? Well, I have an app coming out next month. In fact, I forgot to pay for the, uh, we're launching the data thing. I have to go, I have to go pay for the final, the final piece of this app being launched. I am just about, just about to launch the Multifamily Strategy app. Not only is it cheaper than every other data source out there. It does exactly what it needs to do. You can find any property in the US, click it, find the true owner, call the true owner, skip tracing up to, I believe it's up to 50. I'll double-check that. You get a whole bunch of free skip traces every single month. It reloads. You can target your market. Now, if you want to use this as a batch downloader, you can also add credits and you can, you can use this for traditional skip tracing, but this is designed to do my exact method. Dive into your market, click on the property, call the owner. You can also pull this data into the calculator, which is already built into the app, and you can save your properties and use this as your own CRM. It is super simple. It costs less than half of what my nearest competitor costs. Uh, we had a problem of everyone's systems do a billion things. They're hard to use, and while they're cool, they cost a lot of money every month. We came up with a super cost-effective app. Uh, we're just about to launch Android iOS, that's going to be the best way to do it. Until then, uh, you want to do it free, do the good old Google Maps. If you want to do a paid version, you want to streamline it, the current people in the space are Reonomy and PropStream are probably your top two, uh, that have pretty good owner contact information. Uh, by the way, I use their data source, same data source as them, plus some additional ones. We will have the best owner data out there, uh, by far. I have like 5 different streams that automatically scrub. It's awesome. Been working on this since November of last year. Where do you recommend we pitch investors for syndication? Same place. You're going to go to meetups, you're going to go to online communities. Now, if it's a 506(c), you can publicly advertise it. If it's a 506(b), that means friends and families and up to 35 unaccredited investors. You're pitching a syndication. You can still talk about what you're working on, but you need to be really careful on how you post that online. I'd actually recommend you communicate with whatever lawyer filed your 506(b) filing before you go out and market. Make sure they're in agreement with how you are advertising. How I have done it is I will host events talking about what I'm doing without soliciting capital, without asking for investors. I will just present my deal. However, I recognize I have the advantage. Of the like 15 channels I'm streaming to right now, Instagram, YouTube. I've been doing this for a long time. If you don't have a built-in audience connecting with people within these groups and within these meetups and asking people like legitimately asking like, who do you know who would be interested? So friends, friends of friends, contacts, and contacts of contacts. It is so easy to build your network. But my first deal, I'd never raised capital before. I did not have any of these skills. I did a $300,000 raise. It took 2 days. I didn't know anyone. I had never met anyone that invested in that deal. 3 people, $100,000 each, closed it out. In retrospect, by the way, should have done $600,000 and probably still 3 people, but you should have done $600,000 and not try to renovate the building out of cash flow. But story for another time. We still made $1 million on one deal. It's not half bad. How do you find brokers' phone numbers in detail? I got connected with a broker, uh, in person. Oh yeah, go, go on to something like CREXi and they'll have the listing broker right there. So what I'm looking for, I'll show you guys how to do this right now actually. Present. Give me a second. I'm gonna, I'm gonna dive right into it. Uh, we're gonna go to CREXi. Cool. It's happening. It's loading. If it takes forever while I'm streaming, we'll skip. But okay. Uh, here's a great example. It actually just pulled from my history. This is a building I was looking at, uh, recently. By the way, could be a good deal for those interested. I'll manage this for you. There's about 20 minutes south of Stephenville in a town called Dublin. Um, it's been on market for over a year. Uh, this building is cool. It's a historic building, is in good location, good conditions, right downtown. Uh, but most of the building is down to the studs. So you have this one massive suite that is a— like, I think someone lived in the building who owned the building, so they basically turned like a 2,000 square foot super suite. Maybe a little bit gaudy, but I mean, crazy nice. But then you get to the rest of the building, which I'll skip through here, and you're looking at a whole bunch of studs. Once I get through all these beautiful nice pictures and ugly wallpaper, they have a second little teeny unit downstairs, and boom, studs, garage, storage space. You just have a shell of an old hotel. It has been indicated to me when I talk to the city that they are open to converting this to multifamily. Right now it's zoned for mixed use, as multifamily is one of the uses. They're open to going solely multifamily. Figure that out in due diligence. You may be able to fit 25 units in here. I think you probably do 20 and go a little bit larger. But if you're coming in, I'm imagining this price is probably pretty squishy too. But let's say you came in at $700,000 and you were able to turn this into a 20 to 25 unit apartment complex downtown. And it's a cool looking building, could be a great deal. I want to contact this person. Guy's named Eric Hayden. I can come right in and view their profile and see, okay, what else does this person list? How are they involved? But all of this stuff, their phone number is all right there on any of the listing sites. That's how I get to know most brokers. And if you log in, which is free by the way, it will display the number right here. I'm not auto-logged in here and I will not waste a bunch of time on it live, uh, going through that process. But sign up is completely free. Something like Craxy LoopNet does the same thing, though I think LoopNet pushes you to a marketing number. This pushes you to the real phone, which is why I Crexi to LoopNet. By the way, I worked for LoopNet for 4 years. I know a thing or two about a thing or two with that. All right, let's bust through a few more questions, then I gotta go get prepped for that, uh, that webinar. Well, thank you very much. And also, I'm so glad there's on the Facebook group. We have a— we have so many different places to post stuff, by the way. I've been putting the most energy into the school community, so for those you guys want to get involved now A Green Place. We have like 2,000 members on the Facebook page and I am still in there all the time. So exciting, Oscar. I'm so excited for you. Amazing, amazing job. I'm just super happy that you're going under contract, getting these things done. And that is the goal. Anybody signs up for Multifamily Strategy, it's like a month of learning. Month 2 or 3, you're writing offers. 3 or 4, you're closing your first apartment building. It's like clockwork.. But anyone can do this. I don't care if you have $0 in your bank account. Well, you know, some money, but I don't care if you have less than $10,000 in your bank account. Get signed up, buy your next deal within 6 months. It's gonna be awesome. Dave, I'm looking forward to the app too. My, my dev team's been beating me up too. I need to update my software subscription to get their final feeds connected, but it is, I'm really proud of how it looks so far. I'm excited to get that thing launched. It's gonna be a massive project and we are this close to done. Where, uh, where would we find a loan sponsor? Again, same place. It's almost always your capital contributors. In fact, on the 76-unit, one of my capital partners— I came in, I have the network, I have the experience— they decided they wanted to see more liquidity because it's my first time going direct to Fannie Freddie. So instead of seeing the normal amount of liquidity one would expect They wanted to see about double that in our accounts. Since I don't have double the liquidity that they would usually need, uh, one of the other investors who's already putting in hundreds of thousands of dollars is being added as a sponsor. So it's Caleb, Christian, and then we add one more key principal. They were already completely invested in the deal for hundreds of thousands of dollars. That's usually who it's going to be. Now, on a deal where you're not doing a syndicated structure, which is almost all of deals. I've done syndication once. I'll probably do one more this year on a larger property for a bigger raise, but most of my stuff is joint venture. You're usually just signing on the loan with your other partners, so everyone sponsors the loan effectively. Um, but if you're doing a larger raise and you do happen to have more than 5 people, that's where you start syndicating. If you have 5 or less members, JV every single time. Do not syndicate those. But 5 or less partners, everyone's a signer on the loan, you're set. In a syndication, it's usually the largest few investors are also going to be sponsors of the loan. When you get to that size loan, it's almost all non-recourse debt, so it's usually not a big deal. It's just a few extra steps for them to get underwritten. All right, we did it. We killed the questions. We got all the way through, guys. This is raising private capital. I'm going to give you guys the takeaway and then I'm going to go prep for the live again if you're here watching.— or not live, the, uh, well, the live, but the webinar Creative Finance. I gotta go prep for 90 minutes of driving home the best of the best of creative finance. So, uh, in recap, go in the order of deal, debt, equity. Make sure that you have a deal to pitch. Don't just come up with an imaginary deal. Don't pretend you're gonna have a deal in some market. Have the deal locked up. Once you're under contract, the capital raise starts. The money will come to a good deal. People need to follow these 3 steps. They need to follow. One, is the project exciting? And that's 90% of it. If they are ready to go and they want to invest, they're praying the numbers are great. Two, they want to make sure their principal is safe. They do not want to lose money. Don't let them lose money. Make sure they understand how much equity is in the deal and why their capital is safe. And three, still very important, but the least important of the three, how are you actually going to grow their money? And is it a return that lines up with their goals? If you're a yes across all three, you have just raised capital. Uh, by the way, I'll end on this. Um, I've raised over $20 million of private capital. No one trained me to do this. I just went out and found a deal, landed the debt product, did the equity. Uh, there's nothing special about me. I'm not some magical— there's no, not a magical skill set that I have. I learned how to do it. And if I was missing a skill, I found a mentor or I read a book. It's that simple. Everyone can do this. If you're feeling overwhelmed with capital, I promise you the capital raise is the easiest part of the entire real estate process. Just keep it super simple. Deal, debt, equity. Project, security, return. Keep it all in that order. Your money will find your deals. I'll see you guys on the next episode. And for those joining the webinar, hop over to my Instagram, join the brand channel. The link is sitting right there in the Multifamily Strategy brand channel. I'll see you on the webinar.