“I don’t always market for private money, but when I do I stay legal”

– The Most Interesting Investor in the World

From afar it seems daunting.

How in the world did they do that? How did they accumulate 2,000 or 5,000 or 50,000 units of multifamily properties? Surely they have more money than God to make that happen right?

Perhaps that’s the case, but for those of us with modest backgrounds there is a way to accomplish the same feat. In fact, I would venture to guess most, if not all, major operators of multifamily real estate use this same method that is available to you!

What is this method?

O.P.M. – which stands for Other Peoples Money. Most gurus may make it sound easy – and it can be once you learn the process. However, they often leave out that it will take determination and drive. No matter who you are this process involves setbacks, rejection, and learning by failure.

Additionally, it will be prudent to involve legal counsel. This area of securities law is rife with opportunities to make mistakes. As a consequence: most that undertake this plan lawyer up.

I will also assert that you must add some value to use this method. In other words: why should they work with you? Sometimes that may mean you are bringing money to the table. Sometimes that may mean you have scouted out an amazing apartment deal that is too sweet to pass up.

Side Bar on Gurus: Just starting out? Several teachers offer coaching for $10,000 or more. It seems to me this money is better spent on deal expenses. With the right experienced partner you will learn while you …read more