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Multifamily Legacy Podcast

May 21, 2019

Painting a Bob Ross is almost like doing a real estate deal. You have an idea of what you're going to do, but then you mess up. You pull back to take a look and reflect. There are no mistakes, just happy accidents. Things happen for a reason.

Today, I’m starting a miniseries called, Hawkeye Towers: The Good, the Bad, and the Ugly. It’s a conversation about what went right and wrong with a recent deal to help you understand the underbelly of what really happens in multifamily deals. Many people talk about how great it is, but forget to tell you the truth. It’s not always sunset and palm trees. Sometimes, there's a little snafu. But everybody will forget anything bad that happens in a deal, as long as you close.

Topics on Today’s Episode:

  • Losing in best and final; don’t cry about it, go back to work
  • Hawkeye Towers: Student housing project via same broker as Eagle's Village
  • Transactional relationship was established; did what we said we're going to do
  • During a deal: Go slow, understand what you're doing, and follow your process
  • Site Visit:
    • How close are you to the college?
    • When was the property built?
    • What amenities does it offer?
  • Figure out financials for Letter of Intent (LOI); why does seller want to sell; what's their motivation?
  • Perform physical and financial audits on property to know the numbers
  • Sellers get amnesia, miss opportunities, and forget how to operate
  • Red Flag: Seller can’t get lease rate back up to 90% occupied for underwriting
  • Understand and abide by contracts because they bring out the worst in people
  • Intervention and Alternative: Finding loans is about relationships

Links and Resources Mentioned:

Quotes by Corey Peterson:

“Power of transacting and having broker relations: When you can get to that point where...they like you, and they want to do business with you.”

“Even though deals kind of go south, get weird, and all that stuff, when you close, all sins are forgiven.”

“I'm slow for a reason. My team's slow for a reason. The reason is, we have a process. We're going to follow our process. We have to check things off.”

“In small town America, asking, putting your right foot forward, and showing them all your cards, being truthful and honest means something. That's what we did.”

Don’t forget to download my Free Workshop Quickstart Video Series, and if you like what you have heard please leave a review on iTunes.

Text the word MONEY to 408-500-1127 to get my free private money program and credibility kit for single family.