Discover How You Can Invest In Apartment Buildings (Without Using ANY Of Your Own Money!) | Cory Holmes | Skillshare

Discover How You Can Invest In Apartment Buildings (Without Using ANY Of Your Own Money!)

Cory Holmes

Discover How You Can Invest In Apartment Buildings (Without Using ANY Of Your Own Money!)

Cory Holmes

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12 Lessons (1h 43m)
    • 1. Course Intro

      2:23
    • 2. Why wholesale apts

      7:56
    • 3. Locate sellers

      13:34
    • 4. Evaluating The Deal

      13:21
    • 5. Real estate math

      5:32
    • 6. Walking through the numbers

      9:36
    • 7. Negotiating Price

      14:30
    • 8. Submitoffers 1

      8:02
    • 9. Sending LOIs

      8:24
    • 10. Findingbuyers

      5:51
    • 11. Closing Day

      3:29
    • 12. Tools

      10:23
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About This Class

Imagine! Replacing your current salary on just ONE deal, owning your own lucrative real estate business, being your own boss, and investing in ,multi-family apartment buildings with No Money Down!

You Might Also Be Thinking....

Yes,  I understand that real estate is a highly lucrative market and most wealthy people own multi-family real estate. But how can someone like me, with no prior education in real estate, become a successful real estate investor?

What You'll Learn In This Course...

  •  Simplified Real Estate Math 
  •  Helps You Potentially Replace Your Yearly Salary On Just ONE DEAL
  •  How to Locate Smoking Apartment Building Deals
  •  How to Thoroughly Evaluate Apartment Deals 
  •  How To Submit Offers on Commercial Multi-Family Real Estate
  •  How to Find Investors to Fund Your Deals
  •  How To Own Apartment Building For Little to No Money Down
  •  How to Set Up Closings And GET PAID
  •  And So Much More...

P.S. - Every minute you wait to enroll in this Real Estate Investing Course is another minute continue to "just get by" and live a mediocre life instead of using this breakthrough course to quickly and easily Invest in Multi-Family Apartment Buildings with no money down and more!

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Cory Holmes

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Transcripts

1. Course Intro: hello and welcome to this course on investing in apartment buildings with little to no money down. I am quarry homes, your fellow real estate investor and your course instructor. I am based out of Kansas City, Kansas, where there are a lot of deals, by the way. And I specialize in all real estate, whole selling all real estate from single family to multi family apartment buildings and other commercial real estate, such as restaurants. So the concept of whole selling is basically to get control of, ah, property at a wholesale price, and you get that under contract. That property on the contract, whether the single family, multi family, other commercial real estate is all basically the same concept, is get the cart, the property under contract with the seller at a specific price, usually a low, low, low price. And then you assigned the contract to an end buyer. You can do this with all forms of real estate. This course is going to show you how to do it with multi family, larger apartment buildings. My mentors include Grant Cardone, So he's the CEO off Cardone Capital, where he owns a lot of the multi family real estate. And he's the owner of 10 X, the to next movement and 10 X is Ah is basically a community of people that really wants to learn and really want to grow their business, their life and their income. So he is the head of that movement. 10 x tired of flip man. He is my one of my personal mentors and real estate. And, you know, I call him when I have a deal. Just go through some of the numbers, go through a lot of, ah, the specifications of the deal just to see if it is a deal. Justo, get his take on it and he's always there in when I need it so tight of flip man flip man dot Net Again, we're gonna be talking about whole selling apartment buildings. This is the main concept of this course wholesaling and also a little bit about how toe own your apartment building with no money down. So without further ado, let's get started 2. Why wholesale apts: Why should you? Wholesale apartment buildings, man, uh is more money is more made in wholesaling single family houses. I tell you that the most you can make on a single family house if you're lucky, is about 50 grand. And this that's really, really rare for a single family building. But 50 grand will be nothing. Not even though that's nothing. That's a steal assignment fee for an apartment building because apartment buildings will work billions of dollars, millions of dollars, tens of millions of dollars. So you make more money on the assignment, so you can you can charge 50 grand. Foreigner. Simon, you can charge 100 grand for this. I'm a fee. Maybe 200 maybe 500 grand if department deal Is that sweet? That much? That much of a deal you can charge by from the grand on a on an assignment fee knowing that you're in your cut, the seller is getting ready to give it to his property. He has a her property and in buyer is gonna have a sweet deal. $500,000 is maybe nothing for on a $10 million property For an investor that knows they're going to raise. They're going to raise the rents, and they're going to increase the value of that $10 million property and making a $30 million property. So 500,000 you can have that and think of that like no money down, No credit check, No nothing. You just assigned the property just as you do as a whole. Selling and a single family home. You get a contract on the property, you'll sign that contract toe in buyer. And there you go, supplying the man so supplying the man. There's a lot of competition. There's a lot of single family houses out there, and everybody's looking to buy a house. Everybody's looking Teoh Wholesale flip houses as well. You talk. That's all you hear is. Are you here on the Internet? How to flip this house? Flip this house, Flip this whole sell this fixing flute and they're all talking about houses No one's talking about. The apartment buildings is real. Estate is all real estate, so you can fix and flip apartment buildings. You can wholesale apartment buildings. It's all real estate. If you confined in a new apartment building with someone is willing to sail. And you know that that apartment building it can increase in value. You can get a contract on that apartment building and a sign that contract to an end buyer Foreign Osama fee and you will have no competition because no one's thinking about whole selling apartment buildings is crazy is all real estate. But know what people were thinking? Small. But you want to play with the big boys, play in the big boys, play with this apartment game. Okay, apartment gang. You want to get in this apartment game again? Huge paydays. You're gonna freakin crush it on closing day because, like I said, 50 grand 100 grand deaths, nothing for an apartment building. So as in a Simon feet to make 100 grand on one feet. And all you did was get a contract on the property and sell that contract to an end buyer, which is a multi 1,000,000 There. They will just give you the 100 grand. Thank you for the deal. Take my 100 grand. Find me another property. I got more. I got more money for you. Find me a better deal. You have people like Grand Cardone. He's always looking for deals, man, He's always looking for deals. You showed the number. He talks about the internal. I was We will talk about in this course. You find him a deal. He's gladly gonna pay your money because he knows he can raise that value. You know he's gonna crush it. First of all, the the the apartment department building business is for the long haul. It's the long game and their investors, the millionaires and multimillionaires. They know they can hold this property, increase the value and keep it for a while as it increases in value and turn around and sail. Exit that deal after 5 10 years. So to give you 100 grand right now, they're going to probably make that back on the first year. So that's nothing. Huge payday, and you have the opportunity to own multi family. If it is, it is a good deal of it's small enough for you for your first deal, you could come in with no money down as we talked about, um, you get you could have the opportunity to do owner financing where the the seller of the property, the owner of the property currently would be your bank. So you come in and you can have some skin in the game. So you say the property is word, say, 500 k and the seller may want you to put $30,000 down just just as the down payment. And you can make payments over time to the seller. And the reason why they would want to do that is because they don't want, you know, a part. When you're dealing with these big apartment buildings, you don't have to go to the bank, Really, even even in in single family but really apartment buildings. You can kind of create your own little deal and be creative with the financing on these deals because the banks is just they just getting away, they just getting away. So owner financing is a great way to come in with no one in little to no money down, control the property and pay the pay. The personal paid a sailor off. I'm over time and and on the property outright over time. Master lease agreement is kind of the same thing. So you come in and you you're not the owner of the property, you're not you're the master lease. So you control the property at your imagine and property. Imagine everything about the property when So whenever whatever you do you paid you paid the seller awful. Whatever he wants every month. OK, but for whatever improvements, whatever value add you add to the property. All that profit goes to you after you pay the seller back to bang back or whatever the profit goes to you. And over time, once you sell that building, you pay off the seller and everything else is yours. So up until the end of the agreement and you don't own the property. So if anything goes wrong, the sailor, actually the owner of the current owner of the property can just take it back. You know, whatever is in your contract, you know, so you can control the property. You can. You can master deal, but you don't have toe outright on the deal right now. Master lease agreement And finally, is no tax implications for the current owner. So with that being said, some sellers, maybe one in the sail, but they may not be in position to take the tax hit once they sail their property so you could come in on the owner financing or a master lease agreement and pay the seller over time and get that seller ready to go for whatever. Whatever your contract says three years, five years, six years or whatever and then they'll pay that you sell the property, you buy the property, all right, and they can pay the taxes on that on their earnings then and not now. So that's another way that manipulate or be creative with the financing. If you want to own that property, if you work out something with cellar, where you can own that property over time. 3. Locate sellers: locating sailors of apartment buildings and the obvious way to locate a seller of an apartment building. It's true, and a broker a real estate broker. So you have these commercial real estate brokers and commercial property is anything for the residential size everything. Five Unison up. So that's apartment buildings. Five units. Enough is commercial, so it's gonna be is gonna be located on a site like loop net dot com, which is really popular for apartment buildings and other commercial buildings. Baluch net dot com has all of the brokers to so the brokers will list of properties and you contact the brokers you contact listing Asian and you inquire about the property. But that's a good way to, you know, get get out there and get in contact with different real estate agents, commercial real estate agents and brokers. But that's not the way you're gonna find the deals. You're gonna find the deals with the off market property, so you want a target off market properties. So if you see an apartment building or if you live in an apartment building right now that you know could possibly could use some improvements, you know the property the area is coming up is up and coming. Area is a decent area, but the property is not manage. Will. You can look on luke net dot com or its type in the address for the apartment complex and see this off market or market have his all market. You kind of don't want to test that deal because that means other people have access to that. So other people who have already looked at that deal and decided whether or not they want to buy it or not. So lubna dot com is kind of like Zillow. Okay, Zillow for the single family home. Everybody's look at that deal and they want They're going, they're going to look at it, and the real investor is not going to see the value added in those properties, so they're not going to touch it. Same with Luke Net. But you can use looking that to contact brokers, contact listing agents and say, Hey, this deal is amazing. I love this deal, but can you send me eight more deals like it? That's off market that you have right now and you can get in contact and you can build a report with the listing agent, but you want to target the off market properties. So to target the off market properties you wanna basically you type in the address. If you don't see anything or it is listed as off market, that's the property that you want to inquire about and dig deeper and do more due diligence on. And to do that, you want to go to direct mail. Direct mail is perfect, so you can get a list of properties in your area or in any area, be a list source, site like list source dot com or Melissa data or any type of listing service site that list properties list the owners list. Um, the equity. Everything about this. How many units? Everything about that property in that area can be found on that listing source. They're gonna pay some money forward. I know list or dot com A, I believe, is a minimum of $50 to build a list for that site. So it's gonna be you want to put it in the budget, maybe a budget of 100 or $200 a month, and you want to just scour the list and you want to just freakin male out any type of property, any type of male out letters to any property or any owners that you see that especially you want to target the out of towners, and they called the absentee owners. You can look and you see that the property is in, Let's say, ah, ST Louis, Missouri. But the owner of the property is in the Colorado, Denver, Colorado, so the owners addresses, says Denver, Colorado, and the properties in ST Louis, Missouri, deaths the property that you want to target, especially of his off market. Because that owner is an absentee owner, it's off market properties. There's two chicks so that owner is not emotionally tied to the property, so he may not know he or she may not know was going on in the area where there's new developments coming in that area night. So you want to jump on that deal before they actually before they know, and you can pretty much get a steal there if you can work out a deal there. So another listing sources. If you'll find all the listings of the property that you own, the property types that you're looking for land Glide on, my goddess, This is language is a game changer for me, at least for me. I mean, you land glide is an apple mobile app on android or iPhone. I tried it on both Ah ah, phone platforms and it works perfectly. If you download Lang glide, you get a seven day free trial and basically is like your map. So if you go to if you look at Google Maps is basically the same thing is laying like but language I as you're traveling along your maps, it has all the properties that you're passing by. So you get to look at you have a listing and actual picture of the street, that drone and all the property that you can see. All the property is around you. And if you hover over that property or particular property, you get to see the address of the property, the owner of the property and the address of the owner. So if you if you look at the owner of the property and you look at the addresses and you see the address of the property doesn't match it did the mailing address, then you know that's an absentee owner. So language is a game changer, and I use language I every day when I'm looking for deals. I'm looking for deals every day because you have to look for deals every day. This is not just, ah once a month, once a weekend are twice a week. No, you have to be looking for deals every day because other people looking for deals okay is not like I said before is not is now a lot of competition in this game, but you still have to look for deals every day. If you wanna increase your chances of finding one deal and increase the chances of finding multiple deals, language is a game changer. And once you have that language, once you have the mailing address for the for the only of the property, you're most likely going to see an LoC on that for multi family apartment buildings because they want to protect their assets. So they put it in ah LLC, which you know how to create an LLC now. So you're dealing with businesses, and most most apartment buildings are listed as an LLC, so these are separate businesses that owners Oh you own a business. An apartment building is a business you have to manage. You have to increase the value after maintenance you have Everything you have to do is the business. So you're dealing with business owners. So you want to operate and you know how to start your l l C. So once you sit in a handwritten letter, you're sending as your LLC. So they're LLC to their mailing address. And Houston, that what you call a L O I. A letter of intent to buy the property and we will cover letter and have intense later on in detail. And I will give you a sample that are intent where you're gonna put in an offer for that property and you're not most letter of intense put in one offer. But you're gonna wanted you where you can put in multiple offers on one letter of intent. So where you give the seller some options? Hey, this guy's really serious because he has Disney. Hey, this guys with serious because he has three different ways off of buying a property that he could that he could use here. She could you so and that gives them options and they'll most likely call you back. I've had mullet more people call me back or respond to my letters on apartment buildings and I've had on single family homes. And you gotta you gotta realize apartment buildings. You're not reaching out Teoh department owners for nothing. Okay? And they know that. Like if you're reaching out to the the owners of these apartment buildings, you have some money or you have access to some money. Are you and your real serious buyer or a real serious investor? So they will take you serious. And you are serious because you want to work out this deal with them and you're not reaching out to them for nothing. So that's to keep it. Keep that in mind. So you want a hand, write the letter. You find the information two million address from Lang Light our list source, and that's the direct mail property management companies. You can get the information from property management companies. Now. You want to be careful with this. Actually, they want to be careful because they may or may not give you the answers because they may look at you as a threat and the reason why is because when you're coming in and you want to know about the property, you want to see if you can buy the property. Oh, our whatever More nonsense, I tend the investors looking to buy property, seen something, something in the management. This is all for just something is wrong with the management of the property, and it could be managed better. And it's a threat to them because they could lose their contract, their management contract with the property, because if they sell the U, they don't know if you're gonna keep the same as me company, which could lose money for them, so they may or may not give you the answers. So be careful with that. You want to pay attention to your local market so again, you want to reach out to the owner and you wanna you want to take advantage of distress situation. So the stress situations, any type of this dress situation. So when she returned to the owner, you can get their motivation. Hey, I was actually planning on selling the probably Hey, I'm I'm not even in that city. I just have it, and I'm looking to offload my assets, you can find bacon properties. So vacant properties that are in decent areas are areas that you know is gonna explode in the next 2 to 3 years. If you find a vacant apartment building that you can get for cheap, maybe 100 or $200,000 and see if you can do a wholesale deal in an apartment building for maybe 300 or $400,000 you take it, take the assignment. Fear the in between female picked up 50 or 100 grand, you know, off of that property. Simple, easy. So and then research, research, research. You gotta research a market pitch. And so your market, um, you wanna find out who owns these properties and you want to reach out to him and and just do your research of your research. This is the land glide app that I was talking to you about. So if you can download, this is ipads are less version here, but they do have an equivalent version for the android software. So if you could, If you could go to your APP store or the Google Play store and typing Lang like you will just download it and you will see here, This is how it looks. You have a list of addresses and then on the streets. So if you're driving down the street, you'll see your Poinar, which means your car Are you going up the street? And if you hover over some of the apartments or something addresses, you can see the address and did you click on it? You'll see who owns the address, the actual address. And then if you scroll down, you can see the value of it, the market value of the building and the land. Also, there's a county link so you can look at the actually the actual county records for that property. A lot of times they don't have it listed here, but you can see that the property address doesn't match the address of the owner of the L L . C. So the address of the owner of the LoC may be located in the in the body off Um, this screen right here. So also to test out this app, do you have a seven day free trial? And after the seven days is $10 a month. So I is highly work it. I use it every day. I'm able to locate the sellers and their dress right from this app, and I can send out a male against another in L O I to the to the cellar and go from there. 4. Evaluating The Deal: Now we're starting to get into the fun stuff, evaluating the deal. So this is the beginning Stages on how you gonna get the check? Okay, so evaluating the deal, you want to start with the property class. So you wanna Once you look at the deal, you want to see what classes the property and is the A, B, D or C. So what a property is pretty much anything that is built in the last five years and the greatest neighborhoods. And you kind of want to stay away from that because there's really no value add to that property. So you you want me, you won't be able to find a deal there. A de property Do not touch. It is the worst of the worst is like a war zone area. There is a lot of things wrong with their property. Thomas In a bad neighborhood, anything is bad tenants, bad management, you know, it it is just is just the slums. So you want to stay away from D but be and and really C and C plus those or gold opportunities and you were really find deals with C Properties B and C properties but mainly see properties because see properties, would it be a C minus C or a C plus? Those properties have a lot of potential for value. And so it is, maybe be it may be in ah, and up and coming area and the property management is still not the par yet. Um, it may be some type of just little causing medic things going on with the property where you can come in and you could just add value, and investor will come in and and see the value out of that opportunity. So you want to target the B and mainly the sea property class targets and whole foods you want. Once you see a target and a whole full, especially a whole foods, then you know that those areas are pretty much good. If you, if you hear about a hopeful, is coming to your area and you know that there are property around that area that has a lot of value, add potential. You kind of want to reach out to those owners and see if there will make a deal with you, especially if their absentee owners, so they may not even know what's going on in the city. Targets. Targets are goal opportunities because of you. I didn't realize this until about Ah, a few months ago, actually. But if you look up the average income of target shoppers and the average age those target shoppers or that the age of millennials and they income is up to $60,000 or more so they can afford rains. Okay? And and And target? I did not realize that. So you want to pay attention to your market, pay attention to the market, research to market and look for targets. Literally. Look for targets, targets and whole foods rent, roll. So rent rolls, you're gonna want it. Once you evaluate the property, you're gonna run and reach out to the to the to the owner of the property. And you wanna get an idea of how many units? So you'll see this on the actual property brochure, and now I'll go over that later. Once we evaluate a real deal, you won't look at how many units how many bids and bass per unit. Ah, the link of the leases. So you'll get that from the owner. The vacancy rate, you will get that from the owner and the unit mix. So you if you'll find it on the website or on the the apartment brochure, so you want to get the rent rose. That's a very important for really doing your due diligence on the property. Financials, financials, this. I mean, that's as big you want. You want to get the financials right. You want to make sure you have the rial numbers, not the pro former. You're going to see a lot of pro former talk once you start dealing with multi family. Real estate in the pro former is basically the prediction on the numbers in the future. What the numbers would look like if the property was up to par are up to the cold or had all the value added to the property and the leases were released up and everything is going right. That's the pro form, so you don't want to go off of the pro former. And if you're you're dealing with other buyers or other investors and you you talk about pro former everyone look at you like you're crazy, the ones that are in the rial investors that it will pretty much by deal from you. So you want to go off the rial financials? The real finances. A year to date, which is basically the the trailing 12. So you want to go up the trailing 12 financials? I have that list. It, um the the last 2 to 3 years financial. So you want to see a trend? Now that trend is steadily declining. Then you kind of want to look at that property and see if you can negotiate or figure out what's going on. Why? Why are the numbers going down instead of growing up and value? You wanna look at the neighborhood, you want to just do your due diligence on this. The trailing 12 is you want to really look at the trailing 12 months. Okay, The trailing 12 months the last 12 months. So the property could be It could be fully occupied right now. But was it fully occupied a month ago, or was it fully occupied six months ago, or was it hasn't been fully occupied for the whole year now there's been fully occupied for the whole year. Then you kind of you're kind of good. You're good. The numbers of steady um, the trend is steady. But if there's all of a sudden you see the last quarter where the rents are the apartments , the units are least up. Then you kind of want to go back and look at that. Why? We're wise just the last quarter. Um, all these apartments are now being occupied when before the vacancy rate or the vacancy was 50% of the apartments or less. And usually the reason is they try to lower the rent so that they can get people in so that they could say that Yes, these apartments are truly occupied. They're they're 100% occupied and they start looking at they start putting the focus on the pro form based off the 100% occupancy. So you want to look at the trailing 12? You start asking for that. You'll see some sweat coming down. The owners are faces. And you they know that you know what you're doing. So you look at all that, and that's how you get to part of evaluating the deal. The next one. And I like this in green because this is B. This is really big net operating income. The net operating income that in Oi the end. Oh, I remember This is huge because it was basically the gross. They come minus the expenses. So all of the rents, all the laundry, everything that you collect from from tenants the income from tenants, that will be your gross. Okay, But you you know, you have to pay expenses. They're gonna be maintenance fees. They're gonna be taxes. They're gonna be, ah, lot of fees that you have to pay, which is it takes away from what you earn. So that's all your expenses. And when you rule of thumb, when you want to evaluate the deal, if you don't know that the in a why you want to basically take away the expenses and make it half of the gross. I noticed a lot, but you just want to If you want to be on the safe side, you want to take if the grosses $100,000 the expenses, you can kind of guess the expenses is going to be $50,000 and the, you know I will be $50,000. So to analyze, be Dana. Why is huge now that doesn't account for the mortgage. Did you have to pay for the apartment as well to the bank. So you have to pay. You still have to pay the bank after the m o. You know, I after the expenses. So but obviously, the more net that you accumulate over the year you wanna based ease numbers off of yearly yearly numbers. The better dirt, the opportunity is cap rates. Capri is gonna be a percentage. So you wanna If you're looking at Capri for whole selling apartments, you wanna be in between that. That's seven Teoh. Maybe the 12 or 13% cap operate and you kind of want to stay away from anything above 13% because anything about dark print 10% anything about 12% really is. Is those the property? So we go back to the property class. It's something really wrong with that property. Unless you have a really motivated seller, there's a lot that's probably wrong with the property or the surrounding areas of both. So the cabaret is gonna be super high and anything below seven Is those a property? So you see how it all correlates the A properties you won't. You're not gonna get as much return. So the cap rate in between the seven to maybe the 13% is golden is golden opportunity, especially around a 10%. If you could get around at 10 9 and 10% capri or maybe that maybe a percent, and then you can you can can't negotiate your deal to the end buyer to say, Hey, this is a 10% cabaret, you know, and kind of negotiate your deal with the cap rate and you know, I and in the current condition, the turn condition of the property Is that a condition or is a D condition? You know what, The A property class of A B, DNC A A, B, C and D. So you kind of look at the current condition. Gonna look at the neighborhood. You kind of look at the people, the management, everything about the condition of their prop takes comes into effect in your your evaluating the deal. So the property class you won't look at BSC properties. You want a toe keeping keeping an eye out for any targets in the area. Any hopefuls in the area and then you want to look at the rent rolls, you know, about the rent rolls. How many beds have any bass per unit? The length of leases, the vacancy rate, the unit mix, the financials, Look at the trailing, toil trailing. Toyota gives you a snapshot of what happened. What? It gives you a kind of a story. It tells the story of what's been going on in the last 12 months and in the last 32 to 3 years of financial also tells you a story. It gives you the rial data, the rial data. Where that data is, it turns into information that you can kind of build your story and kind of figure out was , Why are these numbers like this between a month to the month for 1/4 to quarter for you know, So you kind of can't do a little bit deeper do villages, which is never a bad thing. When you're dealing with apartment buildings when you're dealing with multimillion dollar businesses. Because, like I said in the previous module, an apartment building, you're gonna be dealing with LLC's, and that's a business. So it may be one owner, but the owner of the LoC is an LoC for reasons. So you're dealing with these $1,000,000 businesses. So you want to get the real numbers on these businesses before you invest in a business that's losing money with no value. Add. So you want to get that cap rate in a lie, and current condition will talk about, especially the cap rate in the July So and our next segments, we will go over like the simple real estate math is really simple is like third grade math to evaluating the deal. The financials of the deal. 5. Real estate math: So here we're gonna cover some simple real estate math. When I say simple, I mean addition, subtraction, multiplication and division. And that's it. That's it is all you need. Those third grace gills. Math skills is all you need. Toe evaluated view mathematically. So the first thing I'm going to cover and the first thing that you're going to see on ah, statement she on a financial sheet is the gross. How much is this thing Gross in per year? How much is this building grossing per year and the gross operating income? The G O. I. Is the sum of the rents. All the laundry fees if you if you have coin laundry, all the pet fees, the parking fees if you have ah, let's say you have covered parking or the sign parking lot of slots. Parking spaces, those all those income at add up to be your gross income. If you have a trash service, you at that on up, so you can see where there is some type of. If they don't have those specific fees, then there's a potential value app for that for their piece of real estate. But it's to some of everything. Everything that you charge is to some it's too gross operating income. The net operating income is Well, this is what people are really looking at. The net. How much my gonna nick? So after all the expenses and you see the expenses on the next line out after all the taxes , insurance, utilities, magma fees and maintenance and advertise me, you know, the ah, the cutting the grass, all that's the all the expenses fixing toilets after all the expenses. What am I gonna Nick? Um, I'm gonna be positive or not. Gonna be negative is gonna be positive. A nuts. Where does this deal make sense, or is it gonna be? You know, this deal doesn't make sense. We got to bring the price down a little bit. Okay, So you need to know your net operating income, and that is the gross operating income minus the operating expenses. Your vacancy rate. You want to pay attention to your vacancy rate because you want to see how many of these units or vacant. And that kind of tells the story about the property as well. About the management and about the property itself and the vacancy rate is the total number of vacant units divided by the total number of units. So you really want to see what the vacancy rate is? Debt service. So that service is basically your mortgage, What you owe the bank. This is what you owe the bank. So you're gonna pay the bank off every month. So when tenants pay you every month, you're gonna take your that money and pay the bank off what you owe the bank and your debt services. You took that times that by 12. And that is what you owe the bank. So this is not calculated in the in a y. So the in a Y and the debt service is different. So after your no, I after what you net from, if you go back after what you net from, you know you're operating expenses. After you, all the operating expenses have paid. You have your in a y, but then you have to steal, pay the bank, okay, you have to steal from the bank. And once you create a bank, then you have the money, which is yours, which is the annual cash flow. And it's the N o I. Minus the debt service. So you have your an ally and you take away the debt service which you owe the bank. And then you left over with their cash flow. Now, that number makes sense for you. That never makes sense for the investor. Then do you have a deal there? Your negative cash flowed in some things up. You gotta You gotta go back and re negotiate the terms or is just not a deal for you. The cash on cash return. This is really important to these Last two are really important. So the cash on casual turn is so you put it in your down payment and you talk about your annual cash flow. So whatever you put in, I say you have a $1,000,000 property and you put 200,000 there. So what is that return on the down payment I put on. So you take your annual cash flow divided by the down payment, and that's all the money that you have been is the down payment. So you wanna using other people's money, you know, for the rest of it, using the bank's money for the rest of it. But out of your money. Cash on cash return. How much is that? How much is that? In percentage. So you take the animal, Kaslow, you divided by the down payment and also capped rate capitalization rate. Going to hear both terms. And that's the cells of the inner. Why divided by sales price. So if you pay all cash for a $1,000,000 property, you pay, you put in all the $1,000,000. You didn't go to a bank. You put in all of your money. What's the return on that $1,000,000,000 that you put in? So what's the return on? If I pay all cash for the deal, what's the rate of return on that? So that's the Capri. 6. Walking through the numbers: So I just got a deal. E mailed me email to me about a few days ago. I can't show you everything about the deal, but I want to show you some of the the kind of, ah numbers that you will see as it relates to the real estate math that we just covered. This is usually how a deal will be structured for it and buyer to come in and look at all the numbers, you know, without actually doing his own due diligence on on his on his end, He is a her in the end buyer. But to give you a brief overview of what the deal looks like and they try to pack in, most people don't give you a lot of information. But the ones that do you want to use their good. They you know, you can trust him a little bit. Mawr, as far as the real estate broker is concerned, a lot of the when you're dealing with owners directly, they cannot. They kind of don't give you what you need. You have to keep asking them. Hey, I need I need the full financials. I need the last three years I need to teach. Well, the trailing 12 months. The T t m. So if you in this call t 12 so you'll see that in this little section right here. But some of the things that we can see you could see the number of units is 110 units is Ah , fairly lowers property. Um, you can see that is ah, the unit mix. So if you go, the unit mixes basically how maney one bear OEMs Teoh Have any two bedrooms? I mean, studios, whatever in the unit mix at the bottom left, you will see that there's 21 1 bed, one bath there, 70. Too bad one baths and there are 19 3 bed one best. That's the unit mix. So you now you're kind of seeing what these terms are, um, from your earlier modules. And if you go over to the right the right side of the screen, you can see the operating some of the operating data. So, you know, you could see the performer which we don't really wanna pay attention to. We want to see the current numbers. You see the gross you see the vacancy you see you know why you see out a boat in a Why? Because investors want to see the n o I. And they also want to see, uh, you know, after pain that the the bank off, how much they're gonna cash flow, you know? So if you see the net after after net cash flow after debt service, you can see that there, you'll see there's $138,000 mitt that per year, Um, after the debt service. So after the bank has been paid, you can see a little bit of the actual ah expenses the real estate taxes, the insurance, the electrical sewer, the trash, Barry's repairs, landscaping, payroll get paid. Er, your staff, Um and the property management company is can be part of payroll as well. Marketing advertising. You have to mortgage of property so people could come in living. But here's ah, here's a more detailed operating statement, So if you can see here, you see there's the income. There's the twit that the trailing 12 with a T 12. So all of the financials in the last 12 months how How do they look within the last year? Uh, the current numbers and the pro formal, which we do not care about. Some people like to throw that out there because it looks better. As you can see, he looks like you make more money, but it's just a prediction is not actual numbers. So if we go here, we see the growth potential rent or the gross rent. These are the actual numbers to teach. Well, okay, So 6 90 within the last 12 months. Okay. $690,000 that year. Gross. On this property. Total vacancy. Okay, look at this. 13.9% vacancy. Anything on there? About 90. Denying to occupancy rate. So is about 8% vacancy. Unless then, you may want to look at that. It may be a value that may be a property that you once a look at and see if you can improve and see if there's a deal there because people aren't living there. Okay, if he gets into the 80% occupancy and you know it is 112 unit building, 110 unit building. But still you still want to see why is that vacancy rate over 10%? So And you can see on the performer. You can see how they they marked it as Hey, if you get it, Teoh, 8.5%. You know you can, Ah, you'll bring in such no different amount of numbers. Okay, so are your numbers were improved. So that pro former is not What you really want to look at is nice toe. Have it. But you want to look at the actual t 12 and possibly the last three years of financial. So you you then they should if their business, they should have. And they are business because you're dealing with income producing assets, income producing businesses, and they should have all the financials from years past. So you got the vacancy rate. Um, so the effect of gross after everything that grows you, they say is ah, six. So six. Okay, 606 So, again, you can see all of the expenses here. Now, when you get into the different properties, they're going to show you like the rent rolls and different things like that. So if you can see that and we'll probably do an example of that in this course to showing the rent rolls so you can see how many How many? All the apartment, all the departments, whether each each unit is paying and how much they're paying. You know, if he's you know, is pain and how much their pain you can look at some of them and see Hey, this is unit span. The market is $600 a month and we have a couple units paying $40 a month. What's going on with that? You know, So if you can all that stuff factors into the deal and your big time investors, the people that you're gonna market your property to, we're gonna want to see that. Great. So I just want to get you a idea what some financial statements financial sheets looked like at a high level I was going to get. And that's right. The due diligence period is going to take a long time. So when you put it in your contract that you want a 45 or you want a 60 day due diligence period, this is why. Because you can go in and you can tell the story with the numbers, and you have to tell their story and get the numbers right, Because if someone investors in a and a bad investment, if they get putting a bad investment, they can lose money. I mean, is not their fault If they buy, I mean, it's not your fault if they buy it because they didn't do their due diligence. But you wanna presented in a way and help them understand that this is an income producing value at property. So you may want to jump on this deal and that you could see at the bottom. So after you get your income, your expenses and then the in a y at the very bottom. So after everything is paid your an oi, your net is 1 66 So this is Is this in the last year? So this this property is not looking really good right now, and you can see the pro former pro former. It says this is their thinking. It should be if everything is good and everything is 100% all the you know, everything is doing what it's supposed to do. The numbers wise and the property is up today, and current and property management is taking care of, you know their business. Then this property should bring in net 407,000. Okay, so the trailing 12 was saying at 1 66 So something's going on with that. Go ahead and, you know, study this chart and, you know, just get familiar with what kind of information you're gonna be receiving from brokers O R r property owners. And this is a kind of charge that you wanna put together to for your in buyers. Okay? Because you want late all the numbers out so they don't have to go in and do all the digging. They can go in and see. Hey, this is what the actual numbers is. You can have charts, graphs, all that to just your professional, your business. You have a business, and you want to show the business, you know, so that you want to represent their business the right way. So you wanna have documents, charts, spreadsheets, whatever. You need to get the numbers across that you can close this deal, get to build closed and get paid. Get in and get out 7. Negotiating Price: negotiating the price and the terms. And this is this is where you already found the seller or you talk to the selling. You talked to the broker. He gave you all the numbers that you need, all the paperwork that you need, the financials and you bet up deal. And now it's time for the negotiation. Now it's time to submit your offer and you'll see here I talk. You'll see later on the course that talk about so many multiple offers multiple types of offers in one offer letter. But let's let's talk about some of the ways that you can negotiate price and terms. And the first way is, of course, all cash. Now an all cash price. An all cash deal needs to come within all cast price. So if you're talking about a $1,000,000 property, they're gonna you know, they want all cash. They're gonna need a couple $100,000 off of that deal that they want to get in and get out and get all of the cash and and don't have to worry about payments or anything like that. So you can negotiate that in your Elo. I say, Hey, I know this is where 1.2 are. You want 1.2 for the deal, but are you willing to take all cast for 900 or 800? So you can add that in there? Add that in your hello I as the first as the first Ah, is the first offer. So again I talk about multiple offers in one. Hello, I let a letter of intent to buy the property so you can offer all cash. Or you can offer some type of owner financing. And the only financing is good because the owner or the seller, because it's called seller financing or owner financing, they are the bank. You don't have to worry about going to a bank. You can go through the cellar or the owner, and they will be the bank. You will be the owner of the property, but they will be the bank that your financing from so you usually have to have some skin in the game. You have to. When I say it's getting again, you may have to put a down payment down to let him know. Hey, you know, make it work. Being the bank for them so down payment will make its, you know, make them know that you're serious about it, and it will help them be helping be worked it for them. So an owner financing. So let's say if I if I go with two offers an all cash offer and the owner financing offer I may put on a $1.2 million property, it may put it all cash offer at way 700 k all cash and you can get out of the deal, get in and get out. And I'm a put a secondary offer his owner financing. Hey, I will give you what you want. 1.2, but I want to use us the bank Or is there a way that we could do owner financing, structure deal with this and I don't want to pay you everything up front. So in f the case, you know, sometimes that's the case. You know, um, a lot of these sellers that they don't wanna deal with the bank, they just want to get out of the property and And if they can collect the cheque steel and have someone else on the property and go through that and they'll do that down payments and loan. So you down payments and loans is basically you're going to a bank, you're going to a bank and you say, Hey, I want to purchase this $1 million property. Now they're going to ask you for a down payment of probably 20 years to 25 to maybe 30%. So you're gonna have to come up with that. You are the end buyer are gonna have to come up with that that 20 to 30% down. So on a 1,000,000 other property that will be $200,000 down, and then you'll you'll do the loan. After that, you'll finance the rest. You financed that 800,000 and that's all through a bank and the master lease agreement. Now, this is a great way. Four beginning beginner investors to go in and potentially own your own apartment building at the end of the terms with little to no money down. So you're you're the master lease. You're not only it right now, but you're in control of the property, so you may or may not have to put a down payment down, but you are in control the property. So the seller or the owner they still have control. I mean, they still have the ownership of the property. But if you guys construct the master lease agreement and you go in and you improve the property and you raise the rents and everything that you can do to add value to the property, which is which will, in turn at MAWR revenue and you'll get a larger out in a lie and a large cash flow, all that profit on the back end is yours. So he raised the rents, and you already came to a master lease agreement with the with the owner, and so they're going to get whatever you guys agree to. But if you raised rents and you add value or if you sell the property at the end of the time and it's for way more than with, the original owner wants of you. If the owner wants $1 million no, this problem can have a lot of value at in the area is coming up, and after three years, that property that one me another property is a three or four million l a problem, so you can go in and after the masterly after the lease is up, payoff the owner. Now you own that property and the profits that came with it. So you just in three years you just came up in my example three or $4 million. But you are already paying down the owner anyway or paying down the terms with messily. So you came up a lot A lot more because all the profits that you have accumulated over the years of raising the value in that property was all your So you came up big and you didn't . And remember, in my example, you didn't put any money down. And you can't. This is very, very like like this is really life. You can do this in real life if you go and you research master lease agreements for multi family apartments and you do all your research and you understand how real disease. So you as the beginning investor or an investor that may have had more single family homes , can go in and control ah, larger piece of real estate and take on all the profits. And at the end of the deal at the exit, you can go in and sell it. So if you sell the property or you could do a cash out refi so you can keep the property. If it's performing, will you can keep the probably property, But you can go to a bank and say, Hey, I have this piece of asset right here. This is just a property this this, uh, this apartment building and is worth they agree with you to say there's worth $3 million or $4 million. Um, but you have some. You have $3 million with the equity in it, so you can take that cash out and refire refund, Refund this the property And what can you do with an extra with a $4 million cash, $4 million in cash can get you a $20 million piece of real estate Now in five years, my example that the 3 to 4 year ah master lease agreement can turn you into can just change your network because your network, because you take that four million and you put it into a 20 million alas, and not your network this a lot higher. Now you see this game? It's a game It's a game that people play that we don't know about, that we have not known about until now. So if you can agree, toe have this master lease agreement and you don't own everything. But let's say this if anything was to go wrong with the within the master lease or anything , then the owner, which is the original seller they could just rip up the contract. And, you know, you guys can work out that at the you know when you guys worked it out. But you're not the owner of that piece of property yet until the end of the lease agreement . So this is a great again. This is a great way for beginning investors to potentially own real estate and come up, you know, in a short amount of time. So you just took your network from zero toe millions. And in 3 to 4 years, if you have the right property, think about that and let's talk about, you know, opportunities for master lease agreements. So this this master leases so important like this. This is such a ah, a way of constructing ah, real estate building. A lot of people are aren't doing they. First of all, they aren't trying to hold sell apartment buildings in the first place because they don't realize that it's all real estate. And all real estate can be worked out at any anyway, you know? So the opportunities for master lease agreements to look at Look up. The owner is tired of managing the property. So just like in a single family, you know, you got these these distress property or you got property, that the owner is just older and just tired of managing a property. And they just want toe still collect the check. But every month, but they don't want imagine they're tired of absentee owners. The owner lived in a state, so they're they Those owners may or may not know was going on in your area, so you can give when of new development in your area. And those owners do not know what is going on. So they are, and they aren't emotionally tied to the property. So hey, they can collect a check every month and they still own the property. And you know what? And regards to your you know, your master lease. Hey, they'll do that. They will do that and then cash out at the end of the lease. Ah, sick or personal situation. Some owners may be sick. You know where they have to go through. You know, some type of, you know, real personal situation, that they just don't want to manage the property anymore. It's just too much work. It's too much stress. And this is where you can come in as the beginning investor and potentially own this property with no money down. Look, look for property management issues so you can go in. Look at apartments dot com or any type of apartment website, or you can just go in what I do. I just walked the property and I see people outside or I don't see people outside. But if I cancel our size like, hey, I'm looking to move in the area and I see that these air nice apartments. Um, do you have any issues with the management? Are they okay? You know, And if they are looking like like this management sucks. I've been trying to get my toilet fixed for the past three months, or the pool it's contaminated. It's the summertime. I want you swim. That's the reason why I moved here because they have a soon pool and I can't even swim in the pool, which I'm paying rent on. So those all signs are popping property management issues that you can take advantage of because again, if they have property management issues, then the owner is not really watching was going on, Or is this a poor business person which could come in and you can take advantage of that? And the owner may want to sail the property right now they want to get out of the property , but they don't want to take that that tax heat. Okay, They don't want take that taxi or did not in position to take that text. Get right now so you can go in and structure a master master lease agreement with the owner and basically still owned the property. You can go in and, ah, improve and add value and come out on the come out, be on the back end, and the owner can have time to work out the tax issues. So this is these are all opportunities for master lease agreements to work and you as the beginning investor or to investor that does does does want to own a multi family piece of real estate but don't have the money right now. You can come in and try to structure that deal or if you, if you sell the contract or a signed your contract to another investor, they will say, Hey, this is this is really attractive Hide restructured his master lease agreement, you know, with no money down so you can assign that contract steel for a couple of $100,000 knowing that that the investor is gonna make so much money on the back end and the seller's gonna get what they want. And you could just get what you what you assign Richard Simon few years. So it's a win when we really research master lease agreements, and this is a great way to own multi family real estate with no money now. 8. Submitoffers 1: So you learn how to find the deal. You learn how to eat value with the deal. You found the owner or the owner representative of the property and you know, is a smoking deal. You know, you can make some money off of it. You notice is a lot of potential. There's a lot of potential in his deal for you and the end buyer. And you know, that is everything that you've been looking for. Everything that you've been taught up to this point. It has all of the signs and you want to go in and you want to tried to buy the property or tried to obtain the property control the deal. So this is where the letter of intent comes in The l O I. And basically the letter of intent is the letter of intent to buy the property. Okay. The letter of intent to buy the property. And this is your This is where you want to go. This is this is important. Very important. The letter of intent to buy the property is a bridge between your intent to buy the property and the purchase and sales contract which we will talk about later. So this letter of intent has very basic terms. So you have your name, your E l l c its name, their LLC's name because you're dealing with the business. You're dealing with the apartment cast going business, so it's gonna be under LLC. Most likely you're gonna have very basic terms, and I'm gonna so you away toe Teoh have multiple offers in one l o I. Now, a lot of people don't do it this way. They usually have one offer and one, you know, one offer a test to Anello. I said, hey, I want to buy your property at whatever cost, but I am going to teach you how to submit three, all for a simultaneously. Now you're gonna look at the seller's gonna look at you like, Hey, this may be somebody that's really, really interested and they're looking to obtain the property by any means. So that that three headed attack I'm telling you that at works you will get, I'm telling you, you will get a call back so fast you'll get an email so fast. Trust me on that three headed attack. It is very basic times. Hey, there's there I want to buy a property at this point, I want to do I want to honor financing. I want to do Master lease is the ways to do all that and position that in a letter of intent you and I wanna have 45 days of due diligence. Oh, and by the way, I can offer 50 grand after the due diligence period. That's another trick that you can do. You know, your l. A. Y. You could say I want to offer 45 grand after the due diligence period or whatever your costs after the due diligence period to let him know that you're serious. So the due diligence period can be these are apartment. These are businesses. So everyone knows that the due diligence is going to take about a month. About two months, maybe you in three months. So within that time frame, you're doing your due diligence. You run the numbers and you are marketing the property. If you got a letter of intent signed back from the seller, you have marketing the property at that point in time that that little down payment, a little escrow, that earnest money, it's not gonna be paid by you nine times out of 10 is a high price property. So the earnest money on that is gonna be what you think is pretty high. 2030 maybe 40 maybe $50,000 but on a $1,000,000 property to put $50,000 up If you really want the deal will be nothing for the end buyer and you're doing it after the due diligence period. So that is nothing. Foreign buyer for Millionaire who wants to purchase a cast loin property or our property work with potential so very basic terms. And then you get the seller to understand what you want to do to deal so you're you'll have what you want to do. Deal. Hey, I want to offer it this much. I went on the finance. I want I want to run the property. I want a master lease it. You know, you get the seller to understand I want to do this thing with the property or you interested And the main advantages is you can make a lot of offers and you should make a lot of offers because yellow eyes are free, so you should be making a lot of offers. If you want to get a deal and remember, one deal could change your whole year, probably in your whole life. If you get a good deal like that and you can definitely you can definitely replace your yearly income on these apartment deals because again, these air high price deals potentially. These are not little houses, single family houses when you make 5000 1000, 10,000 maybe even $50,000 on a deal. You can make six figures on a deal very easily, with no cash or credit as we discussed before. So L a wise air free and they're free and they're non legally binding. So you're not legally binding to the contract and is not a contract. Is this a letter of intent to buy the property? Just a little letter. Hey, my company was to buy your company for this price or in these terms, you want to make a deal? Okay, sign right here, does it and again. So these letter of intensive free, you should submit offers every day. You should be looking at deals every day. You should be shopping deals every day. If you want to close the deal. You can't go out here and look at a deal week. You should be shopping real estate every day. Rain, sleet, snow, heat wave. Yes, if you want to close a deal. So my challenge to you is to sit now 15 to 20 elo ise per week per week. So you should be looking about three deals a day. I don't care of you. You got kids you got, you got You're sick. I don't care if you got school. You gotta work. You got two jobs. You got three jobs if you want to make some money. And if you want to get started in the real estate game, if you want to jump start in this apartment business and say, forget the single family house flipping household selling, making 1000 making $10,000 you want to make 50. 100? 200 the half a 1,000,000 on one deal. You should be shopping real estate every single day. So my challenge is to you is to 15 to 20 deals per week. Just look at 15 to 20 deals per week and I'm going to show you here on this link. How to submit an offer, a letter of intent with three offers up to three offers or multiple offers. I'm only if I have two or three offers on history, so here. 9. Sending LOIs: so I wanted to discuss with you a sample letter of intent. A let l. O I have feel that was simple information. And I want to show you basically, how was constructed So in L o I well at the top will have a date, of course, And then the seller. So whatever L l c this is Ah, some LLC in ST Louis. Um, your business l l c the one that you created before you started the course, Or you will create before you start sending out a letter of intense any brokers, this part of the deal and the address of the property. Okay. And then you go scroll down and you can basically copy a lot of this. Where? Forward. So this non binding letter. So it says that is is nonbinding. So when they sign it when you sign it, it is not a legally binding letter, but it is. Is your part is your intent to buy the property so you could sit as many of these outs? I actually challenge you to send out about 20 of them per week, and you need to look at deals every day and send out offers on as many deals as possible. So it is non binding. Letter of intent represents the purchaser intent to purchase the property above, which is so you're the purchaser, including the land and improvements of the you know, the following terms. So your price, this is your offer. So I'm going to show you Ah, in a minute. How to structure to three? Whatever Multiple offers on one l. A y. Also this financing You can talk about that in your offer so we can skip that. The earnest money is is big here. So look at this. Let's panted to the wording here. So this is a sample. You can put X amount of dollars to be deposited into an escrow account by the purchaser within three days after the execution of a formal purchasing sales. So after that, big word is after. So when she find a buyer that buyer can fund that earned this money and it shouldn't be an issue on how much I earn his money. It is if it's a deal there. So keyword is after to due diligence, period purchaser show half dirty and usually is probably more than 30 days. Maybe 45 to 60 days. Business counter days, calendar days, due diligence, period from the time of the execution. Ah, formal purchase and sales agreement and due diligence acceptable to purchaser and his or her sole and absolute discretion. So the main points here is to you need to allow a lot for at least 45 days due diligence, period. Because due diligence on a multi fan apartment deal is is very long. Is very t is. There's a lot of hidden cause. There's a lot of hitting. Financial is a lot of hidden things that you need toe uncover before going through deal and closing shell occurs 60 days after completion of the due diligence period. You can you can teeter with that as well. Closing days, additional terms. You can add any additional terms there if you want. Ah, you can talk about the agents and again, this is important. This letter of intent is not intended to create a binding agreement on the seller to sail or the buyer to buy. So it's nine binding, so you could send us and many of these out as possible. I recommend sending five a day 33 to 5 a day. So you should be looking at deals every day, and then each person signs it. Well, you're send it and be a email to the LLC or via mail. So let me show you one of my yellow eyes. So I was trying to get in contact with this owner. Ah, with my LoC and I was trying to go through, Not the not their broker. I don't even know where broker was. But I found the owners information via that land glide at on this property. So it was a 12 unit building and, ah, low bottom. I did the Donald Trump Donald Trump offered down Trump lowball know if you guys read the art of the deal by Donald Trump, but I think it's a good read. You know, you could think whatever you think about Trump, but the art of the deal is a good re for real estate investors. So again, this is my This is my really l a wide I sent out to this This Ah, that company. The non binding letter so boated, nonbinding. And then I offered 300 k cash lowballed, um and again thought with the owner financing. 3 50 buyer was submit a $50,000 down payment with the balloon payment of 3 300 K in 18 months within 16 month extension if needed for an additional $50,000. So if I need a six month extension, I would I would have to submit 50,000 more dollars. So and this is closed 30 days after the due diligence period. Earnest money. So I just saw. I just want to see what they would take its for us. Earn his money. They didn't. Usually they will reply with something, but I just put $5000 to deposit it into, you know, escrow one day after the 45 day due diligence period, do you were after? So that's how you get out of paying. That's how you get out investing. Ah, any of your own money into the deal and you can get away with just by that after keyword away with whole selling and a large apartment unit, a large apartment building for no money because the the actual end buyer will pay that, too, that earnest money and due diligence periods 45 business calendar days do does this period . So, actually, and in the closing shell occurs 60 days after due diligence period, you can put whatever turns you want in the deal. I should have put 30 days right here, maybe 45 days. But because I've already done my due diligence, I didn't really I think it was a typo when I sit it out. So double check the letters. Additional terms Purchaser will submit an additional $5000 earned his money into escrow for 1 60 day extension. So that's additional terms. You know they can agree, and I agree. That's why it is a free nonbinding what you know, Waits, who send out offers on large apartment buildings. And then I talk about the purchase contract and the real estate properties. Real estate. Property taxes shall be pro graded at closing, and buyers should have 10 business days from mutual extension off this letter of intent agreement to purchase to submit a purchase and sale agreement. So once both parties signed is L O I. Me, as the buyer submitted purchase and sale agreement so that we can get this property locked up on a contract and then I go into my spiel about how this letter of intent is non binding and this letter of intent is open for the acceptance of whatever date you put right there. So give it about 14. Get about 14 to 20 days business days. And you put that date right here. So and then you send it off, you send it albeit a male or via email. And that is your non mining letter of intent to buy the property and tired up On the contrary. 10. Findingbuyers: So you got the contract on the property and you got the cell to agree with your terms and you believe was a great deal. Now it's time the market, your property and try to find a buyer. So the beauty of multi family real estate is that your you can market your property to people all over the world. When you think about it, you see that these Chinese, Chinese, um, the Africans, everybody is coming to over to America or over to wherever toe by up and calm producing assets. And if it's a deal, they will give you cash because these people have money. These rich billionaires, sometimes billionaires. If it's a great deal in the area that they could just park their money into and they find a property that it can park their money into, they will pay cash knowing that they're going to make that money right back in no time. You know so and they plan to hold the property for a long amount of time. Probably 10 years plus, so you can market your property to people all over the world all over the world. So you want Oh, actually, you want to put your property out there because they can't. People don't know. You people don't know what you have the offer they can't buy from you where they can do business with you. So, you know, if they don't know you, they can't flow You. Okay, so you want that check? You want that that big check with no money down. So you need to find a buyer, a sap. So you need to go market your property that you have on the contract. And the first thing to do is everybody knows. Luke. Net loop net dot com is where you find multi family deals. Okay, so people are looking at looking at all the time we talked about that before. Of course, we want to target the off market properties, but weaken theirs deals on looking that people are buying those deals from Luepnitz from the information they get up movement. So you want to put that out there? You want to put your property out their own look next? Um, brokers, other other commercial brokers. You want to let them know that Hey, I have a property that I want listed in this area. These returns this is the numbers. Can you market the property for Luke? Net and brokers are your big your big marketing platform where a lot of people eat a lot of eyes on your property online classified as like crazy, so you'll probably find a lot of local people. Um, that may look at the Craigslist, so I mean, I wouldn't carried out because there's another flow of, ah, eyes that could be looking at your property. I wouldn't count anything out so and it's free. So just put it out there on correct list and you make the call may get someone interested, well willing and ready to buy right now. Other wholesalers Now, you may not find a lot of whole sodas in the apartment game right now. Uh, hopefully when I take this course, they'll be a lot more because there's apartment building. This apartment game is is untapped market for holes. Oh, so you can possibly do a deal with other wholesalers, and if they can find a buyer from you, they can find a buyer for you. You know, you could work out some terms there, lengthen, lengthen, has money, lengthen his money because you can find so many people. I mean, there's so many different owners of big businesses. Um, a lot of just a lot of a lot of people, and there's a lot of welcome length in. So I would definitely target Linkin. Just put in real estate investors in the search, bore and see what comes up, and you just can't go in there. You just cinema D'Amore Ah, connect or whatever on lengthen and just tell him what you have. Hey, I'm on a real estate investor. I have property on the contract for this amount dollars Whose numbers? Let him let him know all the number. They'll do a quick blue math of very and that the numbers are right. And you never know you could find somebody to buy your deal from anywhere in the world from lengthy and of course, social media. Market yourself with social media. I don't know how many qualified buyers that you will find a social media, but again, it's a free platform market your property and you never know. So I wouldn't count out any of these things on the list. Any of these media's medium on the list because you want to get your You want to get your property after. If they don't know you, they can't do business with you. They don't know you. They can't flow you. So you want that float? Want that money? You want that check at the end of the deal, So market your properties so you can find the buyers to qualified buyers and let's get these deals long. 11. Closing Day: So you finally made it to the homestretch. You have got a property on the contract. You have found a buyer for that. The property that you have on the contract. So both contracts have been signed, and now it's time to set up the clothes. And you're usually the the actual buyer will use their title company. Or they're closing attorneys, um, to get this transaction done because they have all the money. So they should be able to or they are gonna be able to choose with title company they want to use. But if they don't And if you have one, go ahead and use yours. And that way you can. You already have a relationship with your title company, and you can kind of control it a little bit better. You can kind of control the process a little bit better. Even that's the whole cellar. Because first of all, the seller and the buyer ah, they made may or may not be in the in town or in the same room or whatever. They will have representatives attorneys. Ah, uh, people from you know their side to represent the them in the closing and make sure everything goes right. Um, legally. Okay, So you want to make sure you want to be there? Of course. Because you want to be able to If if anything goes wrong with the title, if they need a simple document printed out, you don't want to leave it up into the seller or the buyer. Teoh, get those things done because they may not be as motivated as you to go ahead and get this deal close A set. So you you want to be there to take control of the deal if possible, And make sure this deal comes away cleanly legally and everybody gets paid and you walk away with your Chek. Um, you're gonna be dealing with loc easy. Of course, you already know that you have your own LoC, and you're gonna be dealing with other, um, hello season and this transaction as well. So that's another process that you have tow. Worry about because you know this is their business. This is your business, so things don't go right. Then that could affect that. So just keep that in my and then for the closing details document the closing details document is just basically a document saying who is going to get paid? What part is gonna get paid and how much they're gonna get paid where the transaction will be taking place. What title company? What? Who's the attorneys involved? Anything that has to do with their transaction will be in the closing details document. And you guys will create that upon closing day or close to closing day before closing date to let everybody know what's going on and how it was gonna be hell. So again, you have to be there. You have to make sure everything goes right with this day because this is when you get paid . This is when you know you can walk away with your check or get the wire transfer to your account. And keep in mind these air Laura's transfers. So you really want to get this done? So you want to make sure everything goes right on this day and, yeah, good luck 12. Tools: so we made it to the end of this course on how to invest in multi family apartment buildings with little to no money down. We also talked about how to possibly own an apartment building over time through something called a master lease agreement. So this is a great That was a great way to possibly own apartment building with really nothing on the line, really, you know. So here are the tools and resource is that I personally use to find deals to find tracked down owners, too tracked down people who control the property or are represent the property like the brokers and everything. So if I need to track down an owner of a Pacific specific address, whether it be single family and multi family, whatever I use first of all I ago and I type the address into language the app that we talked about earlier in the course, and if that one is giving me some information, that's fine. But if I can't find that information, I go to N E T. R. Online. So and that's has all the public record. So a lot of times you're going to get when you cold call people, or when you get people's information, they will call you back and ask you, How did you get my number? And the first thing And the only thing you should say is, well, it's public record. Everything's online. That kills out right there. So the only thing should say is this public record And here are the public records, so public records dot any tr online dot com So you can really click on any of the states I'm in Kansas. Um, I traveled to Missouri a lot, huh? ST Louis, Missouri or Kansas City, Missouri. A lot. And I'm in cancer. The Kansas. So I make click on Kansas and here are the counties. All of the counties are listed out for you. So let's say I want to click on why Wyandotte County. So you have the county sites and you can see what the property has been appraised for, and everything you need for the property is right here. So you go in and you can click on Goto data online and gives you a bunch of information about the real estate, commercial real estate, um, land, residential real estate, and you can go in and you can type in the owner's name if you find the owner's name or you can type in the address search. And that way you can type in the street number. You're a street name, and really, that's it. You can just click search, and a lot of information will pop up. So the owner name whether they owe taxes where they, you know they are there on old taxes. But you know, whether they paid their taxes, whatever property it is, and so on and so on. So that is a great tool to find to use for any any ah state in the United States of America . So the next one is list source dot com. So list source. I use list source. Basically, I type in the criteria that I want, and I really, I never down to the county the type of property I want And what are the the specifications for that piece of property. So if I go in and I I've used my email, so I'm logging in right now into the online database, I get a dashboard and you can see that I am, Let's say I've been looking for Kansas city apartments, and I'm looking for ST Louis apartments. So let's click on what I've last search for the list of Search for. It gave me a list of 3300 and 33 apartments to go and send yellow eyes, too. So I go in here and click on County, and it's why click on the criteria and I want to search by Zip code. Or you can search by any any any one of the zip code counties, street name wherever and by certified County I want to go into, in this case, Missouri and available County ST Louis City. So I go in. I add that you can go into other tabs over here so you can say mortgage tab the property tab. So the property tab is, you know, the type of information that you're looking for. So I was looking for a residential multi family residential multi family apartments, so you can also go into, uh, foreclosures. You can see of their bank owned properties there, auction properties, the demographics and several other options that you can go in. You can search for Onley absentee owned properties, and you see here under the options tab. I only have absentee on properly selected because that's the market that I want to target those out of state or este owners. But they don't live at the property, and I go in here and I click everything that that I want. And then when you're done, you click on purchase list and then you build out a list and you will get a spreadsheet off the name of the owner, the owner's name, the property address, the mailing address and all the other criteria that you select it when you were when you were going through your your search. And this is a great way to find that list. Ah, build a list of perspective sellers that you that you want to target and also I want to take. I wantedto tell you that you must spend a minimum of 50 bucks to create your list on this site. So that's there's one thing I want to tell you and then use PayPal when you check out as well. So those air did the main tips for this site. Another site. When I know that I have a name or I haven't address or I have a phone number. I can click on fast people search dot com and I can really drill down. If I want a cold call someone I can cold call someone if I want to touch the name I don't know. LeBron James, LeBron James and the Brian BJ's is not deceased. LeBron D. James But LeBron are James. I don't know. Ely moved to L. A. He lives in California. I don't know if or if this is the rial LeBron James, the basketball player, but his name popped up. And if I click on free details, maybe his address, that may not be, but I don't know. So I'm not telling you to go search for LeBron James name, but that I mean, I'm sure his 1,000,000 probably starts with the are so that checks out. So don't go stalking LeBron. You gonna contact me and try to sue me? I don't have any money, LeBron. So if you if you're actually looking at this course LeBron James Ah, sorry. And another and another site is Look, net, we already covered loop net. And the reason why I say Luke net is because you don't you want to target off market properties. We already know that. But Luke Net has the information you need as far as the brokers for the property that you want to target so you can contact our broken and say, Hey, that's a nice piece of property. As you have Mr there. I'm a real estate investor. Um, I'm looking for properly like this. Do you have these type of properties but are off market? And you can kind of get that that information from a broker that may or may not give you the information, But that's a great way to because I'm sure they get deals all the time coming through their pipeline, but they just haven't posted yet on loop that dot com, and you want to target properties that are not posted on looking at dot com. There are off market properties, and a lot of brokers have that. Also, when you get something on the contract, you can market your property via the brokers On loop that dot com. We also use Google maps for just type in the address and seeing the surroundings of these properties and seeing this ah area that you may or may not want to invest in or you may and may not feel like you can get a deal out of, or anyone else can get a deal or once investing So Google Maps is a great way to do that. And then network networking events for a specifically real estate networking events. Because there you're gonna find contractors, other real estate investors, other wholesalers, Um, just a bunch of people title companies. Um, every every everything that you need for a real estate transaction to go through and to go through Will, um, you will find at real estate investment, networking events or meet ups. So these are the top tools that I use personally to go find deals and get the right people involved to help me work to do so. I hope these are very hope. This course has been very informative to you, and I would like to thank you for viewing