Ultimate Guide to Buying Apartment Buildings with Private Money

The Ultimate Guide to Buying Apartment Buildings With Private MoneyDear Friend,When I first suggest the idea of buying apartment buildings as a means of achieving financial freedom, most people give me a weird look.By the expressions on their faces, I know they don’t believe it’s possible.And I can almost always predict what they’ll say next. It will be something like…“You need hundreds of thousands of dollars to do that, right?” (You don’t, actually.)“But I don’t have any experience in real estate investing…” (Thankfully, you don’t need any.)In just a minute, I’ll explain why I believe apartment buildings are the single most powerful opportunity for achieving financial freedom in as few as 3 years.I’ll also explain how you can buy your first apartment building in 90 days or less — even if you have no money to invest and no experience in real estate investing.But first, let me tell you how I got into this “crazy” business in the first place…Hi, my name is Michael Blank. I make my living with apartment buildings and I teach others how to do the same.But I got into apartment building investing somewhat by accident. I did what everyone else did. I went to college, got a degree in Computer Science, then settled into a “safe and secure” job.I thought I had it all figured out. I thought I was on the path to financial success.Then, at age 35, I read the book Rich Dad, Poor Dad. My eyes were instantly opened. Suddenly I realized that the path I was on wasn’t safe or secure at all!That’s when I decided to start investing in real estate. But not apartment buildings. I automatically assumed apartment building investing was out of my reach. So I decided to start flipping single family houses instead.I began flipping houses in 2005, and I flipped 34 of them over the course of a few years. I made good money, too.But there was a problem, a BIG problem …Flipping houses was a TON of Work!I realized that if I wasn’t buying, fixing or selling a house, I wasn’t going to make money. There was never any residual income after selling a house. It felt like a full-time job, and I was burning out.I then thought about building up a portfolio of single family houses instead of flipping them. But then I discovered a second problem …I wasn’t going to be able to replace my income with single family rentals.One day I sat down at my kitchen counter and put pen to paper to try to figure out how many houses I would need to own to replace my income. My goal was $10,000 per month.I felt that if I bought right in an area about an hour from my house, I could get each rental to cash flow $200 per month (I mean REALLY cash flow, including repairs and vacancies!). At that rate, I would need at least 50 houses in my portfolio.50 rentals? How long would THAT take? (a long time!). How much work would that be? (a lot of work!)I became the accidental apartment building investorOne of my wholesalers contacted me about a small apartment building he had under contract. It was listed by one of his residential realtors, and he thought I should take a look at it. Which I did … begrudgingly.At the time, I didn’t know too much about apartment buildings but after looking into it further, I discovered that apartment buildings had these two major advantages over single family house investing:I could outsource the management. Most single family rental landlords manage their own property, which didn’t appeal to me at all. And of the few that had property managers, they told me it was expensive (10% of income typically) and the results were inconsistent because of the quality of the managers. On the other hand, professional property management was built into the apartment building investing model. This sounded a lot better!I could achieve my goals with just a handful of deals. If I needed 50 units in order to replace my income, I might be able to achieve that in just a handful of deals rather than doing 50 transactions. And once I bought a building, it would continue to pay me month after month. That’s exactly what I was looking for.4 Powerful Ways to Make Money With Apartment BuildingsI also learned that unlike with single family investing, there are four ways to make money with apartment buildings.Cash flow: this is the amount of money that is left after ALL expenses and mortgage payment.Appreciation: this is the difference between what you bought the property for and what you sell it for (minus expenses);Loan Reduction (aka “Amortization”): the amount by which your tenants paid down your mortgage balance; andSponsor Fees: if you’re going to raise money for the deal (which you should!), then you are entitled to certain fees for “syndicating” the deal.For example, you can pay yourself an acquisition fee when you close on the property (typically around 3% of the purchase price).You can also charge an “Asset Management Fee” (typically 1% of the money raised each year you own the building) and an “Asset Disposition Fee” (typically 1% of the sales price when you sell the building).Unlike any other investment in the world, apartment buildings have 4 profit centers.Astounding.Based on my own experience and observing other full-time (and independently wealthy) real estate investors, I came to the conclusion thatApartment building investing is the SINGLE BEST real estate strategy to get out of the rat race in the next 3-5 yearsDrew Kniffin did his first big deal, a 32-unit in the twin cities and quit his job. Don’t believe me?Then check out Drew Kniffin from Minneapolis-St. Paul, who bought a small 4-plex with a friend, and then they bought a 5-plex together with their property manager. That gave them the confidence to look for larger deals, and they pooled their resources, refinanced one of their previous properties, and closed on a 32-unit building in the Twin Cities.Two weeks later Drew quit his job.True story (you can check out his video below).How a Small Apartment Building Made Me $40,000 Per YearI’m going to use my first deal as an example to demonstrate to you WITH REAL NUMBERS how powerful apartment building investing can be.I use this particular case study because it’s the kind of FIRST deal that YOU can do ANYWHERE in the country. Even though this is a small deal (12 units), it still added $40K to my net worth EVERY year for FIVE years.And I didn’t use any of my own money.Let me show you exactly how this deal added $40K to my net worth every year for five years, and I hope in the process you’ll see that you, too, can do a deal like this.Here’s how I bought the property:Source: MLS (listed by residential broker)Purchase price: $530,000Renovations: $54,000 (or $4,500 per unit) – it needed a lot of renovation.Cash needed to close: $227,000 raised from 5 investors in return for a 50/50 split.Projected Returns: 15% per year for the investorsAcquisition Fee: $15,900 payable to me.After closing on the property, I renovated the exterior of the building and many of the units. This allowed me to slowly raise the rents, fill the vacancies, and evict non-paying tenants.This took a REALLY LONG TIME … like 3 years.After 5 years (as I write this), I have it under contract to sell for $850,000. Overall, this building made me a profit of $198,434 in 5 years – or about $40,000 per year.How is it possible to make $40K per year with such a small building and with none of my own money in the deal?Let me break it down for you by profit center:Cash flow over 5 years was a total of $130,545 (after all expenses and my fees). That’s about $181 per unit per month. Cash flow was tight the first couple of years, but it picked up in the last 3 years (as we raised the average rent from $595 to $825).The Appreciation was $146,500 after closing and sales costs, and NOT including loan repayment and sponsor fees.Loan Reduction: the loan principal was reduced by $48,265 in five years.The total profit from these 3 profit centers was $325,310. Dince I have a 50% share, my portion of those profits are $162,655.“What about the $15,900 acquisition fees that I pay myself at closing?”Oh, I almost forgot …I paid myself $15,900 at closing when I bought the building. I also charged an asset management fee of $2,275 per year (1% of money raised) and a 1% disposition fee of $8,500 when we sold the building.All told, my sponsor fees totaled $35,779, putting MY net profit at $198,434 – about $40,000 per year.It wasn’t rocket science. And you can do this too.What did I really do with this property?I found a property with some problems that I felt I could fix in 3-5 years. I renovated the property, increased the rents, and reduced the vacancy. It wasn’t rocket science. It required some knowledge, taking action, and hiring the right property management company to execute on the plan.If you feel a bit overwhelmed by the numbers, just take a deep breath.And make sure you don’t miss the main point here:Apartment buildings (even smaller ones) are the single best way to create passive income and long-term wealth so you can do whatever you want in 3-5 years.OK, I hear you saying “That’s great, Michael, but if I’m doing the math right, each unit cash flowed $181 per month and my share is half that. That’s only $1,087 in total cash flow per month.“How in the world is THAT going to let me retire in 3-5 years ?!?”That’s a good point. By itself, it won’t.But stick with me for just a bit longer and you’ll see how it will.Let me paint you a picture of how this first deal leads to your ultimate goal of retiring in 3-5 years.Let’s first understand how the 4 profit centers break down by unit and by month:While each unit produces $91 per month in passive income for you, it also produces $50 in fees and $135 of profit (appreciation + loan repayment) per unit per month.That means each unit is adding $276 to your net worth every month.So far so good, right?Now remember, this is only your first deal. And I can tell you from interviewing dozens of new and experienced multifamily investors. What they have proven time and again is this:It’s All About Your First Deal.Once you do your first deal, everything else happens much easier (and almost automatically).Jay Boyle took TWO years to his first deal, and it was “only” a duplex. But within a few weeks, he had a 36-unit under contract.Take Jay Boyle from New Jersey. It took him TWO YEARS to do his first duplex deal.Really?Yup, you heard right … two years.But then an interesting thing happened.By the time he closed on that duplex, he already had his second deal under contract: a 36-unit deal in Arizona (near where his parents live).Bruce from Dallas TX did his first deal – a monster 134 unit – after a year of hard work. And a couple of weeks later, he had a 110-unit under contract.Or check out Bruce in Texas: he did his first deal, a huge 134 unit deal, and it took him a whole year to get it under contract and several months to close. It was hard. He had to raise a ton of money, and he had all kinds of issues during the closing process.But you know what? Within two weeks of closing that deal, he had a 110-unit deal in Amarillo TX under contract and closed on it a couple of months later.Here’s what I observe over and over again with people I interview on my podcasts and other successful real estate investors, and here’s their advice for new investors:“Focus on your FIRST deal”.Once you close that first deal, you will close a 2nd and 3rd in rapid succession and “suddenly” control 100 units. All within 3-5 years.Here’s Why your First Deal is So ImportantWhen you do your first deal, even if it’s only a 12-unit deal, here’s what you have you didn’t have before when you got started:Track record and credibility;Investors (who invest more with you and refer you to other investors);Brokers feeding you (off-market) deals; andTeam on the ground, ready to go.Most likely, when you close on that first deal, you have several deals in the pipeline or under contract. And I can guarantee you that that 2nd deal is bigger than the first. If you start with a 12-unit deal, then your second deal is going to be 20-50 units. And the 3rd deal is going be even bigger.I want you to remember ONE THING from reading this:Focus on your FIRST deal (Nothing else matters).Forget everything else for the moment. Do whatever it takes to focus on that one deal. Once you do that one deal, everything else will get much easier and you will get your second and third shortly thereafter.Let me show you exactly how that small 12-unit deal from earlier will get you to from where you are right now to retirement in 3-5 years.If you remember, that 12-unit building generated $91 per unit in passive income for you every single month.What’s YOUR Rat Race Number? (And Why It’s Important to Know)Let me ask you a question: have you thought about your “rat race number”? The Rat Race Number is the amount of money you would need each month to cover to quit your job. Specifically, it’s the amount of passive income you would need to cover your most basic living expenses.If you could have your real estate investments produce THAT much passive income each month, you could quit your job, retire, or do whatever you wanted.That’s your Rat Race Number, and THAT’S what you’re seeking with real estate investing, am I right?How many units would you need to control to retire or quit your job?Continuing our example from earlier, let’s assume your Rat Race Number is $5,000 per month in passive income.Assuming each unit produces $91 in monthly income, that means you would need to control 55 units to quit your job.Here is how it’s likely to play out once you do your first 12-unit deal:Once you close on that deal, you’ll probably already have your second deal under contract, and it’ll probably be between 20 and 30 units (based on my experience).And you’ll probably do your 3rd deal several months after that, and that deal will be somewhere between 30 and 60 units.Let’s assume your first deal is a 12-unit, then a 20-unit and then a 30-unit deal. Here is the math:By this point you control 62 units (all with other people’s money BTW), and your passive income is $5,621 per month.But equally important is that your NET WORTH increases by $17,087 per month if you consider your fees, appreciation and amortization.Staggering.And it all started with that one small deal.Can you see it?I hope you can.But in the off-chance you can’t see yourself doing a 12-unit deal or you want results faster, then I have a Plan B for you, which is this:Want Results in 90 Days? Then Buy a Duplex to Get Into the GameThat’s right. You’re going to do what Jay Boyle did: buy a duplex as your first deal.Buying a duplex is MUCH easier and faster because:There’s more of them and you’re likely to find a good deal in your local market so you don’t have to invest out of town;They cash flow better per unit than a larger multifamily building; andYou need less cash, which means you might be able to do the deal without raising money, or you need to raise much less money.In other words, it takes much less time and money to buy a duplex.Let me share with you how a UPS driver bought two small 4-plexes and is ALMOST out of the rat race.How a UPS Driver is ALMOST out of the Rat Race with Two QuadsBrooks Everline, a truck driver from Falling Waters, WV bought a 4-plex and 5-unit with a combination of some savings and a hard-money lender. He’s now 50% towards his Rat Race number and thinks he’ll be able quit in the next 12 months.Brooks Everline is a UPS driver during the day and decided that he didn’t want to do that for the rest of his life, and was looking for a way outAfter exploring various options, he decided that multifamily investing would be the way to go, but with his limited resources, he knew he had to start small. So he decided to look for small apartment buildings.He educated himself and then started to look for deals. He finally purchased a vacant quad in Hagerstown MD with a hard-money loan, fixed it up a little and filled it with tenants. The building cash-flowed $800 per month. He refinanced it to repay the lender.Within 3 months, he closed on a second deal, a 5-unit building that now cash flows $1,000 per month.His Rat Race Number?$4,000.He’s about half way there.And he’s close to getting a 10-unit under contract.Brooks is very confident that he’ll be able to quit his job and become a full time investor within the next 12 months.Do you see how important that first deal is?Even if it’s “only” a duplex or quad.Focus on that FIRST deal. It changes everything.OK, if you’ve stuck with me this far, that you can probably see that apartment building investing is in fact the best way to achieve your financial goals (and retire) in the next 3-5 years.But you have a problem.“Yes, Michael, I hear you, but I don’t have the money, experience, or time!”And because of this, you might conclude that apartment building investing works for SOME people but not YOU, and you dismiss it as a viable strategy.And that’s a shame.Because as I will show you, they’re all lies.That’s right – lies.Don’t think you can get started with apartment building investing because you don’t have the money to invest?Don’t worry – I will teach you how to raise it from others. It’s not hard if you follow my step-by-step system. You will then realize (like me and many others) that your ability to scale your business is only limited by your ability to raise money. What an incredible AHA moment!Don’t think you have the experience and worried people won’t take you seriously?Don’t worry – I’ll teach you techniques so that people won’t know you’re a newbie. With a little bit of knowledge (and scripts!), people will treat you like an experienced investor.Not sure how to analyze deals and make offers?Don’t worry – within a month, you’ll be a master at analyzing deals and you’ll confidently make offers.Don’t think you have time? Or maybe you don’t want to wait forever to get results?Don’t worry – you can do this with a full-time job. And I’ll show you how to do your first deal in the NEXT 90 days.I want to SHIFT your mind from what you THINK you know about apartment building investing to what is actually POSSIBLE.I’ve found that when people they see the exact step-by-step BLUEPRINT to doing their first deal, they begin to visualize the process and to BELIEVE that they, too, can do their FIRST deal.Why I Do What I DoThere’s TWO reasons I’m writing to you today:I’ve experienced the transforming power of apartment buildings in myself and other financially-free people.I’m a teacher at heart, and I love teaching. Why keep a good thing to myself? I can’t. That’s why I want to help people achieve the same degree of financial freedom as I (and others) have. I know it works. It’s worked for me, it’s worked for others, and it can work for you too. I’m convinced of it.I feel like I have the experience and people have told me that I have the ability to teach a “difficult thing” like apartment building investing to others in an easy-to-understand and actionable way.My passion is helping you do your first deal. I feel like right now, that’s my calling in life.“I Figured it Out So You Don’t Have To”When I first got started with apartment building investing, I read books and attended (expensive) seminars but I still didn’t really know how to efficiently analyze deals (which is necessary to make offers with confidence).It took me 4 hours to analyze deals to answer the question “what is the most I can pay for this property and why?”. It took so long and was so overwhelming that I almost gave up.Today I can teach you how to do that in just 10 minutes. I now have the technique and tools to help you do that.Even more importantly, none of the books and seminars taught me how to raise money. I had no idea how to find the investors, what to say to them, how to structure the deals. And I had no clue about SEC regulations!Since then I’ve raised and deployed $1.6M for house flips, apartment buildings and even restaurants. I know how to raise money, and I can teach you how to do it, too.Today I have the process of raising money down to a step-by-step system. If you follow what I teach, you’ll not only raise all the money you need for your first deal, but you’ll have it raised BEFORE you even put you first deal under contract.I’ve wasted a bunch of time and money trying to figure it out so you don’t have to. I’ve made a TON of mistakes, so you don’t have to. I’ve figured out what works (and what doesn’t) so you can achieve your goals faster. I’ve developed a system that has worked for me and for many others.And now I am privileged to share that system with you.Introducing the “Ultimate Guide to Buying Apartment Buildings with Private Money”The “Ultimate Guide to Buying Apartment Buildings” is the BEST system on the planet to help you quit the rate race in 3-5 years.It teaches you everything you need to do your FIRST apartment building deal with a special focus on raising money.You’ll get instant access to my proven step by step process of buying apt buildings with other people’s money.You’ll become a master at analyzing deals so that you’re able to make more offers.Then your confidence and credibility will sky-rocket which means brokers will return your phone calls and investors will want to invest with you.And once that happens, you’ll be able to do your very FIRST deal …And when that happens, you’ll do your 2nd and 3rd deal in rapid succession … and then …You’ll be able to quit your job, retire, or do whatever you want to do.That’s my 3-5 year real estate retirement plan for you.And it all starts with your FIRST deal.That’s my passion … to help people like you do their first apartment building deal. I have the system and the tools to make you successful. What I teach works any where and any one can do it if you follow what I teach in my system.Here’s What You’ll GetComprehensive Online Course ($4,250 Value)Instant access to online course with 8 1/2 hours of HD video, downloadable audio and 185-page ebook.Access as many times as you like and in the format you prefer.Track your progress as you work through the course.Everything you need to do your FIRST apartment building deal with a special focus on raising money.It’s like having me in your living room for one-on-one coaching for 8 1/2 hours. At my hourly coaching rate that would cost you $4,250.Syndicated Deal Analyzer ($129 Value)Includes the most popular apartment analysis tool on the planet, the “Syndicated Deal Analyzer”.Learn my “10-Minute Offer” technique that lets you determine the most you can pay for a property in just 10 minutes.Create detailed 10-year projections, how to structure the deal with you investors, and how much you can pay yourself.Become a Deal Analysis MASTER so that you can make offers confidently.Retails for $129 if purchased separatelDocument Library ($1,500 Value)Contains sample contracts, templates, credibility kit, check lists and other documents referenced throughout the course.Raising Money: Credibility kit, sample bio, email template, sample deal package.Syndication: Sample PPM and Subscription, two Operating Agreement TemplatesMaking Offers: letter of intent, purchase contract, sample addenda.Due Diligence: Weekly check-list, Letter to Seller to Request Due Diligence Documents, sample property inspection report.Financing: Personal financial statement template, term sheet comparison worksheet, sample term sheet.Much more, and updated constantly!Video Case Studies ($500 Value)This bonus is designed to make you a Deal Analysis Master!  Each of the 6+ video case studies is about 45 minutes long, and I analyze a deal from start to finish, including several “what-if” scenarios. Watch me do it, then download the marketing package and do it yourself. You’ll be a Deal Analysis Master in a week, and that in turn will let you make more offers more confidently. This $500 package is normally only available to my Mastermind students but they’re yours – FOR FREE – if you purchase my system before this Sunday at midnight ESTHere’s What You’re Going to LearnEverything you need to your FIRST apartment building deal with other people’s money.Introduction: Using a detailed case study, why apartment buildings is the single best way to achieve your financial goals, replace the income of your J.O.B. and retire early.The Secret to Raising Money. Learn this technique for getting financial commitments long BEFORE you have your first deal under contract.Where to find the investors, what to say to them, and how to structure the deal and meet SEC regulations.Follow my step-by-step process and you’ll be able to raise as much money as you need for your first deal.Methodology for Finding the Best Area to InvestHow to find the right area in which to invest (even if it’s not in your back yard).Learn the # 1 Way to Find the Best Deals. Follow these steps to get a steady stream of GOOD deals.Sample emails, scripts and other tips to help you build trust with these professionals so that you’re taken seriously from the very first call.Other techniques to acquire deals, including sending letters to apartment owners.How to Build Your A-Team so that you’re ready when you have a deal under contract.Who you want on your team, how to find them, what to look for.Tricks and scripts to establish instant credibility with these professionals.How to Quickly and Accurately Analyze Deals.  Learn to answer the question “what is the most I can pay for this building and why?” within 10 minutes of receiving the marketing package.Within a couple of weeks you will become a master at analyzing deals so that you can make offers confidently.Make and Negotiate Offers that get Accepted.Negotiating tips to help get your offers accepted, whether you’re negotiating in person or through a broker.How and when to use the Letter of IntentCritical terms of the Purchase Agreement that will get you out of the deal if you don’t like it.Perform Due Diligence to Avoid Expensive Mistakes.Follow my step-by-step checklist of what to do each week after you have the property under contract.Don’t spend any money before you have to and learn from my mistakesHow to Get Financing Even if you Lack the Experience and Credit.How to work with multiple lenders and select the best one.How to create a  Loan Package that will get acceptedWhat to do if you don’t have the personal financials to qualify for the loan.Other “Creative” financing strategies like seller-financing, lease options and master leases.How to Get It Done (and cash your acquisition fee check)!What to do AFTER due diligence: Finalizing your loan, creating the proper entity and drafting the appropriate legal documents, managing your investors, and a break-down of expected closing costs.How to “Manage the Manager” to Drive Profits.How to find and select the best property manager, how to manage the manager, and when it may be time to replace the manager.What metrics to review how often to make sure the project is on track.7-different ways to increase income and value.How to Determine the Most Profitable Exit Strategy.What’s more profitable? Flip or hold long-term, or perhaps a cash-out refinance or 1031 Exchange?In short, this is the BEST system on the planet to teach you everything you need to do your FIRST apartment building deal with a special focus on raising moneyThe Real Cost of IndecisionLet’s say your Rat Race Number is $5,000 per month.That means every month you DON’T execute on a reliable real estate strategy, it’s not only costing you $5,000 per month, but you’ll be in the same exact position this time next year as you are right now.You’ll have the same J.O.B. next year that you have now;You can’t spend the time with your family that you promised your spouse you would;You can’t send your kids to the college of their dreams; orYour upcoming retirement will look just as uncertain as it does now.Make a new choice, and Pursue your New Outcome.Anyone can quit the rat race by using the Ultimate Guide system because it shows you exactly how you can do your FIRST deal. I’ve shown you proof the proof that it works for me, for others, and it will work for you too. You know that with the 30-day no way to lose money back guarantee, you are 100% protected and safe.You’re at the point of decision. You can either continue down the path of least resistance, the path you have already been traveling, and you can choose the road less traveled. The path of least resistance will probably result in you getting the same outcomes you’ve always received.But if you want something different to happen, if you want to change the direction of your finances, you’re going to have to do something different.Tony Robbins said that “In your moments of decision your destiny is shaped”. What will you decide to do right now?Click the button below, fill out the order form, and you’ll get immediate access to the system. It will contain everything you need to do your first deal.To your success …MichaelGet Ultimate Guide to Buying Apartment Buildings with Private Money – Anonymous, Only Price 84$Tag: Ultimate Guide to Buying Apartment Buildings with Private Money Review. Ultimate Guide to Buying Apartment Buildings with Private Money download. Ultimate Guide to Buying Apartment Buildings with Private Money discount.