MIH Mastermind Social Media Workout Challenge #6
My first 4 posts covered the first 2.5 years of my real estate investing journey where I was trying to do it all by myself. This post will cover the most recent 6-9 months.
For most of the first 2.5 years it often felt like I was spinning my wheels, I made some progress toward buying an apartment but was having a hard time managing all aspects of the business, family and W-2.
After my failure in the first accepted offer I realized I needed to find someone else who shared the same goals and mindset. Someone who could share in the duties and I could trust. I needed a partner. The timing of this realization was impeccable because I found someone else who was in a similar situation. We had chatted in the past but hadn't started looking at deals together. In 2021 this changed.
The first deal we looked at together was an 88-unit property in our local market. It was awesome being able to look at the deal with someone rather than as a one-man-show. We were able to use each other as sounding boards for the business plan and the management and run countless "what-ifs" as we underwrote and dug into the details. We were excited with the possibilities in the deal and our underwriting was solid, we would be able to syndicate the deal and provide really good returns to our investors.
We submitted our offer.
Shortly thereafter, the broker called back. Best and final!
My partner had previously been in direct contact with the owner so we were able to get some inside info on what it would take in an offer to get our offer accepted so we made a few tweaks to our initial LOI and sent an updated offer to the broker.
Now the waiting game.
And we waited…
And we waited. This felt like it took forever. Was it a good thing? Was it a bad thing? Did the seller decide to go with another offer and the broker just not let us know? The suspense was excruciating.
It took about 2 weeks longer than we expected. We didn’t get the deal but we were very close.
This was a great first deal and was fuel to keep going.
Together we looked at an analyzed many deals in the next couple month until my partner called me on a new build in progress that looked interesting and we met at the build site to take a look.
After walking the building we had some great conversations, does this fit into our criteria, how do the expenses look, what is the potential income. There was a lot of research that needed to be done and we dove headfirst into it.
We submitted our offer at the end of May and within minutes it was accepted!
Now the real work begins in getting this deal, our first accepted offer, under contract and across the closing table.
The details of the deal will need to be a separate post because we haven't closed quite yet and there are many twists and turns so stay tuned for that one.
In less than 3 months after partnering with someone else I made more progress toward my goals than I had in the previous 2.5 years combined.
Perhaps I should have looked for a partner before but I don't think I was ready. It took a huge failure on my part for me to realize that I needed help, I couldn't do this alone.
For most people, partnerships are a necessity, they help you stay accountable and they help you to be able to talk through deals and issues as they crop up. When doing it alone you are only accountable to yourself. When partnering, you are now accountable to a team. Nobody wants to let someone else down but we routinely can let ourselves down. How many times do people commit to losing weight only to gain more because they didn't care about being accountable to themselves.