Buying Multifamily Properties and Overcoming Your Fears

It is our job as entrepreneurs who are raising private money to learn how to direct energy, other people’s energy, into vehicles that produce more income for us and for them. It is all about managing the energy. You have a choice when it comes to raising private money for real estate: you can put your energy and time into a deal or you can put in your money into a deal. The goal is to put in your energy with someone else’s money. But how do you do that if you are paralyzed by fear?

The number one fear of real estate entrepreneurs is that they can not do a multifamily deal because they do not have any cash or credit. The other fear is that they are going to run out of money or not have enough money to close the deals. No matter where you look, it always comes back to money. You have to remove that fear.

In order to remove that fear, you need to empower yourself with terminology that has powerful connotations. Begin by referring to yourself as a real estate entrepreneur instead of a real estate investor. An investor is someone that brings money to the deal.

If being an investor means you have money and you really do not, then subconsciously your mind says “Who are you kidding, you’re not a real estate investor! You don’t have any money and you don’t know what you are doing.” That little voice strips you of your self-confidence and you are already out of the game. It is a natural defense mechanism because you are out of your comfort zone.

Entrepreneurs, on the other hand, bring deals to the money. They use other people’s time, talent and resources to achieve their vision. You are the dealmaker. If you declare yourself an entrepreneur from the outset, everybody understands your role; there is no confusion. You are not expected to have any money. You are expected to bring all of the pieces together and make the deal happen.

If you remember that mindset is one of the most powerful tools you have, then you will be able to overcome your fears and insecurities. The words that we use to describe and portray ourselves are very powerful and can either lift us up or limit us. In the world of multifamily investing, the words you choose can make or break the deal.

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Lance Edwards is living proof of his mantra that you don’t have to “graduate” from single family to multifamily – you can start with multifamily; using none of your own money and not dealing with tenants and toilets. For FREE information, visit http://www.ApartmentWealthMachine.com.

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Marketing Your Multifamily Deals for Free!

You do not have to spend a gold mine on your marketing strategies for finding investors for your multifamily deals. In fact, there are some very effective ways to market your multifamily deals and not spend a dime doing it. There are four very effective and, better yet, free means of marketing your multifamily deals. These methods employ the use of referrals, charity organizations, networking and keeping an eye on your competition.

The most effective marketing strategy you have available to you is your referrals. This strategy that is used throughout the business world is also applicable to what you are doing. Referrals are absolutely fabulous at bringing in new investors.

Why are referrals so effective? Simple. People trust information that is given to them by their friends and colleagues. When you are shopping around for a physician, dentist or mechanic what do you do?

You ask around. Some people may rely on the Yellow Pages but the majority of people want to hear it from people they trust that a certain person or business is reputable. This is why it so important for you to begin building your reputation and for you to work with reputable contractors as well.

Your reputation precedes you and when people are pleased with you and the work you do, word will spread like wildfire. Never underestimate the power of referrals and never dismiss the importance of a stellar reputation to help you build your references.

Another free marketing opportunity for your multifamily deals is helping out at a charity fundraiser. If you sit on the board of any charitable organizations, you have a great pool of potential investors at your fingertips. You are able to get in touch with people that have money and money that they are looking to invest.

Good old-fashioned networking is another free marketing method. Network with fellow members at clubs you belong to. Reach out to those people that are in your focus groups. Take the opportunity when you are at work and hanging out with colleagues at the water cooler to let them know about your multifamily property deal and see if they are interested or if they might know someone who would be interested.

Another method of free marketing that is sometimes overlooked, is spying on your competition. Find out where they are getting their money and how they are funding their deals. Use your network to do this.

All of the strategies mentioned above are effective and cost you nothing. Take advantage of these strategies and put them to work for you. You will be pleased with the results and at the money you save.

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Lance Edwards is living proof of his mantra that you don’t have to “graduate” from single family to multifamily – you can start with multifamily; using none of your own money and not dealing with tenants and toilets. For FREE information, visit http://www.ApartmentWealthMachine.com.

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Multifamily Deals: Selling the Features and Benefits of Your Multifamily Property

You have created your multifamily property investment product to sell. But if you cannot market your product effectively, you will not have any sales and, in this case, you will not raise any private money.

In order to market your product successfully, you must first recognize that your private investors are only interested in themselves. This is where the “What’s In It For Me” technique comes into play.

What’s In It For Me

This technique goes by the idea that there are two things involved in marketing any product. Those two things are features and benefits.

Features: These are the things that make the benefits true. They allow you to produce the benefits. The features contribute to the benefits.

Benefits: The benefits are in the Four-Part Formula and include control, low risk and high return.

For example, let us look at the benefit of Control. One of the features of control is having a recorded first lien. Another feature is a controlled release of monies. Yet another one is the ability to intercede. These are all features of control and that is what the investor is interested in. Telling them how you are going to give them control helps convince them that they actually will have control. The way you promote control is by demonstrating it through its features.

The benefit of Low Risk is the fact that your multifamily deal is secured by real estate. The feature you offer to your investor is the experience of your team. This contributes to the feeling of low risk. You can further this security by bringing in extra collateral of a blanket mortgage.

To demonstrate the benefit of High Return, you will need to show your investor that the return they will receive from the deal is higher than what they indicate to be a good return on their Profile Sheet. Find that benchmark of what they consider to be a good return and then either match it or beat it.

You need to start with the reason why they need the money. The more you can speak to the potential investor’s reason why, the more money you can raise and the less return you have to pay. Once you determine their reason why and then explain to them how you will enable them to meet their reason why, you can then explain all of the benefits to them.

Only after you address the benefits of control, low risk, and high return do you then present the features to prove how you are going to deliver those benefits. So your process is simple: start with the reason why, discuss benefits and then the features.

You need to be sure that you do not spend the bulk of your time promoting features and neglecting the promotion of the benefits. Just remember to always have the investor’s perspective of “What’s in it for me” at the forefront of your thoughts and you will be able to address their questions and concerns and successfully market your product.

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Lance Edwards is living proof of his mantra that you don’t have to “graduate” from single family to multifamily – you can start with multifamily; using none of your own money and not dealing with tenants and toilets. For FREE information, visit http://www.ApartmentWealthMachine.com.

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