Successful Apartment Ownership Often Requires Raising Capital From Private Sources
Since a professional team is so important to your success as a real estate investor and, more specifically as an apartment owner, I would like to take the opportunity to discuss how to find and use these team members in a little more detail.
Just to recap, some of the essential team members that you’ll want to have in place include:
· Bird dogs
· A real estate agent or agents
· A commercial mortgage broker
· A banker (one or more)
· A title company or closing attorney
· A real estate attorney
· Private lenders
· An SEC attorney (if part of your business HULT PRIVATE CAPITAL includes securing private funding)
· An asset protection attorney
· An accountant or CPA
· Property management companies
As you start doing more and more deals as a real estate investor, unless you have unlimited resources (the consummate deep pocket) you will sooner or later reach the limits of what you can do on your own. Some investors find this depressing but I rather like to look at this as a path to boundless opportunity. I say this because it gets you into the habit of networking to find private capital, one of the best ways to work the business that exists.
Private capital is literally everywhere and is arguably limitless. This is because private capital is not limited to banking institutions or subject to the rules that govern the world of commercial finance. In short, anyone who you pass by on the street could be a private lender. Those Americans who are sick and tired of seeing their stock investments go in the tank are all potential private lenders. Anyone who see value in real estate but otherwise doesn’t really know how to proceed is an ideal private lender.
The key here is that you need to go out and find these people. Most don’t advertise and don’t wear t-shirts that say ‘I have money to lend’. You must first be a promoter of what you do. Apartments as an investment make perfect business sense because when they are purchased properly, have proven income streams that are almost ‘economy proof’.
Unlike other businesses, apartments put roofs over people’s heads and that gives them lasting value. In fact, it could be argued that apartments are an even better investment when the economy is bad because fewer people are looking to buy homes. It is this message that you must deliver to potential private lenders and the business model you follow will be more than logical, it will attract the capital you need.
Because the pursuit of private capital is so critical for your long-term success, I will be devoting future articles to the specific steps you need to take to pursue it. For now, know that it exists, it does work, and that once you know the rules for how and when to use it, the sky’s the limit.
Can you see how your empire can be created without you not having to be a jack of all trades? Follow with me through this series and you’ll continue to see how your own team can help you acquire the apartments you seek and help build the fortune that is out there for the taking!