I get questions about funding all the time. It’s usually about private lenders and cash buyers with regard to wholesaling…
But recently, a student asked me about financing for multifamily apartment complexes. I figured, we don’t talk about this strategy too often so it makes perfect sense to bring it here to y’all for a Mogul lesson.
Hey Moguls, Patrick Riddle here, and I’m going to give you a few more specifics to help us set the foundation before we dive in…
This student told me that his main goal is to acquire apartment complexes throughout the country via banks, asset managers, LoopNet, etc. He said his biggest frustration is that he just can't seem to get the right property with the proper financing to acquire it to actually land the deal.
So, he asked me how to go about finding all the cash that’s needed to acquire apartment complexes and to have a backup financing group or bank that will be there just in case the other bank gets cold…
Patrick Riddle
has been investing in real estate ever since he got the bug in college at Clemson University and - to his parents dismay - dropped out of college to dive full-time into real estate at the age of 22 with a couple friends/partners from school.
The first few deals were rough for them, mainly using their own cash, credit, and hard money loans. But, soon he found out that was a rough and unsustainable way to build a real estate business.
After "on the job" learning through the school of hard knocks at first, he found the key that helped their company get deals done more quickly, with higher profit, less risk, without having to go to banks or use their own cash.
Fast forward to today, their company has closed over 130 real estate transactions and has put over $6 million in private money into their own transactions.