How To Make An Offer On A Multifamily Real Estate Property

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Learn how to make an offer on a multifamily real estate property!

VIDEO TRANSCRIPTION

00:01
3 30 central we’re just getting that out
00:03
of the way right yeah we’re just getting
00:03
out of the way so every monday at 3 30
00:05
central you have your lovely host ferris
00:07
and the other guy
00:07
ben we basically you know sit up here we
00:10
talk about real estate and multi-family
00:11
i’m the brains of the operation
00:12
right yeah yeah of course man of course
00:15
um
00:16
so with that said what are we talking
00:17
about today man you can’t even say that
00:19
with a straight face
00:20
uh i can say with the straight face
00:21
don’t worry about killing me man you’re
00:22
killing me all right so we’re talking
00:23
about how to make an offer on a
00:24
multi-family property and i would say
00:25
that
00:26
some of the stuff that we’re going to go
00:27
over is also just going to be indicative
00:28
of a commercial real estate offer in
00:30
general and we’ve made an offer or two
00:31
in our careers
00:32
a couple a couple right you know we
00:34
probably made a couple this week
00:35
yeah it’s only monday yeah absolutely
00:37
talking to broker earlier today about
00:39
receiving an offer too so both ends of
00:40
it i’ll take it i’ll take it so yeah and
00:42
that’s actually a good point we
00:43
will see if we can spin through this
00:45
because you know people that own deals
00:46
what to expect whenever you’re
00:48
putting your deal on on the market too
00:50
right no so
00:51
we’re gonna hop right into it so make it
00:53
an offer on a multi-family real estate
00:55
property right
00:56
i think first and foremost you’re gonna
00:57
have to get all the details from
00:59
uh the broker right most of the time
01:01
you’re not gonna be working with the
01:03
seller that’s a you know a misconception
01:05
especially when you’re talking about
01:07
bigger properties
01:08
99 of the deals that are getting done
01:10
folks are going
01:11
through a broker some way shape or form
01:13
maybe it’s off market maybe it’s on
01:14
market
01:15
the broker is facilitating that
01:17
transaction yes and as part of their fee
01:19
that they’re getting they’re going to
01:21
collect all the data
01:23
the financials maybe put a packet
01:25
together in terms of what’s called an om
01:27
an offering memorandum um you know maybe
01:30
some other salient points
01:31
that they’re then going to shop around
01:33
to potential buyers
01:34
right so you got to underwrite those
01:36
deals right and what does underwrite
01:38
mean for the people that are kind of new
01:39
to our
01:40
show and you’re analyzing so analyzing
01:42
is just a fancy word for analyzing
01:44
whether you’re an insurance guy
01:45
underwriting a deal that you’re about to
01:47
insure or you’re a syndicator and you’re
01:48
about to buy a deal and you’re
01:49
underwriting the bill you’re going to
01:50
buy
01:50
or you’re a lender and you’re about to
01:51
provide the debt on a deal that you’re
01:53
about to find the debt on it’s just
01:54
analyzing you’re determining you know
01:56
what the returns are going to be at the
01:57
end of the day right and
01:58
do they fit that box right that you’re
02:01
looking for whether you’re buying it on
02:02
your own
02:03
right your box could be different than
02:05
if you’re syndicating
02:06
right or if you have a fund it could be
02:08
something different too right
02:10
it’s all about the deal and the numbers
02:11
right so you have to underwrite those
02:13
and and that’s
02:14
usually phase one right the three
02:15
usually takes up the most time that is
02:16
what takes
02:17
at least the financial due diligence
02:18
you’re doing you’re looking at 100 deals
02:20
to find
02:21
one deal that might make sense yeah so
02:22
you’re underwriting the deal right
02:24
does it fit your box okay yes it does
02:26
right
02:27
now what do you do most of the time
02:29
you’re gonna do some probably some more
02:30
upfront due diligence
02:32
in the form of doing a property tour if
02:34
it’s on market or if you can
02:36
even if it’s off market you’re at least
02:38
going to try to drive by the property or
02:39
if it’s out of state you’re going to
02:41
find some boots on the ground that can
02:42
go dry by the property get you some
02:43
pictures
02:44
find out the condition of the property
02:46
right and then ultimately find out what
02:47
the
02:47
condition of the submarket is you’re
02:49
never going to know that until you drive
02:50
around
02:51
don’t trust google maps don’t trust
02:52
anybody else go and try to lay eyes on
02:55
it or have somebody that you trust lay
02:56
out
02:56
speaking of true story there’s a deal
02:58
that we’re looking at in atlanta atlanta
02:59
doesn’t have a lot of
03:01
uh starbucks in south atlanta which is
03:03
where we’re looking and i was out there
03:05
and basically there was a deal
03:06
that if you street viewed it it was
03:09
really close to essentially a boarded up
03:11
oh i think it was a church it was an old
03:13
murdered boarded up church
03:14
well but if you’re there in person you
03:16
would have seen that that’s actually
03:18
getting redeveloped into a starbucks so
03:20
most of the people that never went out
03:21
there would have just done what most
03:23
people do look it up on street view and
03:24
you think that’s it
03:25
but i knew it was a starbucks that was
03:27
getting built there which is going to
03:28
obviously that shows that there’s a lot
03:29
of value happening in that area
03:31
starbucks is willing to invest in there
03:32
and that would lead to other things and
03:33
so yeah there’s really
03:34
i would say folks this is a this is a
03:36
crazy fact in south atlanta there’s less
03:38
than half a dozen south park
03:39
uh starbucks yeah and the whole entire
03:41
this is like less than three
03:43
in like the immediate south out yeah
03:45
yeah you go a little bit further out
03:47
south but you know in the middle that’s
03:48
just how we know about all the stuff
03:49
yeah one and we just happened to buy one
03:51
that’s close to that we are not start
03:52
we’re not spa i gotta ask this we are
03:54
not sponsored by starbucks yeah we’re
03:55
good
03:56
anybody knows taking a shot if anybody
03:57
knows starbucks uh sponsors let us know
04:00
there we go so before you continue
04:02
monday mondays
04:03
every monday 3 30 central yep we’re
04:05
talking about making an offer on a real
04:06
deal
04:07
and kind of talking through what that
04:08
process looks like if you have any
04:09
comments questions
04:10
leave them we’ll answer them here it
04:12
doesn’t have to be about today’s topic
04:14
usually we’ll do about 15-20 minutes
04:15
presentation then 10 minutes q a
04:17
yep so with that said let’s really
04:18
quickly go through some comments chat
04:20
says hey guys
04:21
hey chat ronnie says what’s up and
04:23
ronnie what’s up ronnie ronnie ronnie
04:25
ernest says good day guys keep up great
04:28
job much better than clubhouse
04:30
thanks earnest we’ll take it i don’t
04:32
know anything i’ve heard of it i don’t
04:33
know i’ve never been on there i don’t
04:34
know rodney
04:35
might say you’re not part of the big
04:37
clubhouse guy
04:39
let’s see so iggy says what’s up sorry
04:40
jefferson says how are you doing we’re
04:42
doing well
04:42
iggy says what’s up what’s up thanks for
04:44
the investments
04:46
let’s see jefferson says have you tried
04:48
paying someone that you get from
04:49
craigslist to go to an apartment and one
04:51
hour
04:52
worth of their time to take video and
04:53
pictures of outside the complex and
04:55
upload somewhere
04:56
you could yeah absolutely good we’ve
04:58
done that uh we’ve had someone do drone
04:59
footage before
05:00
we’ve done that i mean i guess maybe
05:02
he’s talking more on the upfront you
05:03
just have to weigh your your costs right
05:05
because if you’re looking at 100 deals a
05:06
month
05:07
yeah you don’t want to pay somebody a
05:08
hundred times to go look at it so some
05:10
of this stuff’s on the leap of faith but
05:11
you ultimately want to try to develop
05:12
some boots on the ground
05:14
the other thing that i always tell
05:15
people too because they’re always like
05:16
well how do we do this in another city
05:18
it and it’s going to take some finesse
05:20
or it might take a deal or two down the
05:21
road
05:22
your property management company will
05:23
also tour deals for you on your behalf
05:26
or maybe a general contractor will
05:27
toward the deal yeah they can at least
05:28
that’s a good point
05:29
you know at least at least give you the
05:30
condition hey you know we looked at a
05:32
couple units this is what they look like
05:34
you know those two are trusted advisors
05:36
to your team right
05:38
you know so if you can’t get out there
05:39
you don’t have any boots on the ground
05:41
you could ask a property management
05:42
company now the expectation is that
05:43
they’re going to get the deal if you win
05:45
it
05:46
right and they’re most of the time only
05:47
going to do that for clients
05:49
current clients but it’s always worth it
05:52
ask
05:52
right you know so like i tell ben it
05:54
usually does not hurt to ask about
05:56
anything
05:57
it surprises me sometimes you know i
05:59
mean sometimes people are just kidding
06:00
all the time
06:01
for the record let’s get down so you got
06:04
to do your upfront due diligence right
06:06
because the the numbers are important
06:07
that’s but that’s only part of the
06:08
process right
06:09
then you got to kind of verify right
06:11
that okay is
06:12
is for example the capex number that you
06:15
that you analyze it to right 5000
06:17
door 4 000 or whatever is that actually
06:19
what it where it’s at right maybe it’s a
06:21
ton more maybe it’s a ton less
06:23
right so then if you say okay hey all
06:26
this is starting to match up stars are
06:27
starting to line
06:28
what are you gonna do right we always
06:30
say you obviously need to have a team
06:32
already put together you know you need
06:34
to start kind of determining you know
06:35
should i go ahead and look at a term
06:37
sheet for this deal and a term sheet for
06:38
folks that don’t under don’t know where
06:40
that is
06:41
is you’re going to a mortgage broker
06:42
you’re going to a lender and you’re
06:44
getting terms for what that loan is
06:46
going to look like right how much
06:47
leverage or how much loan proceeds are
06:49
you going to get what’s my potential
06:51
interest rate
06:52
how many years of io am i going to get
06:54
how long of a term is it going to be
06:56
right
06:56
you need that to start fine tuning the
06:58
underwriting or the analysis that you’ve
07:00
done
07:00
the other thing too is you need to get
07:02
an insurance quote right
07:04
so you know those are those are some of
07:06
the big things that you have to
07:07
understand
07:08
to make sure that those numbers are
07:10
going to um you know ultimately align
07:12
with where your box is right going back
07:13
to that box
07:14
right one place to get your insurance
07:16
quote if you’re here in texas
07:17
q dot strategic insurer.com
07:21
check it out it’s a great automated tool
07:23
that we use um some friends of ours have
07:25
put it together
07:26
you know less than three minutes you get
07:28
your quote so you know something to take
07:29
a ticket that’s the thing there’s some
07:31
things that you should validate
07:32
before you get under contract or submit
07:34
an offer there’s some things that you
07:36
can validate later
07:37
absolutely and so like you know we kind
07:38
of pencil in debt until we get to
07:41
further wrong in the process right but
07:42
we’re also we’ve also been doing this
07:44
for years right
07:45
you know so i mean i think i agree with
07:47
you
07:49
yeah and the insurance is the other
07:50
thing where we kind of have an idea of
07:51
what insurance is in our markets
07:53
but again you know it gets a point where
07:55
you need to qualify and verify that and
07:56
so i think that applies to a lot of
07:57
these this is where the team matters
07:58
so having the right team around you you
08:00
can ask the quick question like hey
08:01
so-and-so
08:02
i know debt is usually this but this
08:04
deal is really weird it’s got purple
08:05
walls but it’s not going to affect the
08:07
debt you know you might ask the question
08:08
for the one-off that don’t fit that box
08:10
that’s usually there
08:11
and having the right team there but you
08:12
know is valuable because then you can
08:14
ask those things without them having to
08:15
go and do a deep dive on it right it’s
08:17
really
08:18
you know i like to say pass the sniff
08:19
test make sure you kind of sniff each of
08:20
the
08:21
the important things that matter before
08:23
you get under contract and then you
08:24
start to this is what jams up the
08:26
analysis paralysis folks right they want
08:28
to cross
08:29
every t and dot every i before they will
08:32
make their offer right that’s fine with
08:34
me all right i want people to go
08:35
spend their time doing the other things
08:37
because
08:39
and we’re going to make that offer folks
08:41
there’s you know in this
08:42
in this day and age there there’s
08:44
expediency sometimes when’s the deal you
08:46
have to understand that right you cannot
08:48
sit there and wait until all the stars
08:50
align before you can make that offer
08:52
right because
08:53
at the end of the day it’s a letter of
08:54
intent it’s a non-binding document right
08:57
so let me kind of step back and you know
08:59
okay you’ve got all your ducks in a row
09:00
you’ve analyzed it
09:01
you got all your soft quotes everything
09:03
kind of you know everything’s looking
09:05
good on the deal right
09:06
what’s going to happen right if it’s an
09:07
off-market deal you should go ahead and
09:09
slide that offer in as quickly as you
09:11
possibly can right
09:12
if it’s an off-market deal there might
09:15
be an official call for offers and in
09:16
that case you want to ask
09:18
the broker hey can i can i send in a
09:19
pre-emptive offer they might say yeah
09:22
or no or if you do it has to hit this or
09:24
don’t even bother
09:25
right and so that’s just a discussion
09:27
that you’re gonna have with the real
09:28
estate broker right
09:29
and if it is waiting for a call for
09:31
offers date you then submit your loi
09:34
they’re gonna size up the offers
09:36
depending on the strength of the offer
09:37
the strength of the team the strength of
09:39
the terms right
09:41
and then they’re gonna usually call a
09:42
best and final right where they’re gonna
09:44
pick the
09:44
the best three to five depending usually
09:47
on price is
09:48
the main thing that matters and those
09:50
people go to best and final well
09:51
there’ll be another
09:52
layer of due diligence that you’re going
09:54
to have to do there’s going to be
09:55
sharpening of your pencil
09:57
and they’re ultimately going to beat you
09:58
up to try to get your price up as high
09:59
as they possibly can
10:00
and then finally they’ll pick a winner
10:02
on an off market deal it’s a lot more
10:03
informal they’re most likely just going
10:06
to pick somebody
10:07
and then you you know at that point you
10:09
go straight into the purchase and sale
10:11
agreement negotiation part of this
10:12
process right so
10:14
today we’re just talking about making
10:15
that offer and i’ve talked about this in
10:17
the past it’s all a numbers game
10:19
right you have to make 100 offers to get
10:22
into 20 best and finals
10:23
to potentially get one deal right you
10:25
know now the numbers might be slightly
10:27
off on there but
10:28
right now as hot as multi-family is
10:30
right you have to really be
10:32
it has to be number driven you can’t
10:33
just put an offer or two in every month
10:35
and then expect a fund to win a deal
10:37
unless you’re just prepared to pay up
10:39
you’re never going to win anything right
10:41
you know so you have to constantly be
10:42
underwriting deals you have to be
10:44
constantly making
10:45
offers to hopefully finally get some
10:47
deals going right
10:48
yep so the very most important thing
10:50
have a system
10:51
have a process and execute have a team
10:53
right and
10:54
if you say hey i don’t want to go hire
10:55
people i don’t have a partner you know
10:57
the team can also be these other people
10:59
that you know that want you to close
11:01
right
11:01
your mortgage broker your your general
11:03
contractor your property management
11:05
company your insurance
11:06
you know broker all these folks want you
11:09
to close and they’re going to try to
11:10
give you the right data to make
11:12
the informed decisions so you can get to
11:13
that closing table because that’s when
11:14
most of them get paid
11:16
right so at the end of the day you have
11:18
to have a trusted team as well around
11:20
you
11:21
so that’s kind of making an offer right
11:23
what did i forget
11:24
let’s think i mean what else so we
11:25
talked about the best and final you want
11:27
to quickly talk about
11:28
what the transition is after best and
11:29
final into yeah actually psa let’s just
11:32
talk about that that’s
11:33
that’s a good point that’s a good point
11:34
so you’ve got an loi plenty of good
11:35
points ben
11:36
hey buddy i don’t know why you keep
11:37
doing it i’ll just pat you on the back
11:39
all right there you go
11:40
pat it on the back all right brush your
11:42
shoulders off
11:44
so you’ve got an loi it’s non-binding
11:46
right you can
11:47
the guy the seller can sit on that and
11:49
then the next day can award the deal to
11:51
somebody else it’s non-binding that’s
11:52
the whole point of it right
11:54
but in the loi and we’ll kind of go
11:55
through this in a future um
11:57
you know um show you know you’re gonna
11:59
have your terms and your conditions on
12:01
top of your pricing right
12:02
that those terms and conditions are
12:04
gonna be the basis of your purchase and
12:05
sale agreement so
12:06
after you’ve signed an loi now we won’t
12:09
get into early access agreements i’ll
12:10
get into that
12:11
next week right but let’s just say you
12:13
go straight into the purchase and sale
12:14
agreement negotiation that is the
12:16
binding document and that’s going to go
12:17
from a one or two pager
12:19
to a potentially 10 to we’ve seen them
12:21
as long as 100 pages long
12:23
right where it’s going to talk about
12:25
every possible scenario that could
12:26
potentially blow up the deal and who’s
12:27
going to be responsible at the end of
12:28
the day
12:29
right but the the main business points
12:32
that are going to be in your loi are
12:33
going to be incorporated into your psa
12:35
once you execute the psa that’s your
12:38
effective date that’s day one
12:40
now you usually are going to have
12:41
anywhere from 30 to 90 days to close the
12:43
deal
12:44
right but that’s always day one you’re
12:45
getting shot out of a cannon
12:47
right so that’s kind of the process you
12:49
know and usually between
12:50
loi and signing the psa it’s usually
12:53
everybody always says
12:54
oh we want to get it done in a week it
12:56
usually takes anywhere from i’d say
12:58
10 to 20 business days just because
13:01
you’re dealing with lawyers there’s a
13:02
lot of back and forth there’s red lines
13:04
you know you’re negotiating an agreement
13:06
a contract right and that sometimes
13:08
takes a time it takes a while especially
13:10
depending on the lawyers that are
13:11
involved
13:11
right because they like to rack up
13:13
billable hours that’s just what lawyers
13:14
do
13:15
hey hey hey let’s talk no no we we have
13:17
a lot of lawyers so
13:20
no offense they’ll probably agree to it
13:22
um you know but that’s what it is right
13:24
they’re trying to look out for
13:25
everybody’s best interests
13:26
and so that’s what they do so that’s
13:28
kind of the process right
13:29
yeah any comments questions let us know
13:33
all right monday mondays every monday at
13:35
3 30 central
13:36
15 20 minute presentation absolutely 10
13:38
minutes q a and we’re
13:40
reaching that q a piece and that’s why i
13:42
drink this coffee folks i’m trying to
13:43
blow through this as quickly as possible
13:45
because the most
13:46
the the most interesting part of this is
13:48
when people actually have questions it’s
13:49
more interactive i totally agree so
13:51
you have any comments questions let us
13:52
know we’re happy to kind of talk to them
13:55
anybody so let’s see anybody this is
13:57
going to be easy
13:58
now we’re going to we’re going to we’re
14:00
going to do some more talking if they
14:00
don’t come back with anything
14:02
going once if not going twice we’re not
14:06
wrapping it up early all right buddy
14:08
all right here’s a question steve do you
14:09
have a loi template
14:11
that you typically use if you want to
14:15
email me you could even yeah
14:16
we have a standard temple that we use we
14:18
can send a copy of that
14:19
and really what does an loi template
14:21
have that’s an important thing yeah i
14:22
like that right
14:23
you know i think that’s that’s a good
14:25
point right you know you’re going to
14:26
have would you
14:26
have plenty of those good points ben i
14:28
already patted you on the back once all
14:29
right i’m not doing it twice
14:31
all right so you’re gonna you’re
14:32
obviously the first and foremost it’s
14:33
your price
14:34
how much earnest money are you gonna put
14:36
down is any of that earnest money going
14:38
to be non-refundable
14:39
how long is it going to be to close do
14:42
you have longer is going to be to
14:43
execute the psa yeah how long is it to
14:44
be
14:44
a psa then how long is it going to be to
14:47
close
14:48
then do you have any extensions and how
14:50
much are those going to cost
14:51
right um what else sometimes you’re
14:54
going to have some miscellaneous stuff
14:55
depending on the deal like we’ve had
14:57
some off-market deals where we haven’t
14:58
really seen up-to-date financials
15:00
or we haven’t toured the property and
15:02
sometimes just as a
15:03
um you know a little bit of um you know
15:06
a way for us to protect ourselves
15:08
we’ll put in caveats like we’ll not
15:10
execute psa until we’ve done a property
15:12
tour and seen up-to-date financials
15:14
right
15:14
because ultimately you can add in
15:15
whatever you want but if you come in
15:17
there with a 15-page loi you’re going to
15:19
scare pretty much everybody off
15:21
so you know i always try to say it’s
15:23
non-binding and so you’re trying to
15:24
highlight the key things that once you
15:26
go to psa which is binding
15:28
you’ve already outlined those so that
15:30
they’re not coming as a surprise these
15:31
are business things for the most part
15:32
right you’re not trying to get into the
15:33
legalese like once again
15:35
you can even do something like uh you
15:37
know i require that i get to keep the
15:39
staff you could actually say that in the
15:40
code
15:40
in london then you could say that in a
15:42
psa you could say that the seller is
15:44
going to replace all the front doors
15:45
as part of the loi and then you get that
15:47
mps so it’s really
15:48
mentioning the things that you i say buy
15:50
or care about that the seller cares
15:52
about or
15:53
want to know about right so really
15:55
that’s the standard terms we talk about
15:56
price those things then it’s also
15:57
anything that’s like a
15:58
more of a gotcha like hey seller i just
16:01
want you to know if
16:02
you know before i waste any of your time
16:04
i really care about these two things
16:05
yeah i know and you should right because
16:07
ultimately you’re just every every
16:09
second that you get closer to closing
16:10
you’re wasting money of your own
16:12
your own so you have to be careful about
16:13
that right absolutely so if
16:15
if retaining the staff or they have to
16:18
replace all the doors as a deal breaker
16:20
for you
16:20
go ahead and get it out there right
16:22
because if you don’t you wait until psa
16:24
now you’ve engaged a lawyer lawyer’s
16:25
gonna want a retainer there’s gonna be
16:27
money involved
16:28
you know you’re gonna be wasting money
16:29
you might as well just get it out of the
16:30
way
16:31
first and foremost and show them that
16:32
that’s what’s important to you yeah
16:34
and that all this gets incorporated in
16:36
the psa and then it’s not a surprise
16:37
right because
16:38
guy might come back and say screw that
16:39
i’m taking all the doors or i don’t
16:41
wanna i don’t have the money to spend on
16:42
the doors why would you even
16:43
ask me to do that yep right you know
16:46
let’s keep going so nala says
16:47
any lawyers you recommend in houston for
16:49
both transaction sec work
16:51
nobody in houston that does both but you
16:54
know
16:54
lawyers that we’ve used that recommend
16:56
dugan kelly mm-hmm
16:58
gene trowbridge and merrill callister
17:00
the three firms that we’ve used
17:01
and they’re all good sharp people great
17:03
people highly recommend them very very
17:04
smart guys
17:05
you know so i look all them up they’re
17:06
all online they’re probably they
17:08
mingle in all of our circles so and they
17:11
all do very very good work
17:12
absolutely let’s see next question uh do
17:15
you provide a short
17:16
cover letter wire why you are the right
17:19
buyer along with the loi
17:21
you could you could and i know eric up
17:23
church does something kind of creative i
17:25
mean he’s kind of military guy
17:26
you know they have they have a video
17:28
that they send along um
17:30
it just depends right you know i mean
17:32
once if you’re starting off and you feel
17:34
like hey you need to really sell
17:35
yourself to get your first or second
17:37
deal
17:37
then maybe we don’t do that right
17:39
because at the end of the day we’re
17:40
working with brokers that know that we
17:41
can close
17:42
uh we already have the reputation of
17:44
being able to close so we don’t really
17:45
need to
17:46
talk ourselves up but there’s bigger
17:48
institutional guys that we’ve we’ve gone
17:49
up against and
17:50
you know we have to do a seller
17:51
questionnaire as part of the best and
17:53
final and we
17:54
we have to get on seller interviews as
17:55
well right where we have to talk up
17:57
disrupt equity
17:58
why should i award you this deal versus
18:00
the other guy
18:01
right and that’s when you really have a
18:03
time to shine right versus a cover
18:05
letter
18:06
may or may not get you to the next phase
18:08
i don’t know it probably can’t hurt
18:09
though
18:10
right i totally agree no no i’ll see you
18:12
so any more comments
18:14
questions so monday mondays every monday
18:15
3 30 central
18:17
we usually do about 15 20 minute
18:19
presentation 10 minutes q a we’re in the
18:21
q a section
18:22
feel free to ask questions anything you
18:23
guys want to ask about anything but in
18:25
the meantime while we’re waiting for
18:26
questions all right
18:28
we’re talking about our tool kit and we
18:30
we’ve talked about this in the past
18:31
right
18:32
where we put all of our checklists all
18:34
the webinar replays
18:36
all the podcasts that me and ferris have
18:37
been on right and more
18:39
on the toolkit so check us out
18:41
disruptequity.com
18:43
toolkit you get all that for free we’re
18:45
not trying to tell you anything
18:47
you know pop in your information boom
18:48
there it is right so
18:50
it’s got a lot of good information all
18:51
condensed into one thing
18:53
yeah so there’s a five dollar off coupon
18:55
for taking ben
18:56
out to get a coffee so hey my coffees
19:00
cost 5.57 all right
19:02
uh let’s see so any more comments
19:03
questions if not we will call it a
19:06
wrap-up oh also
19:07
whoa whoa what else do we got whoa whoa
19:09
wrapping up nice try
19:11
all right so as everybody knows we got
19:13
our conference coming up february 27th
19:16
the multi-family investor network so uh
19:18
we’re putting it on right here in
19:20
houston right up the road from our
19:21
office
19:22
this could be the third time in houston
19:23
last year we had the mayor and over 400
19:25
people yeah
19:26
you know we got a lot of great speakers
19:27
a lot of great panelists this time we’re
19:28
still we’re still gunning for the mayor
19:30
too
19:30
we don’t want 400 people so no we don’t
19:32
want for we’re doing this coveted safe
19:33
folks
19:34
right you know so we’re obviously going
19:35
to condense how many people are going to
19:36
be in we’re getting a bigger room
19:38
we’re gonna give masks as part of your
19:40
you know um
19:41
your ticket price right swag bag and a
19:44
swag bag right
19:45
you know and we’re giving you a hundred
19:47
bucks off
19:48
right it’s a pretty good value so put
19:50
disrupt into the checkout
19:52
so check it out at mf
19:54
investornetwork.com
19:56
and you’ll get your 100 off on the
19:57
ticket it’s a one-day event we also have
19:59
a friday night networking that we will
20:01
be doing
20:01
you know people getting close to selling
20:03
out so it’s actually we’ve gotten more
20:04
interest than we realized so i think
20:06
people are hungry for
20:07
four events and so if you’re interested
20:10
first come first serve definitely give
20:11
it a check out
20:12
yeah no we got some good people coming
20:13
out and some great panels
20:15
so you’re not gonna learn everything
20:16
about the business but you’re certainly
20:17
we’re certainly gonna put all the
20:18
vendors
20:19
and a lot of good contacts at least give
20:21
you that foundation to really go out and
20:23
learn the business
20:23
we got one question before we wrap up uh
20:25
do you send in the loi to sellers
20:28
sellers broker or do you have your
20:30
attorney send it no absolutely
20:32
do it yourself don’t try that to avoid
20:34
try not to
20:36
involve a lawyer uh until you’re
20:38
executing a bsa yeah because it’s just
20:39
once again he’s gonna
20:40
he’s gonna charge you 30 minutes just to
20:42
draft that email and send it off guys so
20:44
you know just go ahead and send that and
20:46
you know yeah why again it’s non-binding
20:48
you’re just trying to highlight the key
20:50
stuff once you get to the psa then
20:51
definitely get your attorneys involved
20:53
that is a binding contract the one thing
20:55
i’d caveat on the lois right you know i
20:56
know it’s non-binding and
20:58
some people get a little loose with it
20:59
right don’t try don’t just throw in an
21:01
offer
21:02
or throw in a big price just to try to
21:03
tie up the deal and then think that you
21:05
can renegotiate
21:06
that is the quickest way to burn your
21:08
reputation in this business because the
21:09
broker is going to be mad
21:10
the seller’s going to be mad nobody in
21:12
the transaction is going to like that
21:13
now if there’s a legitimate reason why
21:15
you need to renegotiate
21:16
then that’s another story right but we
21:18
also see people where their whole mo
21:20
is is to try to throw in that high ball
21:21
offer to try to tie up the deal
21:24
in hopes that they can beat the seller
21:25
down on price right
21:27
and it doesn’t work like that right
21:28
you’re just going to piss people off
21:30
so you know put in an offer that you can
21:32
commit to right that’s the most
21:34
important thing
21:34
don’t waste people’s time in this
21:36
industry oh my gosh people
21:38
things can go on for a long time and
21:39
take a lot of time and the last thing
21:40
you want to do is waste people’s time so
21:42
nope
21:42
absolutely not absolutely not so
21:45
anything else man i think we’re good
21:46
we wrapped through that pretty quick
21:48
going once we’re almost right on time so
21:49
all right so what are we talking about
21:50
next week man
21:51
we are talking about whatever’s on the
21:52
screen ben hey hey you’re supposed to
21:54
read it
21:55
multi-family real estate transactions oh
21:58
oh oh all right you’re the negotiator
22:00
i’m a negotiator and i may not even be
22:02
here next year
22:03
we’ll cease all right well then he’ll
22:05
give me some tips on how
22:06
to disrupt some tips you know but no
22:09
we’ll
22:09
we’ll talk about that i think that
22:10
that’s also important because there is a
22:12
little bit of an art to this right it’s
22:13
not
22:13
you know obviously the numbers but
22:15
matter but also there’s a relationship
22:17
business too we always talk about it’s a
22:18
50 50 game
22:19
and so you know obviously the art of
22:21
negotiation and having good
22:22
relationships
22:23
is going to help you get your your offer
22:25
across the finish line
22:26
i totally agree all right so with that
22:28
said we’ll call it a wrap then
22:30
go ahead and wrap it up more confidence
22:31
questions if not going once
22:34
going twice and that’s it
22:38
brad you’re welcome as well so thank you
22:39
guys very much we’ll see you next monday
22:41
3

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