From Soccer Moms to Multimillion-Dollar Multifamily Deals ($11M!)

TL;DR

Two moms transition from small flips to $11M multifamily deals.

Transcript

this is the BiggerPockets podcast show eight zero six so I understand that we need all this money how do you get it I was just like I don't even know how we're gonna get like a million dollars but at first and then you know as you start building it and you talk to people you're like okay there's there's an Avenue out there getting one person to giv... Read More

Key Insights

• Raising capital for multifamily deals is often easier with multiple smaller investors than a few large ones, emphasizing the importance of networking and relationship building.
• Partnerships thrive on complementary skills; in this case, one partner excels at finding deals, while the other focuses on operations and management.
• Participating in educational programs like the BiggerPockets Bootcamp can provide valuable insights and connections in the multifamily real estate space.
• Due diligence is crucial; during property inspections, unexpected issues like roof damage can arise, impacting the viability of a deal.
• Creative financing and negotiation strategies can help overcome financial hurdles, but sometimes walking away from a deal is the best decision for investor returns.
• The transition from small to large deals involves a mindset shift to become comfortable with handling larger numbers and complexities.
• Establishing roles within a team helps streamline processes, allowing each member to focus on their strengths and contribute to overall success.
• Building a network of reliable professionals, such as property managers and contractors, is essential for effective property management and investment success.

Questions & Answers

Q: How did Breanne and Denise start their real estate journey?

Breanne and Denise began their real estate journey with smaller investments, focusing on flips and rentals. They met through their children's soccer team and discovered a shared interest in real estate. They decided to partner up, leveraging their complementary skills to grow their investment portfolio.

Q: What role did the BiggerPockets Bootcamp play in their success?

The BiggerPockets Bootcamp provided Breanne and Denise with valuable knowledge and resources, helping them understand the intricacies of multifamily investments. It also facilitated connections with potential partners and mentors, which were crucial in scaling their operations to handle larger deals.

Q: What challenges did they face in their $11M deal?

During the due diligence phase of their $11M deal, Breanne and Denise discovered significant issues like roof damage and foundation problems. These unforeseen challenges increased the capital required, leading them to negotiate for price reductions and ultimately deciding to walk away when the seller was uncooperative.

Q: How do they manage investor relationships?

Breanne and Denise focus on transparency and communication to manage investor relationships. They ensure investors are aware of potential risks and returns, and they prioritize maintaining trust by making decisions that protect investor interests, even if it means walking away from a deal.

Q: What lessons did they learn from the failed deal?

The failed deal taught them the importance of thorough due diligence and the need to be flexible and creative in financing and negotiations. They also learned the value of having a strong team and network to support their investment decisions and operations.

Q: Why is defining team roles important in real estate investing?

Defining team roles is crucial as it allows each member to focus on their strengths, improving efficiency and effectiveness in operations. In Breanne and Denise's case, one partner focused on deal sourcing while the other managed operations, ensuring that all aspects of the investment process were handled proficiently.

Q: How do they approach raising capital for large deals?

They approach raising capital by networking extensively and building relationships with potential investors. They find it easier to attract multiple smaller investors rather than a few large ones, and they emphasize the security and potential returns of their investments to appeal to investors.

Q: What mindset shift is necessary for scaling to larger deals?

Scaling to larger deals requires a mindset shift to become comfortable with handling larger numbers and complexities. It involves understanding that larger deals can offer better returns and learning to assess and manage the risks associated with bigger investments.

Summary & Key Takeaways

• Breanne Weber and Denise Mayen transitioned from small real estate flips to pursuing multimillion-dollar multifamily deals. They emphasize the importance of partnerships with complementary skills and the benefits of participating in educational boot camps to gain insights and connections.

• Their experience highlights the necessity of thorough due diligence in property acquisitions, as unexpected issues can arise that affect the viability of a deal. They learned to negotiate creatively and consider walking away when investor returns are at risk.

• The podcast discusses the mindset shift required to handle larger deals, the importance of defining team roles, and the value of building a network of reliable professionals to support investment endeavors.