Take a Tour of the Course!

The Ultimate Guide to Buying Apartment Buildings with Private Money consists of 8 1/2 hours of video and audio as well as a 187 page eBook so that you can learn in whatever format you prefer and can review the material as many times as you like. Below you can review the sections of each chapter and see the length of the video/audio that goes along with it. You can also preview several sections for free to experience the course.

The course also comes with a vast Document Library which contains contract templates, check lists and other sample documents that are referenced throughout the course. Also part of the course is the Syndicator Legal Library samples and templates for structuring the entity as well as complying with securities laws when syndicating deals. Check out the contents of both libraries below.

The Syndicated Deal Analyzer is the best-selling financial model software/spreadsheet that is used throughout the course to analyze deals and model different scenarios from the time you first get a deal to due diligence and the ultimate refinance or sale. Watch a 17-minute video of how it’s used to analyze a deal from start to finish, how to structure the deal with your investors, and how to pay yourself.

And finally, you have additional video Case Studies to give you more practice analyzing deals.

Click on each of the course components below to learn more or just scroll down the page to tour the course.

 

Preview the Course Chapters

1 - Introduction

This course covers everything you’ll need to buy your first apartment building with a focus on raising money from private individuals. But beware! This course is very hands-on and action-oriented. It uses real-life examples and case studies to give you the knowledge and confidence to take immediate action and get results.

In this first chapter I’ll give you an overview of the course. I’ll also make the case that investing in apartment buildings is the single best way to achieve your financial goals, replace the income of your J.O.B. and retire early. And if that isn’t enough to convince you, I’ll work through a detailed case study!

 

Chapter 1 Introduction (Video 25 Minutes 8 Seconds)
Section 1 Course Overview (7:54)  [Preview This Section]
Section 2 Why Investing Apartment Buildings is the Best Way to Achieve your Financial Goals (7:44)  [Preview This Section]
Section 3 How to Retire Early by Investing in Apartment Buildings – A Case Study (9:30)

2 - Raise Money - Medium

 

 

In this chapter I teach you everything you need to know to raise money from others to fund your next apartment building. We talk about everything from how to find your potential investors and what to say to them to structuring the deal and securities laws considerations.

The secret to raising money I’ll share with you will allow you to get financial commitments from your investors long before you have your first property under contract. This secret allows you to get started with buying your first apartment now (whether or not you have money or credit), allows you to make offers confidently, and lets you close on time.

This chapter shows you to create your Deal Package, how to find your potential investors, and what to do and say when you get a meeting with one. I spend quite a bit of time describing the different ways you can structure the investment, from a Single Member LLC to an LLC with different membership classes that will do what you want it to do. We’ll take a detailed tour through two different operating agreements, a private placement memorandum, and subscription agreement that you’ll need to set up the LLC properly and be compliant with securities laws. We’ll also talk about unlocking massive capital in your investors’ IRA accounts. By the time you’re done with this chapter, you’ll have all of the knowledge, tools, and sample documents you’ll need to raise as much as you need for buying your next apartment building.

Chapter 2 How to Raise Money from Private Individuals to Fund your Deals (112:52)
Section 1 Why You Should Raise Money to Buy Apartment Buildings (4:45)  [Preview this Section]
Section 2 3 Tips to Find Your Potential Investors (10:28)
Section 3 What Apartment Building Investors Want and How to Give it to Them (6:19)
Section 4 Why to Avoid Taking Money from “Sophisticated” Investors (10:48)
Section 5 The Secret to Raising Money (1:44)
Section 6 How to Create a Sample Deal Package (7:40)
Section 7 How to Conduct Your First Meeting with a Potential Investor (11:02)
Section 8 What Kind of Legal Entity Should You Use? / Introduction to the Operating Agreement (7:00)
Section 9 5 Ways to Structure the Investment (6:31)
Section 10 Tour of an Operating Agreement (8:29)
Section 11 Tour of a Partnership Agreement (12:52)
Section 12 Avoiding Prison When Syndicating Real Estate Deals – Let’s Talk About Securities Laws (2:30)
Section 13 The Private Placement Memorandum (PPM) / Should you issue a PPM to your investors? (9:24)
Section 14 The Subscription Agreement (3:08)
Section 15 Working with Your Attorney (1:15)
Section 16 Unlocking Massive Capital in your Investors’ IRA and 401(k) Accounts (6:18)
Section 17 Chapter Summary (2:39)

3 - Select Area

 

The trick is to look for properties in the right kind of area. And within that area, you want a property to which you can add significant value in a short amount of time. But how do you recognize the “right” area and property? If you can’t find good deals in your own back yard, how do you go about building a team outside your area?

 

Chapter 3 Select the Right Area In Which to Invest – Even Out of Area! (20:20)
Section 1 4 Tips for Investing in Your Own Back Yard (6:55)
Section 2 When to Look for Deals Outside Your Own Area (1:20)
Section 3 6 Steps to Buying Apartment Buildings OUTSIDE Your Area (12:05)
4 - Find DealsThe # 1 way to get deals is from experienced commercial real estate brokers who take you seriously. This chapter contains sample emails, scripts and other tips to help you build trust with these professionals. This chapter also covers other techniques to acquire deals, including sending letters to apartment owners, my second favorite method for finding deals.

Chapter 4 How to Find Deals (28:06)
Section 1 The Single Best Way to Find Deals – Commercial Real Estate Brokers (17:34)
Section 2 The Second Best Way to Find Deals – Send Letters to Apartment Owners (10:32)
5 - Build TeamLong before you have your first deal under contract, you should have identified these other members of your team:

  • Property manager
  • Landlord/tenant attorney
  • Real Estate attorney
  • SEC attorney
  • Commercial lenders and brokers
  • Property Inspector
  • Appraiser
  • Insurance Agent

You need to do this for every area in which you want to purchase a building. Because this is so time-intensive, it’s best to concentrate on one area and buy your building(s) in that area. This requires networking and ideally face-to-face meetings, so it’s best to do this in an area where you already live. As we already discussed, you can also do this outside your area – you’ll just have to spend more time there, especially in the beginning.

Here’s the bottom-line: Your success as an apartment building investor depends on the strength of your team. So don’t cut corners and the build the best team you can.

 

Chapter 5 How to Build an A-Team (12:49)
Section 1 How to Gain Instant Credibility with Potential Team Members (3:04)
Section 2 The Single Best Way To Find Your Team Members (2:49)
Section 3 Who You’ll Want on Your Team (6:56)
6 - AnalyzeWhen a deal comes in, you will need to answer the following questions as quickly as possible: What is the building worth? What are your investment criteria and objectives? How would you structure the deal with the investors? What are the returns for you and your investors? How will you be paid? How believable are the reported financials? What is your version of the truth? What is the most you could pay for the property? This chapter shows you how to answer all of these questions with the Syndicated Deal Analyzer so that you can determine an acceptable offer price. This chapter also covers the different kind of ways to structure the deal, how to calculate your investors’ returns, and the different ways to compensate yourself.

Chapter 6 How to Analyze the Deal with the Syndicated Deal Analyzer (96:54)
Section 1 One of your Brokers sends you a deal, now what — Chapter Overview (5:05)
Section 2 Key Financial Concepts Related to Commercial Real Estate Investing (11:25)
Section 3 The 10 Minute Analysis (8:17)
Section 4 Understanding Investor Returns and Structuring the Deal (13:00)
Section 5 How to Pay Yourself (7:53)
Section 6 Sharpening Your Pencil – When and How to Overpay (12:59)
Section 7 Fine Tuning the P&L (8:19)
Section 8 Estimating Due Diligence and Closing Costs (3:35)
Section 9 Reviewing the Deal & Creating the Investor Deal Package (6:17)
7 - NegotiateMaking and negotiating offers is all about the numbers. You need to know when to walk away, so your upfront analysis is critical. This chapter contains negotiating tips to help get your offers accepted, whether you’re negotiating in person or through a broker. It covers in detail the Letter of Intent and the critical terms of the Purchase Agreement that will get you out of the deal if you don’t like it.

Chapter 7 Make and Negotiate Offers That Get Accepted (48:42)
Section 1 It’s all About the Numbers (1:36)
Section 2 10 Negotiation Tips to Get Your Offers Accepted (11:21)
Section 3 Putting It all Together (3:55)
Section 4 Effectively Negotiating via a Broker and Testing the Waters with Informal Offers (13:26)
Section 5 The Letter of Intent (5:52)
Section 6 Purchase Contracts that Keep You in Control (9:55)
Section 7 How to Amend a Contract with Addenda (2:37)
8 - Due DiligenceYou have a deal under contract – congratulations! Now the real works begins. This chapter will show you how to analyze the financials you received from the broker or seller, how to inspect the property, how to uncover any new information that could materially alter the deal negatively, and how to update your projected financials as you get new information to see if the deal still works or if you need to re-negotiate or get out of it.

Chapter 8 Perform Due Diligence To Avoid Mistakes (58:18)
Section 1 Delay Spending Money As Much As Possible (1:45)
Section 2 Due Diligence Checklist and Week 1 (15:59)
Section 3 Week 2 – Review the Seller’s Documents and Re-Evaluate the Deal (32:52)
Section 4 Week 3 (6:01)
Section 5 Time to Decide (1:38)
9 - Finance the DealI cover several creative financing strategies such as seller financing, taking the property subject-to its existing mortgage, assuming the mortgage, and master leasing the property. These techniques are valuable to know about and can be used once in a while. However, by far the # 1 way to finance apartment buildings is still with a traditional commercial loan. I spend a LOT of time in this chapter describing in detail how to work with multiple lenders and select the best one, how to create a  Loan Package that will get accepted, and how to overcome personal financials that may not support the deal.

Chapter 9 Financing the Deal (38:28)
Section 1 Creative Financing Techniques (11:15)
Section 2 5 Steps to Get the Best Traditional Commercial Real Estate Financing (20:00)
Section 3 But Wait! What if My Personal Financials Don’t Support the Deal? (7:13)
10 - ClosingThis chapter describes the steps from completion of due diligence to closing, including: finalizing your loan, creating the proper entity and drafting the appropriate legal documents, managing your investors, and a break-down of expected closing costs.

Chapter 10 The Home Stretch to Closing(16:57)
Section 1 Initiating the Closing Process (4:04)
Section 2 How to Handle the Closing Logistics with Your Investors (11:32)
Section 3 The Closing (1:21)

Here you can create the content that will be used within the module.

11 - ManageThis chapter describes how to find and select the best property manager, how to manage the manager, and when it may be time to replace the manager. I also discuss different techniques to increase income and minimize expenses to create maximum value.

Chapter 11 Manage the Property To Create Value (31:31)
Section 1 Should you Hire a Property Manager or Manage the Property Yourself? (2:08)
Section 2 How to Select the Best Property Management Company (6:34)
Section 3 Managing the Property Manager (3:50)
Section 4 Handling Repairs and Maintenance (1:44)
Section 5 7 Ways to Increase Income and Build the Value of your Asset (8:09)
Section 6 When to Fire Your Property Manager (9:06)
12 - ExitIn this chapter, I cover different exit strategies, such as flipping the property, re-financing, and selling outright (and tips for working with brokers and preparing your property for sale). I also describe the 1031 tax deferred exchange. Finally I give you some next steps after you finished the course!

Chapter 12 Exit Strategies for Maximum Profits (40:28)
Section 1 Quick Review of the Value-Add Case Study (1:38)
Section 2 Strategy # 1: Traditional Buy and Hold (3:35)
Section 3 Strategy # 2: Flip the Property (4:14)
Section 4 Strategy # 3: Cash-Out Refinance, Hold, and Sell For Maximum Value Creation (7:54)
Section 5 Using the Internal Rate of Return (IRR) (5:21)
Section 6 A Great Way to Own the Majority of the Building (7:35)
Section 7 Strategy # 4: Trade Up with a 1031 Tax Deferred Exchange (2:49)
Section 8 How to Sell your Property (5:14)
Section 9 Next Steps (2:08)

Syndicated Deal Analyzer

You’re looking for your first (or next) apartment building but you’re not sure how to properly analyze the deal. Or you do, but it’s taking you too long to answer these critical questions:

  • What is the MOST I can pay for this deal, and why?
  • What are my projected profits?
  • How Should I Structure the Deal with My Investors?
You know that answering these questions will take you hours — but you can’t afford to spend several hours analyzing every deal you get. You need to be able to do it in 30 minutes or less. The more deals you can analyze quickly, the more likely you’ll find the deal that will work for you.

With only a little information, the Syndicated Deal Analyzer can answer these questions in just a few minutes.

When I first got started, I created my own spreadsheet, but it took me four hours to analyze a deal to calculate my maximum purchase price. I even bought some analysis software but I couldn’t customize them to suit my needs. It was holding back my ability to analyze lots of deals quickly. And I knew I had to look at a 100 deals before I would find the one that worked!

The Syndicated Deal Analyzer has helped me reduce my analysis from 4 hours to just a few minutes so that I can come back with an acceptable offer price. It lets you analyze more deals in a shorter period of time. This allows you to quickly dismiss the deals that won’t work and find the deals that will.

Since the asking price of most buildings don’t meet our buying criteria, it’s not enough to say “this deal won’t work for me.” You need to be able to get back to the seller and be able to say “this deal won’t work for me because XYZ, but it would work at this price, and here’s how I came up with that number.” This immediately starts the negotiation process, lets you test the seller’s motivation, and gets you closer to your next deal.

You’ve probably seen a bunch of other calculators, but here are three reasons why the Syndicated Deal Analyzer is different (and better!):

  • The Syndicated Deal Analyzer is transparent and customizable. You can purchase financial models from other sources but they are either “black-box” software or non-editable spreadsheets. In either case, you can’t understand and learn the formulas behind the numbers and you can’t customize them the way you want. The Syndicated Deal Analyzer is a fully customizable Excel spreadsheet, and all formulas are clearly visible.
  • The Syndicated Deal Analyzer incorporates returns for investors and compensation for yourself. I have not seen a financial model out there that lets you “play” with different investment structures for your investors (such as simple loan, straight equity, preferred rates of return and combinations thereof). The Syndicated Deal Analyzer also shows you the impact on your returns if you pay yourself. The guideline is, you can pay yourself as much as you can as long as your investor returns are achieved. But how much?
  • The Syndicated Deal Analyzer can be used to create a Deal Package in minutes. Once you completed your deal analyzer, the Syndicated Deal Analyzer makes it easy to copy and paste all aspects of the deal to a Deal Package that you can give to your investors, bankers, and other professionals.

Please see for yourself!

Watch this 17 minute video which shows you how to analyze a deal from start to finish using the Syndicated Deal Analyzer.

Document Library

The Document Library is referenced throughout the course. This page lets you download each document separately or as as one ZIP file.

Raising Money from Investors

Making Offers

Due Diligence

Dealing with Lenders

Syndicated Legal Library

The Syndicator Legal Library is referenced throughout the course. This page lets you download each document separately or as as one ZIP file.

Case Studies

New Hampshire Ave (44 Units): Sample Deal Package

This case study a video analysis and also contains a Sample Deal Package you can use with your investors. Note that this deal closed sometime in 2013 for somewhere around $3.6M, considerably higher than what our offer price would have been. I used this deal as a Sample Deal Package for potential investors, which is why you see a Sample Deal Package in the referenced files below.

Chinquapin Apartments (24 Units): Initial Analysis, Site Visit, and Offer

This is a value-add deal in Baltimore that eventually closed for $1,050,00. This case study consists of 3 videos:

  1. Initial analysis
  2. Site visit
  3. Final analysis and offer (with Letter of Intent)