Wouldn’t you like to know 3 HIDDEN TRUTHS that even more “gurus” won’t tell their students about buying HUGE properties directly from banks and making similarly HUGE profits on them? I (and my guest) are exposing them today. I’m Carole Ellis. This is episode 40.
So why haven’t you already heard these 3 truths from your favorite “guru” or real estate instructor and professional? I hate to say it, but they don’t want you know because well, they don’t know either. That’s why most of them don’t do it. But today, we’ve got one of the most successful and prolific buyers of commercial real estate out there spilling the beans, and I couldn’t be more excited.
Now, if you’ve been listening to REI Today for a while, then you know about Sue Nelson already. In fact, Episode 21, “The Top 4 Things You MUST DO to Survive the Next Crash in Style While Flipping HUGE COMMERCIAL BUILDINGS for 6-digit Profits,” was one of our most popular episodes EVER. Sue is a former art teacher who doesn’t do things small. In fact, her first deal after she decided to start investing in multifamily buildings in order to stay home with her kids full-time, was a 104-unit building! You can read all about that deal in the uncut transcript of our interview in the REI Today Vault, by the way. Anyway, one of the things that I like about Sue is that she is not afraid to go big, and I do mean big. When I asked Sue how she got started finding HUGE multifamily deals that were SO GOOD that people she asked to fund them just up and basically begged to BUY them instead, she did not hold back. She divulged 3 truths about buying directly from banks that will change everything for you if you’ve been literally afraid of the big time of apartment investing because it just seemed to big to handle. Here ya’ go:
First of all, Sue said, I started off working with brokers. She explained that brand new commercial investors should “get their feet wet” by contacting commercial brokers directly and, of course, saying the right things in the right way. If you call up and ask a commercial broker to teach you about multifamily real estate, you’re not likely to develop a lasting relationship with that broker. However, if you call like a professional, explain that you fund commercial deals, and ask what’s available, you’re going to get a much better response!
Second, Sue said that new commercial investors should waste NO TIME when it comes to contacting banks directly. As soon as you can talk to a commercial broker without your heart in your throat, you better start calling up banks. If you work with Sue, she’ll just hand you a list of 1,500 bankers who already have demonstrated they’re willing to provide private investors with lists of what they’ve got available in their inventory, but no matter how you get started, the relationship building is the most important thing, Sue said. “Most banks and other commercial property owners actually WANT to sell,” she explained, noting that unlike residential owners, there is NO EMOTIONAL INVOLVEMENT when a bank is involved. And that led her to what I think is probably the most revolutionary of the three truths she told us:
Can you believe that only about TWO PERCENT OF THE COMMERCIAL MARKET is for sale directly, as in out on the market with a sign in front? But the other 98 percent, probably up for grabs if you can make the right connections and create the right offer. Goes back to that whole zero-emotional-involvement thing. Sue recommended something simple and FREE as far as that goes, too: Attend your local real estate investment association (that’s your local REIA, but the way) events! You may tailor your attendance to the commercial and multifamily events or attend the general meetings, where anyone looking to sell or buy is likely to stand up and say so. In fact, I’ll tell you personally that an investor at my REIA, GaREIA, recently sold a $7 million building for about $4 million in profit, and the whole thing happened, from landing the deal to flipping it two years later, through REIA contacts. So don’t knock it just because it seems too simple to work!
So there you have it, folks, 3 TRUTHS about SUCCESSFULLY BUYING FROM BANKS…but what about beating the next recession? Don’t worry, I’ve got you there, too. Sue explained it very simply: She said: “In my business, investing is actually a lot easier because one deal can change your life. Permanently.” Remember how Sue got to stay home with her kids doing precisely what she knew she needed to do at that time because of ONE deal that was worth literally five times her salary at her job as an art teacher? Well, the key to beating the next recession is being prepared, putting something aside for that rainy day we all suspect is coming. So hey, do TWO DEALS, and then start working on a third. When you’re making a quick say, $180,000 (yes, that is a real, recent deal and you can learn more about it by watching Sue’s entire training at www.REI.Today/IMPORTANT right now, by the way!) on a commercial deal, it doesn’t take many of those to make a huge change fast in the way you handle your finances and prepare for the future. Not many at all…
Ladies and gentlemen, I love it when Sue comes around because she is such a prolific and HONEST investor. She’s not afraid to share what she knows because she knows just how enormous her market is, and she’s also not afraid to tell it like it is. If you want to hear more uncut, uncensored information about how to actually invest successfully (and basically get started running, immediately, which we all know is important), then head on over, right now, to www.REI.Today/IMPORTANT and watch this entire training. You’ll love the information, you’ll love Sue, and you’ll love the opportunities in commercial real estate that you’ve probably never fully factored in before. That’s www.REI.Today/IMPORTANT. And if you want to read the entire transcript of our interview, then check it out today in the REI Today Vault! Not yet a member? No big deal! You can just text REITODAY no spaces, no periods, to 33444 I’ll provide you with fast, immediate access to all sorts of great trainings, news coverage, interviews, and lot more timely information that will help make your investing safer, faster, and more profitable.
And remember, when you do that, you’ll also be able to GROW YOUR NETWORK by interacting with me and your fellow listeners to REI Today… so stop by to ask questions, make comments and network with other investors across the country. Text REITODAY no spaces no periods to 33444 or head over to www.REI.Today/Vault right now.
REI Nation, thanks for listening in and always remember this:
Your best investment is your own education.
Carole Ellis is the host of Real Estate Investing Today, a popular 9-minute daily podcast focused on educating real estate investors about the important topics that will make their investing SAFER, FASTER, and MORE PROFITABLE. She's also the editor of the Bryan Ellis Investing Letter. She has more than a decade's worth of experience in and reporting on the real estate industry and, additionally, has written dozens of courses on the topic. Carole lives in Kennesaw with her husband, Bryan, and four children. She believes wholeheartedly that your best investment is always your OWN education.