Ep #461 – Tim Bratz – How to Find Multifamily Deals

  • $4 Million in 48 Hours
  • Proximity is Power
  • How to stay motivated
  • Wealth is like sunshine
  • Finding Multifamily Deals
  • The Men Who Built America – series
  • Drilling and Refining
  • Bird Dogs
  • The $1.5 Million Dollar Email

To find out more about our guest click here.


Full Transcript Below


Ep #461 – Tim Bratz – How to Find Multifamily Deals – 2020 Edition

Rod:  Welcome to another edition of How to Build Lifetime Cashflow through Real Estate Investing. I’m Rod Khleif and I am thrilled you’re here. And I’m super excited to re-interview my good friend Tim Bratz. Now Tim, if you don’t know Tim, we interviewed him before and the reason i actually brought him on the show the first time was I was got caught up in a Facebook thread that he showed up on my Facebook and he’d raise like, I don’t know how much money in days but

Tim:  Four million in 48 hours

Rod:  How much was it?

Tim:  Four million in 48 hours

Rod:  Four million in 48 hours. I’m like, hell, I got to get this guy on the show. And so we became friends. He’s now a member of my multi-family boardroom mastermind. He’s up to 3,900 doors and then some and in them at an incredible equity position. He knows how to find good deals and so we’re gonna have a lot of fun today. Welcome brother!

Tim:  Hey man, I appreciate you having me again and always great to chat with you. Appreciate all the value that you always bring Rod. So, excited to be here man.

Rod:  Thank you brother thank you. So you know you’ve got kind of a cool story. Why don’t you just take a few minutes and I mean it’ll be a little redundant because you said it before on the first episode but just bring people up to speed on how you got started, why you’re here, and why you love this business and we’ll go from there

Tim:  Yeah I mean, yeah high level, I went through college when the market was going gangbusters before so 03 to 07. Everybody said, if you want to make money, get involved in real estate right. So as a money motivated kid at 20 years old, I decided I wanted to get involved in real estate. So I moved out to, I’m from Cleveland, Ohio. Originally moved out to New York City and I got, I thought you got involved in real estate by becoming a real estate agent. And so I became a real estate agent and worked for a commercial brokerage doing leasing on retail and office spaces and brokered a small deal. And I looked at the numbers and how much the landlord was making over the next 12 years on that lease term. And I was like, I’m on the wrong side of the coin. I should be owning real estate not brokering it. And so, I moved down to Charleston, South Carolina. After that, decided I want to be an investor and you know went through that whole analysis paralysis phase and trying to learn everything and signing up for all the seminars and all the systems and all that stuff. And just realized, I needed to pull the trigger on something. I need to go and buy something. So I found the cheapest house on the MLS and called up my credit card company, had to increase my credit limit, and then I got, I actually bought that house on my credit card with a balanced transfer check. And so, that was a little duplex and it was a dump and i put lipstick on a pig and it was still a pig, just a little bit prettier of a pig and, but I made 14 grand in about 90 maybe 120 days on that deal and it was my first deal ever. It was 2009. It was after the market crash. I’m a punk 23 year old kid at the time and I was like, man, something’s up right. I’m making money and everybody’s telling me run the opposite direction. So then you get into like the wholesaling right and then you get into the HATV flips that kind of stuff. And I started buying and holding like rental properties, single family and some small you know duplexes, quad plexus, that kind of stuff. And I just like the scale and I like that if I’m going to flip up property, I like that I’m flipping rental properties because it’s still generating revenue right. If I don’t sell it, I don’t really care because it’s still pretty good income covering all the holding costs and everything. So did that and then I fell into my first apartment building in late 2012. And so

Rod:  Where in?

Tim:  Cleveland, Ohio. So I got engaged. My girlfriend is now my wife, moved back to Cleveland. She’s from Cleveland and you know that’s at the bottom basement of the market. So I bought this eight unit building for thirty thousand dollars in a C-class area of Cleveland

Rod:  Wow

Tim:  Put some money into it but it yielded a 33% cap rate. So I mean you know that’s pretty good and I just ended up doing it again right. And so, I didn’t have a lot of money so I just kept on trading up, trading up, and trading up. And had some business partners and that business partnership you know essentially I got us up to about 140 units and then it was just kind of not balanced out from a standpoint of who was contributing to the partnership.

Rod:  I could have picked that one. Guys, those are you listening, just from hearing a few minutes of Tim, who do you think did the most, had the strongest work ethic and did the most work in that partnership? Same damn thing has always happened to me in partnerships as well. Now luckily now I’ve got a partner that might work harder than I do actually, Robert, but you know it’s funny I want to continue to hear your story. But it’s funny there’s a couple of, there’s some real parallels because I started out as an agent too. When I was 18, got my broker’s license and I bought a house on credit card as well. So it’s just kind of cool to hear that the same the same stuff. So please continue, so that partnership obviously didn’t work out

Tim:  Yeah so you know it was one of those things, spent three years, four years, almost building up this portfolio and I’m like, I’m liquidating 140 units like I’m not going to start all over the world’s crumbling and it was one of those things man where it’s like, the door closes but like three more open up you know and just kind of the universe responded and when I had that weight off my shoulders, it just opened me up for so much more opportunity. So in August 2015, I started building my current portfolio that I have today and it just, and I joined a mastermind. Not necessarily yours but I joined a mastermind but that’s why I believe so much in masterminds and right. So I’m a member of your mastermind and several others because I think man that like parallels so well with

Rod:  Proximity is power brother. Proximity- who you hang out with is who you become. Now you know, if you’re going to play tennis, do you want to play somebody better than you or somebody worse than you? Obviously better and that’s how you know rising tide lifts all ships yeah

Tim:  Yeah

Rod:  Awesome

Tim:  And so you know I joined masterminds and got involved that way and it just every time I went out to an event like a mastermind, it always, it was like a quantum leap forward. And I just jumped that much more forward because I think what a lot of people don’t realize Rod is like, you get to different levels of business, you’re like, if I could just make it to that level, I’d be all set. Well there’s another level of problems there too right like there’s another level of hurdles and obstacles and you’ve got to be around smart people like you and the other guys in the multi-family boardroom that can offer insights and offer intel and how to get past and push through that faster than me trying to figure it out on my own right. It’s gonna cost me time and more money than just making an investment in a mastermind. So that’s always been very very powerful and you know got me to where I am today

Rod:  Yeah and you know there’s always another level. I mean we’ve got a guy in there you know now with 20,000 doors, another one was 17,000 doors. There’s always and there’s you know and then you’ve got guys with you know two three billion dollar portfolios. And you know and so there’s always another level and you wouldn’t sit still at a particular level anyway neither would I you know it’s happiness comes from progress and growth it doesn’t come from reaching a goal it you know if it was, you need the goals and you know, in fact let’s go there for just a minute before we get into the real estate stuff. Talk about how you stay motivated in your goals because I don’t think we talked about that on the last call and I’m just curious what drives you and you know how often do you write your goals just talk about that whole area of your life

Tim:  I think it’s a great topic

Rod:  Okay

Tim:  You know I think when you’re going through different levels of life or different levels, not levels, when you’re going through different phases in your life, there’s different things that motivate you. And early on, I told you I was a money motivated kid, I don’t think there’s anything wrong with that. I think society kind of shames that now. But there’s, I don’t think there’s anything wrong with being money motivated as long as you’re using money for the right purposes right. It’s not the love of money it’s what you can do with money that’s noble. And so that was always the money was a big thing. I think once you get to a level where your basic needs are met, you got food on the table, and a roof over your head, and clothes on your back you know I’ve studied a lot of personal development just like you have Rod on you know happiness and all that kind of stuff and they say hey it doesn’t matter if you make 75 grand a year or 75 million dollars a year. Once your basic needs are met, there’s no difference in level of happiness. Now it’s up to you. And when I got to that point, I started just kind of reflecting and thinking like, where do I get fulfillment? Right. Like now that I’m there financially, where do I get fulfillment? And I like the impact piece right. I like paying it forward. I like creating a ripple effect. A lot of what you’re doing is a big inspiration for me too in that you know if you can be a leader of other leaders and imagine how the compound effect that sets in and how many people’s lives you can impact and I truly believe that wealth is like, it’s like sunshine right like there is no limit to how much there is and you getting sunshine takes zero sunshine away from me. So that’s the truly the abundant type mindset and so I love just you know sharing, coaching, mentoring, educating. And that’s a big big piece but… go ahead

Rod:  No, sorry. That’s what drives me too buddy and you know I love it. Please continue.

Tim:  No, I was just going to say like the achievement piece right like that’s I think for some of us like the achievement and just seeing the numbers grow it’s not really because you need more it’s just because I don’t know there’s that growth element where if you’re not growing, you’re dying right. If you’re not ripening, you’re rotting and so just pushing the envelope and what I love to see is other people who are like I know I’m made for more. If this kid from suburban you know blue collar Cleveland, Ohio can do it, I know I can do it right. Like that’s a cool testimonial and helping people kind of see outside of, or more than what they can see themselves as is a big driver for me

Rod:  Yeah no that’s really rewarding and so, do you have any favorite quotes that you like anything and then we’ll move into real estate but any, anything that you know I see behind you on the wall says “you’re best”. So you’re focused on being your, oh “be your best” I love it. I mean that’s kind of like that’s kind of like my thing that’s how I sign off on all my like if I do a Facebook live or it’s on my email signature. And you know, I think the reason for that is you know it’s not like do your best because that’s an element in time. Being is continuous all the time

Rod:  Owning it

Tim:  Yeah owning it 100% and it’s not “be the best” because there’s always going to be somebody who’s at another level. There’s always going to be somebody who you’re going to start comparing yourself to. The only person you can truly compare yourself to is yourself. I think right as long as you advance from where you were 12 months ago or 12 days ago or 12 hours ago. I think that is the true achievement and moving the needle forward

Rod:  Couldn’t agree more couldn’t agree more and I will tell you, I listened to Sam Zelle on Tim Ferriss’s podcast. I’m not sure there’s another level beyond that one on the real estate front but anyway that probably is there probably is but, no I love it. I love it.

Tim:  The Catholic church

Rod:  Yeah there you go, there you go. Okay all right there you go. So let’s drill down on some of the deals because, in fact let’s talk about how you find deals because we’ve talked about that at the mastermind and you’ve got these unique ways of having people you know bird dog deals for you and things of that. I mean now you’re in the larger assets but you know maybe for those that haven’t done it yet, can you share some of those strategies that you’ve utilized. I mean you’ve totally mastered Facebook and you’re kicking my ass on Facebook but tell me you know some of those strategies and things that you’ve done because they’re pretty cool

Tim:  Yeah, well you know I got some philosophical type thoughts on it but I’ll give you some actual strategies and stuff

Rod:  No, you start with the philosophy. You know we went there with the motivation first. Start with the philosophy.

Tim:  So you know have you ever seen, oh yeah you did because I know I posted on it and you were like oh man I gotta go watch that- The Men Who Built America

Rod:  Yeah yeah yeah

Tim:  Remember that?

Rod:  Say it again because I interrupted you. What’s the video series?

Tim:  The Men Who Built America

Rod:  The Men Who Built America, guys, write that down okay. Let me just tell you, it was an awesome, it’s about all the big titans that built this country and it was so compelling that Tiffy even watched it okay. So trust me on this. Just get it and watch it. It’s that good. Anyway, please continue.

Tim:  You can get it on you know prime video or any of those for like three or four bucks and it’s so good. And I actually watch it once a year it’s one of those things that’s kind of like, when I’m goal setting, in between Christmas and New Year’s, I always always watch that and so one of the things I caught about a year ago when I was rewatching it was, when they were interviewing or not interviewing but they were like quoting John D. Rockefeller and they said something that was pretty compelling. It said, when John D. Rockefeller you know the richest man in the history of the world, his company was two percent of the GDP of America. That’s how big this guy was right. So they said nobody’ll ever be that rich again in comparative to what he was able to accomplish. So they said, he had a quote where it said, “Gamblers drill for oil. Businessmen refine it” And I sat back and I kind of reflected on that and I thought about you know that’s kind of similar to going out and sourcing deals or maybe even sourcing money. You can look at it from a lot of different elements and what I liked is, I don’t spend any money on advertising. I spend zero dollars on marketing. And I’m going to give you some strategies on how i found some deals earlier on but now what I do is I educate and I let other people go out and bird dog deals let them go and drill for oil right. If they’re drilling, they might hit it big. If they’re drilling, they might miss right but they’re the ones out spending money but at the time and then what they need to sell it somebody. So let me refine what I’m really good at which is refining oil or the business operations and the asset management aspect of things let them go out and find the deals. They can bring it to me. I know if it’s a good deal. I don’t spend any money on marketing so it’s a sweet setup for me, for them, they get a big payday or even equity in the deal long term in perpetuity. So it’s a good deal for them, it’s a good deal for me. We can just focus on refining oil, refining buildings, refining commercial assets, and let other people go out and drill for them. And so that’s really been my philosophy over the past year, year and a half of doing this

Rod:  Love it love it yeah we bought a thousand doors last year with our students as well. I mean it’s

Tim:  I love it

Rod:  You know it’s silly not to and everybody wins and you know same same dynamic. Well let’s drill down on some technical stuff now. We’ll get out of the foofy you know and the analytical. Let’s satisfy the analytical people on the call and talk about some brass tacks. So Facebook. Talk about some of those cool things you’ve done on Facebook, the posts you’ve made, and you know I’ve actually seen some people model it as well. I’ve seen some people try to throw those into my big multi-family Facebook group. We don’t allow the promotion so I got to delete them but yeah talk about it

Tim:  No, I mean early on I didn’t even know the power of social media. Early on, I just kind of again, I was in the coaching phase. My mom was a teacher and I think being a teacher is an amazing, noble kind of thing. If there was more money in it, I probably would do it. But I want to teach and educate in a different manner and you can do that with real estate. So I always just kind of like hey let me walk around this apartment building that I’m going through. Here’s how I found the deal, here’s what I bought it for, here’s what you know the refinance is going to look like here’s what the NOI is going to be and I just kind of broke down the deal and every time I did that, and I talked about a deal, that’s what really kind of gave me some momentum on social media. People would be like, dude that’s amazing, how you doing that? Hey, are you looking for investors? Hey, I have this deal, can I sell it to you? Hey can I buy a deal from you? Can I join venture with you? Can I invest with you? you know will you coach? Do you mentor? All that kind of stuff and all these different things started coming from that so

Rod:  Just from going through an asset and talking about a deal, talking about what the potential upside was on the deal you know the hair on it just taking people through it love it man love it. I will tell you, my most watched videos are when I do a due diligence live stream as well like that.

Tim:  Yeah people love it man. They love to see like how is it done right. I understand the ethereal side how is it done and that’s a big piece of it. So let’s go into like how do we find a bunch of deals. Here’s how I find deals. I come from residential so I just use the same strategies I use in residential into multi-family and commercial. So I’ll give you an example, driving for dollars, you see houses with boarded up windows guess what there’s buildings with boarded up windows

Rod:  Better believe it

Tim:  Pick up your phone and find it right just like there’s delinquent taxes on single family, there’s delinquent taxes on apartment buildings. Dialing for dollars, instead of calling like for sale by owners we call for rent by owners and I actually pick up the phone, not me but my acquisitions team does, and reaches out and says hey, I’m not interested in renting your apartment, I’m interested in buying the whole building. Do you have any interest in selling? And just stimulating conversation right and at least meeting these people and planting seeds and now might not be the right timing but realizing that this isn’t a get rich quick like building wealth is a get wealthy slow right like this is you gotta have a long-term mindset to build a lot of wealth in real estate. And so, timing is on our side right like all you got to do is keep planting seeds, making the connections, and eventually when that person wants to sell, they’re thinking about you

Rod:  Talk about your team. You said your acquisitions team, talk about you know how many people you got, what do they do, just give us a little breakdown so people can see you know how you do it

Tim:  Yeah so I actually only have one guy. I have a director of acquisitions and that’s it. And we look at 400 deals a month in order to buy one or two or our buying criteria.

Rod:  And what is your buying, hold on, what’s your buying criteria?

Tim:  So our buy box is 100 units or bigger and typically we’re in the southeast, landlord friendly states, we do a lot in the midwest also and then, 100 units or bigger, A or B class workforce areas. So I don’t care what the building looks like, we typically buy distressed buildings that are physically or managerially distressed and we typically do heavy lift. It’s usually more messed up than what you know the smaller investors can qualify for and it’s more messed up than what the hedge funds or the REITS want to get their hands dirty with. So we’re kind of in this pocket where we’re able to qualify for those kinds of deals and get financing for those kinds of deals. We’re not afraid of rolling up our sleeves and doing the work and we’re really good at repositioning on the construction side. So that’s typically our box. We don’t do anything luxury. I think luxury gets hit when the market kind of shifts and I think there’s just way too much headache in managing C-class and D-class assets. I just don’t want to do it.

Rod:  So you obviously use bridge debt right now to take down your stuff and then you refinance you know and all that. Now, are you seeing, with Covid and everything, I mean we saw the CNBC’s market is pretty much gone. A lot of bridge lenders are I mean they’re

Tim:  Totally gone

Rod:  Don’t even answer their phone right right. So Iwas just going to ask you what your, you know what’s your ongoing strategy is going to be on the fact that bridge is pretty much you know damn near non-existent. By the way, sorry, by the way guys, you know those of you in the single family space, bridge lenders is a fancy word for hard money lenders in the residential. It’s the same thing okay and wild wild west, a lot of, you got to really be careful because there’s you know a lot of charlatans in that space but it’s really dried up right now. So please answer

Tim:  The thing with bridge like there’s still bridge loans that are out there. The local community banks will still get bridge loans and these are like construction and rehab loans. And then there’s like the debt funds who actually have the money and they’re lending their own money are still around also. Who’s really dried up are these like like really the brokers right like they’re giving the loan and they’re selling the paper off and because there’s no secondary market to buy the paper anymore most bridge lenders are just gone like there’s five percent of them that are left. So we either need to go through a local bank who’s been inundated with PPP loans and that process

Rod:  Right oh yeah they have

Tim:  They’re not existence right now

Rod:  Right yeah

Tim:  And then there’s the debt funds. And the debt funds, I mean it’s truly hard money right like they got you in a headlock and

Rod:  Like eight percent interest, ten percent interest

Tim:  Yeah ten plus a point or two and you have to be at a very very low LTV. Fortunately, we have some really good relationships with a couple of debt funds who would still lend on some of our projects as they know us and we’ve performed multiple times. So they feel good about us but the other thing that we’re doing is we’re just getting creative on financing with the sellers. And so I got started

Rod:  Give me an example

Tim:  Yeah so one of the things that we’re doing right now is we’re just getting sellers to seller finance

Rod:  Really? and on large assets?

Tim:  Yeah so what I found is their price points aren’t wavering whatsoever but what is happening is they’re more open to offering terms. So if we can say, hey here’s what we’re going to do the bridge lending realm is non-existent. We’ll come in you hold paper for 18-24 months. We’ll bring cash, give you some down payment, we’ll improve the asset, if we don’t perform on it, you get an improved asset back you know if we do perform on it then you just you know

Rod:  Is this, just to get a little bit micro for a minute are these assets that already have underlying debt?

Tim:  So if there’s not underlying debt, you can get them to just kind of

Rod:  No issue there. No issue if there.

Tim:  If there is underlying debt, then we’re taking a look at more of like an installment contract for deed which is kind of like a car loan where you don’t actually get the deed to the property until you pay it off or you can do a master lease with like an option to buy at a certain price point.

Rod:  You’ve done that as well okay

Tim:  Yeah the attorneys you know that’s what they’re good for right

Rod:  Okay all right all right all right. Well that’s fascinating and let me think

Tim:  Another one of the things that we’re doing is money’s free right now right like you can get, if you’re able to get like a 60-65 LTV loan Fannie-Freddie on the acquisition, like they’ll give you sub 3% debt non-recourse, 10-15 year terms

Rod:  Fantastic terms

Tim:  It’s unbelievable right and so I’m like hey typically my buy box is I got to be all in for 65 of that stabilized value. So if something’s gonna appraise at a six cap, I need to be all in for like a nine cap and that that needs to yield me on leverage yield a nine percent cap rate. So what I’m doing is now i can go in a little bit closer to what the price point is of the true valuation. I maybe can go into seven and a half cap and I can go and bring uh financing traditional financing agency debt in place and then I get the seller to then take back as the equity investor the other 20%, 30%, 40% percent down. So we’re, we haven’t closed any like that yet but we’re having conversations and there’s one that’s real real close we’re getting under contract right now so

Rod:  I don’t think I tracked that okay. Forgive me and I need you to run me through that one more time

Tim:  Yeah so let’s say I’m getting a 70% agency debt loan

Rod:  Okay

Tim:  Ten million dollar building, I’m buying

Rod:  So you’ve got a 10 million dollar building what’s the purchase price?

Tim:  Ten million bucks let’s say 10 million

Rod:  All right so you’re gonna, you’re going to get 70% agency conforming loan on that property

Tim:  Yep yep

Rod:  Okay

Tim:  So then I’ll get and I’ll say hey seller, like it’s really really hard for me to come up to your price point with all the uncertainties and all the nonsense that’s going on. I don’t know if I can get there but here’s what I might be able to do. If you’re willing to hold back some paper, I’ll bring 70 percent of the money and then you come in and hold back 30 percent as you know either off the books kind of a thing or as the equity investor with some sort of buyout in there

Rod:  Okay

Tim:  Once I give you the three million, you’re out of the deal. But you’re secured as an equity investor in the deal

Rod:  And and okay alright

Tim:  The complication with that is you still have to bring cash. So I still have to bring three million bucks to the closing table but I can use transactional funding on that, this is all 10 million bucks and then they give me three million back to pay back my transactional funding

Rod:  Yeah I know that with confirming debt, you couldn’t put it in there as a second loan

Tim:  No it’s not a second loan. So they’d have to come in as an equity investor

Rod:  Yeah they’d have to come into the either into the GP or yeah or even in the LP slot okay.

Tim:  So there’s a little bit of trust that needs to come in with it of giving them all the money and then them funneling it back right but you can you know have the attorneys draft up some documents, keep it in escrow, and then it’s just kind of

Rod:  Interesting. Interesting. Let me know if that if you’re actually able to put that through and if the underlying lender would be okay with that that transaction be interesting to hear. So I want to talk about that in the next boardroom but I like the way you’re thinking man. See guys, do you see the way he approaches this? You’ve got to put on your problem solver hat and you know the people that can solve the biggest problems are the are the wealthiest people on the planet. So talk about I was looking for something else with the Facebook thing because you had talked about what you used to do back in the day to get people to send you deals. I don’t want it to come from me. I remember but can you, do you know what I’m asking you about? How you’d put make a post and you’d get people to bird dog deals for you and stuff? Can you, do you recognize?

Tim:  I don’t know exactly

Rod:  Well you would do, oh great I’ll just do it. I mean you would put in there, hey I’ve got a half a million dollars burning a hole in my pocket. I need to buy something right now, and you get people that would bring you deals right?

Tim:  Non-stop, it happens. It’s something that I still do and I’m like as I’m sitting on cash like right now I’m very cash heavy uh we have a bunch of cash, a bunch of investors who want to deploy capital and because of bridge lending, we’re being a little bit more conservative. We’re buying at a lower total all-in value right so because of that we’re only looking for smoking deals. So I’m sitting on millions and millions of dollars right now of investor capital that I want to deploy and so you know we sent out an email. Hey, we’re sitting on two and a half million bucks. We’re looking for deals that we can buy either cash for two and a half million or lever up to 10 million deals. So send me everything you’ve got in these states or these areas. Then they send in all the deals my acquisitions guy is able to sort through deals very very quickly. He’s able to kind of just he knows what our expense ratios are in certain markets, he knows what the cap rates are in certain markets, he knows what the rents are, he can pull that up pretty quickly. So he’s able to kind of just run through a few variables in his head and underwrite these deals in two to five minutes instead of having to plug it all into a calculator. And we make offers without ever seeing properties. So that way we can sort through deals faster and get through more deals more sooner than somebody else who has to take an hour or two to underwrite it and then they want to go out and see the property before they make an offer. We’ve already made an offer on that two months ago right so it just it allows us to get and see more deals and because we can sort faster we’re able to get into deals quicker

Rod:  Now when you make all these offers, I mean are you, I mean I would think that, how often do you back out if you make an offer like that and they accept it because I mean if you’re not even seeing the asset, do you, I would have a fear of burning broker relationships or some of these other relationships speak to that for a minute

Tim:  Yeah well I mean first of all they know that I’m a real buyer. If I say that I’m going to buy something and I’m buying at that price point, again I’m all in for 65 cents on the dollar. So particularly, if I am getting bridge debt on a 10 million value building, I’m coming in and I’m all in for 6.5 million. I’m assuming it needs a million and a half dollars worth of renovations. I’m assuming you know 10 grand a unit right out of the gate. And so I’m coming in at 5 million bucks. So I’m coming in pretty low and if they’re going to accept that offer chances are they’re pretty motivated

Rod:  Then you’re going to pull the trigger up there

Tim:  Yeah I’m going to buy it right

Rod:  All right all right got it got it okay. Well I’m just trying to think, talk about, again I’m kind of hanging on that bird dog conversation. Talk about, I remember you tell the story about how you’d have people bring you deals and there was one lady that I don’t know if she didn’t even have a car or something and you really took care of her tell that story because I want my listeners to hear that because guys I want you to get some ideas how you can make stuff start happening for yourselves. So tell that one

Tim:  So you know who do we send this email out to? When we tell people somebody that we’ve had money, I’m a residential guy from background right like now I’m known as a commercial guy but I had an entire list of all residential wholesalers, flippers, brokers, agents, and so that’s the list that I used. And what I did is I just dripped an email out and I realized it’s pretty early on. Residential real estate professionals know nothing about commercial

Rod:  They haven’t got a clue. Brokers, realtors, none of them. They haven’t got a clue

Tim:  But they come across deals that are commercial deals. And then because they don’t know what to do with them they just discard them, they throw them away. So I sent out an email a little over two, about two and a half years ago and this woman who she was

Rod:  What was the email? What did the email say first before you go on? I got 700 grand, I’m looking to buy an apartment building

Rod:  Okay got it. Okay

Tim:  It was that simple okay, I got 700 grand, burning hole in my pocket, I’m looking to buy an apartment building. If you send it to me, I’ll either pay you a commission or I’ll even kick you some equity in the deal. This woman’s a wholesaler. She had had been calling on a whole bunch of residential single-family houses. Somebody that she reached out to a week or two weeks prior had called her back and said hey I’m not interested in selling my house but I have this 48 unit apartment building that my husband and I have owned for a long time it’s you know it’s really beat up but we want to get out of it. Would you buy that? And the wholesaler, the girl goes, I don’t buy apartment buildings sorry hangs up the phone. Gets our email a week or two later, sees that oh maybe I’ll put two and two together maybe just connect them. She forwards the email to us and this woman didn’t have a car, she didn’t have internet access, she went to the library to go and send this email to us okay. And so she forwards it to us, we said, hey if we end up closing on this, we’ll pay you a one percent fee right for forwarding email and 48 units, we bought it in a probably a B maybe B- kind of an area and we bought 48 units for 1.4 million dollars with her fee some closing costs and some other stuff uh it was about 1.5 million we were, we bought it for. And then we put another about 500,000 into it. So we’re all in for 2 million bucks and we’re in the process of refinancing it actually right now and it’s looking like it’ll appraise for around 3.3 million dollars

Rod:  Nice

Tim:  So off of sending a single email to a residential wholesaler, I got a deal that ended up making me my business partners, my investors, what is that 1.3 million dollars added to our network, a small deal, 48 units right it’s not like this gargantuan property and changed her life. I gave her a check for 14,000 right. She was taking the bus to go to the library and come back and forth and she’s like changed my life right. So

Rod:  I love that story

Tim:  I think we have a duty to go out and make an impact and do business and make as much money as we possibly can so we can help other people and employ more people, create more opportunities for others. So it’s yeah pretty cool

Rod:  Beautiful brother beautiful. I just wanted to, I want my listeners to hear that one. And well listen, I appreciate you being on the show. I’m bumping up against a hard stop here. I got to go out to an asset that we’re having trouble with out in Louisiana for a few days and so I’m a little nuts but it’s great to see your brother. And really appreciate you coming on and sharing some wisdom and I know we’ll be talking soon my friend.

Tim:  Awesome Rod. I appreciate you and appreciate your friendship man. Great to be here! Thank you!

Rod:  Likewise take care my friend.