Episode 78 - These rookies bought $27 million in apartments and still have their full time IT jobs

In less than 10 months, Venkat and Ramana, purchased 3 apartment buildings in 3 different states with over 500 units, for $27 million. Now, they are hooked on buying apartments. Venkat is the IT Services business. Initially, he started buying single family homes. From 2007-2014, Venkat had purchased over 20 homes. He maxed out his ability to get long term Fannie Mae home loans and wanted to learn how to scale his real estate business. He found an apartment mentor that specifically taught multifamily investing. He then found a partner with Ramana in that same mentoring group. Ramana is the IT Services business for 13 years. He had done some investing in real estate, but on a limited basis.  First transaction was in Norman, Oklahoma. Second transaction was in Phoenix, Arizona. Third transaction was in Mesquite, Texas. Phoenix seller forced buyers (Venkat & Ramana) to use their local mortgage company. After 3 weeks, their mortgage company could not deliver. Buyers brought Old Capital into the transaction. Old Capital was able to close within 43 days and with max 80% leverage and a non recourse loan.  Next deal, Tradewinds Apartments was a $15 million acquisition in Mesquite, Texas. James explains the difference between CapX and Re-Incurring expenses and why it is important when you need to qualify for the loan. Venkat relied upon his property management company to research the submarket to make sure they could hit higher rents.  What we learned: More transactions that you do, the easier it becomes to raise capital from limited partners. You can make 50 calls to new investors and explain it 50 times; or you can invite 50 friends and investors and do a recorded webinar and explain it one time with slides by explaining the benefits of investing in your deal. Being part of an apartment mentoring group can help you bring your apartment investing business to the next level.  Connect: Venkat at get2venkat@gmail.com Ramana at rmkorada@yahoo.com  To receive our FREE 15 page WHITE PAPER REPORT on the 2017 FUNDAMENTALS OF MULTIFAMILY FINANCING 101 and to learn more about upcoming events at Old Capital Speaker Series please email us at INFO@OldCapitalLending.com Are you interested in learning more about how Multifamily Syndications work? Please visit www.spiadvisory.com to learn about Michael's Real Estate Syndication business with SPI Advisory LLC

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