How I Bought A 18 Unit Apartment Building With No Money Out of Pocket

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In this video, I go through the steps of how I was able to buy an 18 unit apartment building with NO MONEY out of pocket! Useful tips and workflow inside!
Email us any real estate questions to HelpMe@DeRosaGroup.com and we will answer them on an upcoming episode!
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Опубликовано:

12 фев 2015

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Комментарии : 200

@Shelovesboony 6 лет назад

A word of advice, you might try showing the property you're discussing in future videos

@murderah17 4 года назад

A word of advice...dont give advice

@PaulHardingham 4 года назад

@@murderah17 teehee

@KustomKrosses 6 лет назад

Where I come from no one believes in this. It's considered a "pipe dream". The only person that believed in me was my mother when I did my first deal. IDK anyone with money. Growing up in the "hood" has very little perks lol

@HjeanWmsREIMBroker 6 лет назад

I feel you Ty Easy...I bought my first duplex when I was 21 years old., while working for GM, in Flint, Michigan. I went on to purchase single family homes, a four-plex, and a 6-unit apartment building. Ans lilke you, the only person who truly believed in me was my mother. Close friends, Co-workers and/or family did not get the "big picture, that I had, in the beginning.

@justinfay3011 6 лет назад

@@HjeanWmsREIMBroker even my mother doesnt believe in me. I have only myself

@JYDemir 5 лет назад

@@justinfay3011 lmao this made me laugh. Its ok bro. as long as you believe in yourself and work hard i believe you can accomplish your goals. I hope you never give up believing in yourself 🙏

@vcatdog832 5 лет назад

It provides gumption, no education is free

@Donovandoit2me 4 года назад

This is my personal page for cursing and watching twerk videos but I am a Real Estate Broker in two states. I have a separate page for Real Estate. I am really thinking about doing the Yoube to teach people about Real Estate. I come across So many people that dont know anything about Real Estate. Also the deal he is talking about is not common. In fact it is so uncommon a lot of people are not willing to work with you. He is right that if you want that kind of deal you are going to have to start building a reputation.

@koryfan 7 лет назад

You are great! Subscribed to learn more about syndications and to start doing them myself.

@DeRosaGroup 7 лет назад

koryfan thanks!

@MomentoMori769 7 лет назад

Buying right on day one makes all the difference, congrats!

@jason_v12345 5 лет назад

I love hearing these stories about 18-unit buildings that people bought for a million dollars. Out here in California, a million dollars buys you maybe a decent single-family.

@scott7731 4 года назад

Anyone can make videos in front of power meters.

@timgathers8393 4 года назад

Great video! Since this is five years old, I'd like to know how this investment is working out. Do you still own it? If you sold it, what did it sell for? Also, as the GP, what was your equity share?

@DeRosaGroup 4 года назад

We sold it for 1.5M, purchased it for 1M. Our ownership was 30%

@waffle776 7 лет назад

Great video , love your content . You should make a video on why its a good idea to do no money out of pocket deals.

@DeRosaGroup 7 лет назад

Deep Work Thanks for watching and commenting! And great suggestion!! Thank you!!

@ResetKeisha 6 лет назад

This was of great value to me. My question is how to I get my foot in the door? I have no experience in this area and I’d like to some day to commercial real estate. Do I need to become an agent? Get a certification or just attend some conferences to get my foot in the door? Thank you.

@musicandlife1 8 лет назад

How did you guarantee the mortgage? Do you make your investors guarantee the loan or do you have other assets which value meets the loan size? Or is there another way to guarantee the loan without doing either? I've read up quite a lot but that's one thing which still a mystery to me, how those who want to get into small multis can guarantee the loan if their net worth or assets is not worth the loan size. Did you have a sponsor? If so what do they charge?

@DeRosaGroup 8 лет назад

+musicandlife1 Hey there - Our investors don't guarantee the loans, we do that as the General Partner. We have 10 years of experience in the business and other assets also, so we are a good loan these days. That being said, perhaps you are just getting started and don't have a track record. One option is to start small enough that your earned income will cover the loan income requirements (maybe a 2, 4 or 6 unit deal) and build up a track record over a year or so. Be sure to use a bank that looks at the asset, like B2R Finance. Another is to enroll a sponsor as you referred to and give the sponsor some of the GP side. If you are going to be the main active partner don't give too much of the GP side away to the sponsor.

@matthewoliver5000 8 лет назад

Derosa what do you mean "look at the asset" above

@DeRosaGroup 8 лет назад

+Matthew Oliver (Sales Manager of CN) Hey Matthew - the bank has to have something for collateral, meaning something that backs up the loan, something they can take if the terms of the loan is unpaid. One thing is the asset they are loaning against. They tend to add in other additional collateral like the credit of the investor. Meaning they can come and take other things from the investor if they can't recoup their debt by taking the asset they are lending on. Loans where the investor has to personally guarantee the loan like this are called a recourse loan. On larger transactions, typically above a million, you can get a non recourse loan meaning the only collateral they have is the property they are putting a lien on.

@Vibelife256 4 года назад

Thank you for sharing such helpful information! Do you utilize an outside property management company or handle the management in house?

@DeRosaGroup 4 года назад

YW. At this point, we have many units over various states, we outsource all property management to third party vendors.

@aaronbetancourt95 5 лет назад

I’m 23 years old. I’m trying to buy an apartment complex. I don’t have much of a down payment though :/. Is there anything I can do to achieve my goal?

@hossainfamily7792 4 года назад

Aaron Betancourt you need down payment plus show of income if you are trying to get a loan

@Franco_gael 4 года назад

Look for investors brother use other peoples money but take a percentage from it. find someone to invest but you do all the work and take some of the profit make sure it is a win win for both of you guys or more if there are more investors.

@re11mike 9 лет назад

Cool video. I hope to graduate from SFRs to an apartment building someday.

@DeRosaGroup 9 лет назад

Thanks for watching Mike! I hope you do also. Make a plan and stick to it, you will get there. Take care, Matt

@rrbsol1062 7 лет назад

Derosa Group

@michaelrossi7714 6 лет назад

Great advice Matt. Thanks for taking the time to post these videos they really help fellow investors understand how it can be done

@DeRosaGroup 6 лет назад

Michael Rossi you are welcome!!

@DeRosaGroup 9 лет назад

My latest post on Bigger Pockets - In this episode we talk about how we bought an 18 unit apartment building with no money out of our pockets. Enjoy!

@LK-pc4sq 7 лет назад

I am also a member of BP. I said to some one "its not worth the time and headach to manage smaller homes...makes more sense to do one building. Would you agree?

@LK-pc4sq 7 лет назад

I live in Tacoma where rent has increased the most out of almost every city in the country. Could you help me finance a complex that had a great Cap rate?

@DeeOne88 7 лет назад

Derosa Group How do I go about buying a house without any money out of pocket in california?

@justinfay3011 6 лет назад

Been listening to bigger pockets and reading to develop myself. How did you network to get to this point? Also what podcast episode were you on? Thanks!

@AW-gk8zn 2 года назад

Hey Matt! Allie here, I read your book! Great stuff. I have only done equity deals to this point, but want to move on an 8 unit building with only debt, commercial bridge loan 12 months, 75% of purchase price 100% of construction. I need help figuring out how to borrow the other 25% plus closing costs without using the property to collateralize the loan, do you have any suggestions of where to secure the private funds and how to offer structure it?

@DeRosaGroup 2 года назад

Awesome, thanks for the compliment on the book! I hope it added some value to you. For what you're trying to do, it sounds like a pref equity structure would be the best. That way, investors have collateral against the company that owns the property, not the property itself. They get a flat rate of return on their money, and they are first paid before you get paid. Hope that helps

@johnhoward1449 8 лет назад

Hey, Matt in what state did you buy your 18 unit apartment building.

@DeRosaGroup 8 лет назад

John Howard this particular building is in Philadelphia, PA.

@tomjens2046 7 лет назад

how much do your investors get? I mean what kind of cut do you take for being a manager of their investments?

@DeRosaGroup 7 лет назад

tom jens great question. We calculate our "carve out" based on the return investors will get on their money with their share. Our target is to get investors a return in the mid teens once the property is stabilized. On this deal, our share is 30%.

@tomjens2046 7 лет назад

I like when it is simple/straightforward. Some companies have "asset management" fee, then profit sharing, then some other "fee". Why not simply have one simple cut, no need to over complicate. On the other hand they are probably thinking that they want to have some fees even if zero profits were made at some year :)

@GrailManagementGroup 6 лет назад

Thank you for posting this video. I am interested in knowing how your structured the deal for your investors. Did you agree to pay them a quarterly payment at an certain interest rate plus a percentage of ownership in the property? If so, what was the interest rate and what was their percentage of ownership?

@tonynyc7709 7 лет назад

Great video, I sell real estate in NYC and own my apt out right. I'll be investing shortly, my issue is can't seem to get a mortgage because my income is inconsistent, such is life. Your investors, it seems similar to investing in R.E.I.Ts, very interesting approach.

@DeRosaGroup 7 лет назад

Hey Tony - Syndications are similar to REITs but there are 3 distinctions - 1) they are not publicly traded meaning you can't get in and out as easily by selling or buying shares on the market. 2) the price to buy in is higher than REIT prices 3) you have to be an accredited investor to participate (this rule is changing soon). For that apartment you have, consider doing a line of credit with that as collateral. If a Home equity line doesn't work try a business equity line. Most smaller banks in NYC will talk to you about it. Good luck!

@jball3545 2 года назад

Mesej yang jelas, struktur yang jelas, mudah difahami, terima kasih

@DeRosaGroup 2 года назад

you don't say?

@LordBlackNephew 7 лет назад

What if your willing to pay the down payment out of pocket?, should you still go at it alone?

@DeRosaGroup 7 лет назад

Kevin Edwards there are plusses and minuses to doing deals by yourself but if you are just getting started I highly recommend investing with your own capital first to get a track record going.

@LordBlackNephew 7 лет назад

Derosa Group thank you for your quick response.

@hank8794 7 лет назад

This is great information, thanks for your time and efforts

@DeRosaGroup 7 лет назад

Hani Kazmi Appreciate your note! If you ever have any real estate questions please feel free to email them to us - helpme@derosagroup.com and we will answer them on an upcoming Mentorship Monday episode! :)

@joethomas3125 5 лет назад

He just said no money..Then said but used this money over here from family..Lol

@ek07305 5 лет назад

None of his money!

@kennya1425 5 лет назад

No money out of pocket.

@556nc 7 лет назад

Minus investors, do you think it would be a good idea to purchase and repair a rental property cash can or is it better to take a small loan even if you have the cash? Why?

@DeRosaGroup 7 лет назад

Michelet Fleurant it depends on the source of the loan and the source of your cash. money is so "cheap" to borrow right now, if you can get it from a bank you can't beat the rates. if its private money at 9 to 11 percent and you have the cash, use your cash. then refinance into a bank loan to get your cash out when the renovations are done.

@stevenm936 9 лет назад

Thanks for sharing. Was this a pocket listing from one of the commercial broker you networked with, or was it already listed on Loopnet?

@DeRosaGroup 9 лет назад

Hey Steven! Yes this was an in house listing with the commercial broker. It took me a while to get him to take me seriously but once he did he gives me first dibs on deals when he gets them. In my experience, once a deal gets on Loopnet it's already been passed on by the brokers inner circle and the inner circle of all the agents in his office. I rarely see good deals there but have found that its a good place to network and find an agent that is working in the area you are farming. I hope that helps! Matt

@ramseyblair40 6 лет назад

Sensi how do you put apartments on contract and what I need to do so I can pay for training with your training after my first deal because I only work twice out the week because I'm over qualified, how do I create a track record on myself with a single family home and what's I say to investors and it's slot of vacant apartments in Columbia SC with no money down

@JesusGodHolySpirit3 6 лет назад

Do not rent that is my philosophy i despise renting no offense it's a rip off for the rest of your life. Live in your car if you must because it's a rip off to rent.

@christianewing2892 3 года назад

I dont agree...

@Razntoons 6 лет назад

Very informative looking in that Direction of the discussion 👍

@karltech6694 8 лет назад

Was this building also located in Trenton NJ? I'm interested in getting into a 5+ unit multifamily soon, but I live in Westchester County, NY and the prices are rediculous. Where do you start to network to find the listings? Loop.net? Thanks

@DeRosaGroup 8 лет назад

+Karl Tech It was in Philadelphia. I use Loopnet as a networking source, a way to meet agents that are active in your target area. Typically the deals are not great because the good ones sell before they get to Loopnet. The trick is to get an agent to give you first look. If you are in Westchester I have heard good things north of you, in Albany and other post industrial towns along the Hudson.

@Drizsa 3 года назад

Hello I’m looking for some private investors in a six unit property, do you have any suggestions?

@DeRosaGroup 3 года назад

Check your own network, and of course us let Matt's book as a guide! www.biggerpockets.com/privatemoneybook

@Snruisy 7 лет назад

Great video but I have a question, how do you depreciate the apartment building, and if that brings a plus to your cash flow.

@DeRosaGroup 7 лет назад

We actually just shot a video on this that will go out for a future Mentorship Monday, thanks for asking and Stay Tuned!

@mitchell.9632 7 лет назад

Thanks for the video and channel.

@SOLERBoston 7 лет назад

What's the first steps I should take in Boston MA about buying commercial property?

@DeRosaGroup 7 лет назад

SOLER try going to www.biggerpockets.com, setting up a profile, and connecting with others in your area.

@DeRosaGroup 7 лет назад

I would get entrenched in your local network first - connect with local commercial brokers and investors to get your ear to the ground on good deals.

@realestatereality5445 4 года назад

Nice Matt

@DeRosaGroup 3 года назад

Thanks! Here's some free goodies. Just text DEROSA to 66866 for several hours of video training, articles, and other stuff you can't get anywhere else. Enjoy!

@imranhuddin 3 года назад

Hi, how do I find these commercial brokers who have these blocks of apartments for sale?

@DeRosaGroup 3 года назад

Start on www.loopnet.com

@learningtogrowinChrist 6 лет назад

Not sure if you guys are still responding to comments. How would you start working to meet with investors to try to get into another multi-family?

@DeRosaGroup 6 лет назад

Hi Ed! Absolutely, we still Monitor and respond to comments regularly. Thanks for leaving one! We have several different efforts for staying in touch with our investors, and enrolling new ones. Some efforts we do our a monthly newsletter, and Live Events. You can hear more about what we do on our website www.derosagroup.com, and we go deep dive and all this stuff in a recently released book, Raising Private Capital!

@NickC876 8 лет назад

How difficult is it to get an attorney to have lunch with you to discuss like you said the legal structure of you LP?

@DeRosaGroup 8 лет назад

+Nickie C Hi Nickie - All you have to do is ask, LOL. If you are going to do a deal then you should be willing to hire that attorney for a fee to help you structure the deal. I would look to build your network of professionals before you have something under contract so that you can move quickly when the right deal comes along!

@mrmontey911 6 лет назад

My question is how do you build your professional network in the commercial real estate (multi-family) industry? You mentioned finding someone to let you participate in open houses and look at financials for buildings that are up for sale. How do you find these individuals?

@funkydave100 8 лет назад

Hi Matt, thanks for sharing! what would happen if a person had that kind of money but had never done a deal, still do the track record and get to know the commercial real estate guys? I'll definitely be checking some more of your videos thanks

@DeRosaGroup 8 лет назад

Hi David, Great question. Liz here (Matt's wife and business partner). I can certainly answer your question so I figured I would jump in and get back to you as quickly as possible! If a person has money put aside to do this size of deal and has no experience, there are a few ways to move forward. My first question to this person would be - what is your long term goals? Do you want to be an active investor (someone doing this business full time eventually) or do you want to be more of a passive investor (invest with someone else and keep your day job). There are many paths to wealth so it depends first on this person's goals. My suggestion would be to find someone who has the track record and established relationships to mentor this person through finding, evaluating and closing on a similar sized deal. This can be someone who takes a percentage of the deal, becomes an equity partner, or simply gets paid for their time. I have seen it work more effectively if they are an actual partner in the deal, that way this person can lean on their track record in order to secure private money and traditional money. For example, we just closed on a 49 unit building. The bank we ended up working with completely vetted us out. They of course vetted the deal out before agreeing to finance it, but they vetted our track record out, our resume, other deals we have done. They are investing in the building as much as they are investing in us. So, the greatest thing this person can do if they don't have a track record is to build a track record with smaller deals first and work their way up. Or partner with someone who brings the track record to the table. I hope this helps answer your question!! Moving forward, if you have ANY RE investing questions, please send them to helpme@derosagroup.com and we will answer them on an upcoming Mentorship Monday episode!! Thanks!!

@jamelturner5959 7 лет назад

When you bring in investors how much money do you pay them back and how frequently?

@DeRosaGroup 7 лет назад

Jamel Turner we typically pay our investors once a quarter, and their payment has to do with their percent ownership and the current cash flow on the property.

@looplu 3 года назад

How old was this property when you bought it?

@DeRosaGroup 3 года назад

Built in the 1970's I think

@osmosm9751 9 лет назад

May i ask? let say you start whit small 4,5 unit aprt rite? what about if u got more money to buy 18,14 unit rite way not a 5 what u will do?.Reson why i ask im Truck driver i got money so im think about do same way just dont know how to start,buy 4,5 unit or 24 rite way.Pliz give answer if u can thank you

@DeRosaGroup 9 лет назад

osm osm Hey! Thanks for the comment. Sorry for the delay! Hit me up on Bigger Pockets, I have a bunch of other stuff out there. The link to my profile is in this videos' description. If you have that much money to start with, then you have the option to take down the bigger asset (18 to 24 units) and put a property manager on it for you on day 1. It doesn't make sense to use a PM on a smaller deal and some won't manage stuff less than 10 units, and the ones that take deals like that may not do it effectively. It also depends on your end goal. If you are looking for some side income while you continue with your day job then doing a passive investment like that may be the ticket. If you are looking to become a full time investor / landlord then you may want to manage yourself at first to learn the ropes, if you can swing that. I hope that helps! Matt

@osmosm9751 9 лет назад

Thank you so much

@joelcustodio3296 8 лет назад

+Derosa Group what are your thoughts on investing out of state, i am currently in NYC where it's way too expensive

@DeRosaGroup 8 лет назад

Hi Joel - It all goes back to management and having a local advocate. We just looked at a 50 unit in central PA and will probably be doing that deal because we have a manager in place and an investor that is local to that market! We are always looking at great deals so if you want to hear more shoot us an email at info@derosagroup.com or look us up on www.BiggerPockets.com. Take care!

@ahmedhamed1092 6 лет назад

Hey man, that was extremely beneficial. Thanks for sharing. Which state are you in?

@DeRosaGroup 6 лет назад

Ahmed Hamed We are based in Trenton NJ and this building 8s located in Philadelphia. Thanks for watching our videos and commenting!! Let us know if you ever have a question for our mentorship Monday series. You are welcome to email us at helpme@derosagroup.com :)

@DeRosaGroup 6 лет назад

We are in New Jersey

@share101 8 лет назад

How many beds and how much are renting for?

@DeRosaGroup 8 лет назад

Sohail Kaisar there are studios, one bedrooms, and two bedrooms with 24 beds total. unit rents range from 600 for a studio to 850 for a 2 br.

@share101 8 лет назад

thanks

@DeeOne88 7 лет назад

Derosa Group 850 for a two bedroom? Here in california we are paying 1,500 for a two bedroom and $800-1000 for a studio.

@personaltravelagent2204 2 года назад

I found a building I am interested in a six-unit apartment can I bring you in as the buyer I have no idea of what I am doing so if I can get you in as a partner I would appreciate it

@abdulghanibinothman 6 лет назад

The 18 units for my teams in fangtech they own the 18 units by deducting their pay with 0 interest on me the ownership titles be return to them when the deduction end.

@Drmikebuyshomes 7 лет назад

Golden Advice! God bless you!!

@DeRosaGroup 7 лет назад

Thanks Mike! And you also!

@johnvill1981 6 лет назад

hi sir, will you consider investing in Cebu Philippines ?

@DeRosaGroup 6 лет назад

John Paul Paquibot Cebu Real Estate we only work in the USA for now, sorry!

@johnvill1981 6 лет назад

its okay sir... no problem

@mattsingh87 9 лет назад

Excellent video, thank you!

@doublearbeatz8715 6 лет назад

Nice love the video

@tonyj8947 5 лет назад

Where is your market?

@CRoss-ce1xq 6 лет назад

How old were you when you got started?

@dragonflowe.n.t3819 8 лет назад

im intrested in real estate i have a multi million dollar idea with no where to start kinda this is like a dream job for me hoping i succeed i got faith in myself

@DeRosaGroup 8 лет назад

dragon flow'e.n.t a good place to get started is to get a strong WHY that you want to be in this business, outside of making money. then set some 1, 3, and 5 year goals. that will give you a bit of a compass to guide you.

@dragonflowe.n.t3819 8 лет назад

Derosa Group thanks

@griffinhenry3139 7 лет назад

I would to like own a apartment building or multi family investments. How would you suggest one get started in this area. maybe by networking or getting a real estate licence? I live in Michigan btw. Thanks for the advice.

@DeRosaGroup 7 лет назад

Griffin Henry 3 network, get out there to some REIA meetings, set some goals, and make it happen! and yes getting your license would help too

@evensfrancois1 8 лет назад

Great info. lots of Value

@DeRosaGroup 8 лет назад

Thanks, we appreciate it!

@Darkeiser.7 7 лет назад

I'd like to get into this one day.

@lolphaynes7757 7 лет назад

Khaled Miah but buying the complex would be much wouldn't it?

@jose5776381 7 лет назад

i am a beginner (dont own no real estate ) should i start with a house before an apartment and besides utube where can i learn the business

@DeRosaGroup 7 лет назад

jose cruz you should definitely start small, maybe buy a 2 or 3 unit and live in one and rent our the others. you can learn a lot about real estate on www.BiggerPockets.com, check it out!

@jose5776381 7 лет назад

Derosa Group okay thanks for the reply I will

@dominiquesummers2674 6 лет назад

How does someone write a business plan for a adventure like this?

@DeRosaGroup 6 лет назад

Dominique Summers One of the best business planning books out there is called the One Page Business Plan by Jim Horan. He has a bunch of versions but I like the original one the best. It is simple and a great book that guides you through the process of actually writing a business plan. I would highly encourage you to pick up a copy. I think you can get it on Amazon. Good luck!!

@get-out-there2 8 лет назад

what was your ROI?

@DeRosaGroup 8 лет назад

Hi Jacob - Stabilized cash on cash return is around 15%. So far our IRR has been close to 20%

@3089280288 9 лет назад

It worked because you already owned props and they felt comfortable with getting you into the deal.

@Abundantking 9 лет назад

You are correct - it's all about developing a track record!

@3089280288 9 лет назад

Matt Faircloth but if I find a good prop, then I have to go though mess. So i am looking for other avenues

@87rafaeljr 7 лет назад

Great video

@DeRosaGroup 7 лет назад

Rafael Rosado glad you enjoyed it!

@roober84 Год назад

Where please. I need

@DeRosaGroup Год назад

Go to our website we can help you do this too!!

@abdulghanibinothman 6 лет назад

How much the apartments cost $$$$

@Jordan-pd8ir 7 лет назад

For an apartment building of this size, do you need to have someone that works there? In the future I want to be a landlord but I really don't want to have to hire employees.

@DeRosaGroup 7 лет назад

Capn_Wreckz you don't have to have an on site manager (some call this a super). You should have a dedicated maintenance support team but your management company can have that set up on their side.

@cwnolimits 6 лет назад

How can I buy a 20 unit apartment complex from a family member they want $2million dollars

@galaxy198787 8 лет назад

Where u at i wanna go

@maesungarcia9258 7 лет назад

Amazing

@ishansiewdath9735 8 лет назад

where to find investor ? in MD

@DeRosaGroup 8 лет назад

Hey Ishan - We actually taught a course on how to find private money lenders and equity partners. A local not for profit had us do it and hired a video crew. The not for profit is now selling the course, here's the link: www.sjreia.org/Page.aspx?ID=Private-Money-Course There are investors right in your back yard. We get most of our investors from our local network and also from referrals from that network.

@trell4086 8 лет назад

Derosa Group

@kusemk8 7 лет назад

how much you pay the investor on the 500 k

@DeRosaGroup 7 лет назад

The investor return is in the mid-teens, so the $500,000 is making around $70,000 per year.

@kusemk8 7 лет назад

Ok am interested

@DeRosaGroup 7 лет назад

A Slave to king of Kings to hear more about our investments be sure to subscribe to the newsletter. the link is at the top of out RU-vid page or contact us at www.derosagroup.com

@DeRosaGroup 7 лет назад

Glad to hear it. To keep in touch with investments and updates from The DeRosa Group be sure to subscribe to our newsletter, here's the link: www.derosagroup.com/mailing-list/

@cvnapps51 8 лет назад

"How I bought an 18 unit apt starter pack" A) had my mom tap into her retirement and lend me the funds for first buy B) waited for mom to die and cashed in on the inherited assets C) I was born with money

@DeRosaGroup 8 лет назад

For us, it was "None of the Above". We went with D) Work hard to build up a track record of our own deals, then approach potential investors that wanted to make a good return on their money to partner with us. Repeat, tweak the process, and repeat again until we had enough investors lined up to do a deal of this size. It took sweat and time, but it was worth it. I should say that everyone knows people with money and can do exactly what we did. Here is a link to learn more about a course Matt Faircloth taught through the local REIA club. They have it priced at $297 to take it online. Check it out! ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-jpFgUWOXTuM.html

@austinluepkes5484 8 лет назад

Hi there, just curious, as a silent partner what kind of rate of return do you think a guy could make when he has someone like you manage it for him? I had a windfall as a teen and I'm 20 years old now, in college, and I wanted to get into real estate. Thanks!

@DeRosaGroup 8 лет назад

+Austin Luepkes it depends on the deal. This particular building is doing well, with a return in the mid teens. to hear more about our projects shoot us a line at info@derosagroup.com

@warrens.5933 5 лет назад

Sounded like he started with smaller properties and then leveraged that equity/cashlow to secure larger investors for his 18 unit.

@pinkgal206 5 лет назад

Lmfaooooooo at B

@yansoloextreme8 7 лет назад

Audio seems off.

@joemorrow8696 8 лет назад

Hey do you have an one on one coaching program

@DeRosaGroup 8 лет назад

Hi Joe: Funny you should ask! We actually are launching a Coaching Program tomorrow for a start date of September 1st. Many of our followers asked for some formal coaching, so we have put together a program focused on buying rental properties. We will be posting an intro video about the Coaching Program here on our RU-vid on this Tuesday. However, I can email you more information if that would be helpful. Please shoot me an email at info@derosagroup.com and I will send you over information! Thanks for asking and glad you enjoy the channel!

@joemorrow8696 8 лет назад

+Derosa Group ok well thats great man that exactly what i need more info to be able to join the coaching program and im about to send you an email also. Thanks

@guzman9011 9 лет назад

I don't understand why someone would go into a deal with a bunch of people then split the profits 8 ways? Your original cash flow will be like $6000\8= $650 😦

@MFShowtime 9 лет назад

+noe name Remember my friend "Cash is the worst investment" wise words from Warren Buffet. Its better to get cash flow generating instead of letting cash sit around to get fucked over by inflation. I would rather get $640 a month for a 10000 investment. Then having my 10,000 respectively be worth $7,200 in the next 10 years.

@DeRosaGroup 9 лет назад

+Maui AF You hit the nail on the head. It's all about the return on investment! The investor ownership of the property is based directly on how much they put in, so it's no about the dollar amount of the return it's about how much the overall deal is making which is reflected directly back to them.

@cybahman4049 8 лет назад

Cy: In a limited partnership, the general partner normally charges a respectable fee for services rendered.

@DeRosaGroup 8 лет назад

Hey Cy - normally the GP takes an equity stake so that they are tied to the profit on the deal. As long as the LP's get plenty of ownership for their cash in the deal it's a good partnership. I don't like GP's taking a fee only for putting the deal together, I think the GP is motivated to perform if they have some ownership too.

@scoleman-grant9520 7 лет назад

That's an extra income of $650 for how long...The next 20-30 years. If you can't afford to do it alone why pass up an opportunity. Save your $650 over time and then purchase by yourself....

@dennismazzabufi1158 7 лет назад

Good video and content, but does it bother anyone else how he takes those wired pauses like he needs something to drink?..lol.. he should work on that..haha

@Entrepreneurusa 5 лет назад

I got to 1.14 minute and stoped watching ,we borrowed money from family !!! What a fuck ? Is that no money down ?

@kennya1425 5 лет назад

He said, No money out of pocket.

@moisesvasquez3596 4 года назад

This video is a joke. He has family to give him money. Not very independent at all.

@DeRosaGroup 4 года назад

No family, just people who believe in me. You have these people around you also, my book Raising Private Capital tell you how to find them

@deadgame3298 6 лет назад

He lying

@TheTiltedOne 7 лет назад

I don't mean this next sentence to come off as disrespectful but you paid over $1,000,000 for a building that produces in actual profits in the the teens? Best case scenario that's $19,999. Let's pretend inflation doesn't exist... that's still 50 YEARS to get your initial investment back? On a single family home I have that I felt like I got REALLY emotional over the deal will have paid the initial loan back including all repairs and upgrades to the property in 11 years. I lose sleep over thinking about what a horrible deal I made. I have to be missing something. This seems like a complete and utter failure of a business move. Can someone explain?

@DeRosaGroup 7 лет назад

Mr CC19CC88 - we didn't pay cash for the property we laid down 25% and borrowed the rest from a bank. we are making a return in the mid teens on the money we laid down, not the entire purchase price. so that's $250,000 down and assume a conservative return of 15%, that's $37,500 in cash flow per year plus another $20,000 or so in principal reduction (mortgage balance being paid off) each year and you get a nice return that will pay back your investment in around 7 years with a stable appreciating investment. I hope that clears it up!

@TheTiltedOne 7 лет назад

Derosa Group haha ohhhh. My mistake. I'm not use to seeing people talk about mid teens speaking of percentages. I thought we were talking dollars. Didn't mean for it to come off rude. I was sitting here watching the video losing my mind like what is this guy thinking? Best of luck with your continued business endeavors sir. I enjoyed the video.

@DeRosaGroup 7 лет назад

Mr CC19CC88 no worries, no I see where your confusion came from. Glad I could clarify and glad you enjoy the videos!