There is a prevalent misconception out there that in order to deal with multifamily properties, you must own the properties. Nothing could be further from the truth. In actuality, control can be more important than ownership. There are a couple of areas that you can control when dealing with multifamily properties.
First, you can control the access to private money. Remember, it is about access. It is all about access. So if you can control the access to private money, you can control your own deals.
In addition, you can become an “angel agent” to other people’s deals. An angel agent does not have to go and find any deals. You can let all of the other real estate entrepreneurs go and find the deals. Let them go out and tie those properties up and then when it is time for them to come find the money, you show up.
Using the “Own Nothing, Control Everything” technique, you say, “Alright, I’ll buy your deal from you.” You get deal flow coming to you. So many people think that money is the key. You can take advantage of that belief and position yourself as the money person.
Once you know how to find the money, you can hand pick the deals. You just need to become the best friemd of the other real estate entrepreneurs in the real estate clubs and position yourself as having the money for the deals. You can then sit back and watch them come to you and you gain control. You do not have to buy the properties.
The other thing you can control is the property. You can bill yourself as the Turnaround Specialist instead of a vulture buyer and control the property. A seller is going to be put off if they see you as a vulture buyer looking to swoop in and take over the property. A Turnaround Specialist has a much better connotation.
You say to the seller, “I’m here to turn this thing around. I’m going to get you out of a jam and I’ll tell you what, once it’s turned around, I’ll even allow you a part of the action.” Now, you have a willing participant who will be eager to do anything you ask.
So you gain control of the property. You can then sell your Option to Buy or you can buy the property. You can do whatever you would like to do. If you control the access or if you control the property then you can unbridle your own innovation.