If you want to grow your wealth, grow your network.
Vinney Chopra came to America from India with $7 as an MBA student. He worked as a full time fundraiser and built his network over the years. He started out investing in single family properties , which provided constant cash flow
He would later on realized that multifamily real estate was a powerful investment opportunity. More people were renting and as a result, the banks were more agreeable towards lending for multifamily investments.
Vinney would later decide to get his commercial broker’s license and share what he had learned about real estate. His network wanted to invest with him. As of now, Vinney has completed twenty-six syndications in ten years. Some deals have earned annual returns in excess about forty percent. Vinney owes all his success to his investor network.
Here are a few tips to get you started on the same path as Vinney Chopra.
Build Your Network
If your real estate investment strategy includes growth, you need to focus on your networks’ growth. Don’t wait, START now. Talk with everyone and let them know what you are doing. The more you share, the more practice you will get, and enthusiasm will gradually build as you find people having the same drive.
You must have investors if you want to go after larger properties. In the beginning, you want to focus on sharing your goals. You will be surprised who is interested and who has money to invest. Regular calls, sending of emails, meeting and educating your network to warm them up for eventual investment with you are the key. For this, spend at least four months working and meeting with prospective investors. You need to get the number of potential investors and get their willingness and commitment. Go to free REI groups & Meetups. Don’t forget the engage through social media, join groups, ask questions and offer input to discussions.
Build your team
Real estate is a team sport. You need to have experts that can pull-up a successful transaction. Commercial Real Estate Brokers are critical to your success. Get to know some and let them know what you are looking for. It takes time to develop a good relationship, but this is important. When you have a relationship with a broker, who knows exactly what you are looking for, they will share off market deals with you before making it available to the public. When you have identified a market wherein you can invest, get to know the local professionals.
Try to do several interviews to make certainty if they are a good fit. They can also introduce you to other off market opportunities from properties they manage. You will also need an attorney and a CPA to help you navigate your investment. Depending on the size of the property, investment and the number of investors (partnership to syndication) will determine the level of professional services you will need. An experienced mortgage broker will help you navigate financing the balance. Depending on the property, the team you have in place and size of the mortgage, will determine the loan programs available to you.