THE ULTIMATE INVESTOR GUIDE

THE ULTIMATE INVESTOR GUIDE Everything You Need to Get Started in Multifamily Investing 1

Sterling White 2

All rights to this book are reserved. No permission is given for any part of this book to be reproduced, transmitted in any form or means; electronic or mechanical, stored in a retrieval system, photocopied, recorded, scanned, or otherwise. Any of these actions require the proper written permission of the publisher. Copyright © 2020 (Sterling White) 3

Disclaimer All contents of this book are given for informational and educational purposes only. The author is not in any way accountable for any results or outcomes that emanate from using this material. Constructive attempts have been made to provide information that is both accurate and effective, but the author is not bound for the accuracy or use/misuse of this information. 4

Table of Contents About the Author ......................................................... 7 INTRODUCTION Before You Get Started ............................................. 9 The Two Types of Mindsets in the Industry ........ 11 Think About the ‘Why’ ............................................... 14 CHAPTER 1 Stepping into The Lingo ............................................ 16 The 80/20 Rule ........................................................... 17 Cap Rate ........................................................................ 18 CHAPTER 2 Seven Steps to A Multifamily Acquisition ............. 28 Goals ............................................................................... 29 Education ...................................................................... 30 Investment Model ....................................................... 32 Team ............................................................................... 32 5

Market ............................................................................ 34 Criteria ........................................................................... 35 Marketing ...................................................................... 37 CHAPTER 3 Deal Case Study | Garfield Place Apartments ....... 39 Finding the Deal ........................................................... 40 Negotiations .................................................................. 40 Structure with Investors ............................................ 41 Renovations ................................................................... 42 The Sale .......................................................................... 43 Lessons Learned from My First Apartment Purchase ........................................................................................... 44 CHAPTER 4 Overall Lessons ............................................................. 45 6

About the Author As a multifamily investor and entrepreneur with over ten years of experience in the Real Estate market, Sterling White focuses on value-added apartments in Indianapolis and various other markets in the Midwest. He has a great deal of involvement in capital raising with over $11.5M in equity raised for his own deals, and current portfolio valuation is just over $18.9MM comprising multifamily apartments. Sterling is also the founder of a Real Estate company, Sonder Investment Group, where he has not only devoted all of his time to but has also received the rewards by having just below 400 units.   One thing that has got Sterling White going is his passion for uplifting others, and this is the very reason why Sterling has been featured as a special guest in so many industry-related talk shows, podcasts, and general interviews. 7

He, as a result of consistency and passion, has played a significant role in podcasts like BiggerPockets Podcast(Episode 308) , which he has been a top contributor to Biggerpockets since 2014, and hosts his very own podcast, The Real Estate Experience Podcast. Asides from that, Sterling White reveals top secrets to getting more from the Real Estate market in his book, From Zero to 400 Units, as well as in his YouTube videos.  Sterling had an uphill battle growing up in an environment that was outrightly chaotic, and he believes that this is the reason behind his love for Real Estate. He also hopes to recreate his childhood environment by replacing them with a calmer and more peaceful environment, where people would live without fear. And he strives to help the newbies in the Real Estate industry and investors already in the business to achieve more from the Real Estate market. More importantly, Sterling hopes this book would be of great help to whoever flips through the pages. 8

INTRODUCTION Before You Get Started There's something I've always encouraged people to do before they even think about getting into the industry. I would love to share that with you because I believe it puts you in an ideal mindset, even as a newbie, in the industry.  The Real Estate business, just like any other business, has its ups and downs. It isn't always rosy, as you may see on TV. It is still best to get prepared for it before you 9

venture into it— and that's where this guide comes into play. Getting into the industry as a single-family or multifamily investor or any other sector entails that you first work on your mindset. Not to sound cliche, but that is the first thing that gets you 90% prepared for the business. The reason is that in the world of multifamily investing, only the persistent and disciplined prosper in the industry. And this is because so many people had tried it out and stopped halfway through it. Most people gave up way too early because they had some limiting beliefs. Some thought that only the rich are successful in the business; others believed that they had to get the right connections before they jumped in because they wouldn't be able to make it on their own or even need a large amount of cash. As someone who has some experience in the business, I know that these beliefs are false and misleading, because I overcame them all to get into the game. And anyone who has these beliefs would remain stagnant in the industry. 10

The Two Types of Mindsets in the Industry Recently, I made a video that was uploaded on my YouTube channel. This video compared the mind to a thermostat, where our mindset is measured positively and negatively in degrees. The two mindsets I have found to be prominent in the industry and other industries are the abundance and scarcity mindsets. The Abundance Mindset The abundance mindset simply involves staying positive and believing that even if this deal doesn't work out well, there are so many other deals that are still available. This mindset entails knowing that there’s another opportunity just around the corner. A person with this mindset understands that the industry is filled with vast possibilities, and this person knows how to strategize by 11

looking at lots and lots of deals to see which meets their needs.  And this is the best mindset for anyone in the industry. It is appropriate for every investor— not only in multifamily investing— to know that if a deal doesn't seem profitable, they still have the right to pass on it. You have to understand that there are dozens of opportunities out there, so from personal experience, it’s best to move on from a sub-par deal until you find the one that works. Patience pays off. The Scarcity Mindset Unlike the abundance mindset, people with this outlook tend to cling to every single opportunity simply because they believe that all other options have been taken. In the Real Estate business, you have to learn to go over so many deals to determine whether the deal is right for you or not because when you focus on a single contract and believe that there are no other deals available, you 12

you or not because when you focus on a single contract and believe that there are no other deals available, you only end up stunting your growth and putting yourself at risk in the business. As an example, there was a 120 unit in Cincinnati, OH, which during due diligence, I discovered that all the roofs at the property needed to be replaced versus simply patching them, which increased our rehab budget significantly. After these findings, we went to the seller and requested a price reduction, which was denied, and we ended up trying to make the deal work by being more aggressive on the numbers because we were in a scarcity mentality. At that point, I knew it was time to move onto another deal because it would have been challenging to execute on that new business plan. 13

Think About the ‘Why’ Aside from your mindset, thinking about the reasons why you want to get into the Real Estate business is key. And for this, I will take you briefly into some main drivers behind my passion for the business.  Back in my childhood days, my single mom, my brother, and I lived in an environment that most labeled the hood. I can remember quite vividly, on one occasion, my brother and I had to get down on the floor to avoid bullets because of all the shootings in my neighborhood every other day. And another situation where my brother and I were eating dinner at 5 or 6 years old, and as soon as we left to go upstairs and play, a stray bullet came through the back-patio window where we had been sitting. So, he or I may not even be here today. I can say that I drew the majority of my motivation from my childhood memories virtually. It served as both a 14

reminder and an inspiration, which helps me keep moving. It was the drive, the force, that I always had to go on and make the best out of what I was given and not make excuses. So, why are you pursuing to get into the industry? The vital thing to note here is that you don't have to only depend on the reasons why you are starting. In my case, my perspective was that I didn't only want to recreate a better environment, I was also willing to do whatever it takes (in an ethical way, of course) to get what I wanted, and I can humbly say that I can see the results of my persistence, hard work, and positive or willing mindset. So, ponder on the reason(s) why you are taking this journey, and ask yourself if you are willing to do everything it takes to overcome obstacles as you get going. If you are ready, then you can crush it, but for now, read intentionally! 15

CHAPTER 1 Stepping into The Lingo As with any business, there are always tons of new terms, jargon, lingo etc. to learn when you are just starting. It's just like learning about electricity, where the whole concept of electricity takes you deeper into the world of electric power, current, voltage, etc. The Real Estate industry is not left out with its tons of terms for each concept. The terminology is there to help with effective communication among individuals in the industry; they aren't there to confuse anyone, but to get on the same page. One of the critical factors to help avoid being overwhelmed is to focus on the lingo needed to get your foot in the door versus everything. I personally leverage the 80/20 principle as a way to narrow my initial education to the key 20% of lingo that is used 80% of the time. 16

The 80/20 Rule The 80/20 rule, also known as the Pareto Principle, has helped many entrepreneurs (including myself) and leaders because it is an essential principle for goal setting, execution, and time management in business. Pareto developed this Principle. And the general concept of this principle is that 20% of your input results in 80% output. For a better understanding, look at it this way, the tremendous (80%) effect of any circumstance arises from 20% of the causes, so 20% of your actions make up 80% of your results. Pareto further got insights that the 20% causes resulted in 80% effects in his later observation of the economic stance of Italy.  Pareto discovered that 80% of the assets in Italy were managed and owned by 20% of the people. Application of the 80/20 Rule This principle can be applied in all areas of life, in my 17

opinion, not only in business, and it deals with the expectations you set for yourself and how your time is adequately managed to achieve those goals. As a Real Estate investor, asking yourself what your 20% is. This is because the 20%, which ends up yielding more results, are the essential things to keep doing.  One common mistake most newbies make is that they waste their time on things that are unproductive. As one final example..If you were to learn a new language. A best practice is to start with the 1000 most used words vs. trying to learn all the vocabulary at once, as the majority of it you will rarely if ever use. Here’s common terms to hone in on as you get started in multifamily. Cap Rate Cap Rate, also known as Capitalization Rate, is a key indicator because the cap rate determines the rate of return (profit or loss) and one of the first numbers looked at when analyzing a deal. Thus, the higher the capitalization rate, the higher the return on investment 18

tends to be. And that is why most real estate entrepreneurs prefer to invest in apartments with higher cap rates. If you are going to venture into the world of multifamily investing, then this is a term that you will come across frequently. Simply put, the Cap Rate is the net operating income divided by the price you’re paying for the property or market value of a particular asset. The formula is: Capitalization Rate= annual net operating income ÷ price (market value) However, not every investor calculates the capitalization rate the same way, so it is advisable to confirm how the cap rate was calculated before moving further especially if the deal was sent from an agent. 19

Net Operating Income Understanding the Net Operating Income (NOI) gives you a clearer picture of the bottom line on an investment property. In simple terms, Net Operating Income is the yearly income produced by an income- generating property when all the revenue brought in from operations has been considered and subtracted from all the expenses incurred during the operations. The formula for NOI is simply the subtraction of all operational costs from the total income generated in the operations of a property. When considering the NOI of a property, you must remember that the operating income includes all sources of revenue for the property minus vacancy, bad debt, concessions, and it is also significant to note that the property's revenue is not only derived from the rental income; there are also other sources of income for the property. 20

And these sources include: Service charges Parking fees Laundry machines Vending machines Conversely, the operating expenses include all the costs incurred for maintaining the property. These expenses consist of all except the debt tied to the property. Some of these expenses include:  Utilities (paid by owner) Property tax Insurance Payroll The NOI allows you to reverse engineer to be able to determine the value of a property. As an example, if it’s a B class property in a desirable location that normally trades (another term for sell) at a 6 cap. And the NOI over the last 12 months was $300,000; then you take $300,000(NOI)/.06(Cap rate) =$5,000,000(value). 21

Cash-on-Cash Return The cash-on-cash return is one of the key terms I personally focus on considering that I am a cash flow investor; it is one of the most important figures to consider in the Real Estate world. With the cash-and- cash return, you, as an investor, can get a clear picture of what you earn on the actual cash you have invested in a deal. Cash on Cash Return = Net Operating Income / Your Total Cash Investment Gross Potential Income Gross Potential Income (GPI), also called Potential Gross Income is the sum of all the rental earnings that a unit can generate when it is completely rented. The importance of the GPI to real estate investors is that it enables investors to estimate the potential gains of an investment. 22

Gross Operating Expenses This is the sum of all the costs that go into the maintenance, repair, and management of the property. Real Estate investors consider this and how it affects the cash flow. Cash Flow Cash flow is the profit that comes monthly when all the income has been collected, and all operating expenses have been settled and after keeping a specific amount of money for future repairs. The cash flow is one of the ultimate goals of every real estate investor; all investors strive to generate a passive income through their cash flow. And as a creator of more business opportunities, the cash flow is pretty significant because it enables investors to reinvest their profit into a new property or simply distributing to investors if performing syndication, thus, setting themselves in leading positions. 23

However, the formula for this significant aspect of the real estate industry is: Cash flow = gross rental income - all expenses Real Estate Syndication Real estate syndication is the term used to describe the execution of pooling the resources of and bringing together several different real estate investors to acquire a sizeable commercial deal. This is the way I use to purchase the assets in my portfolio. Return on Investment The return on investment or ROI is used by investors to determine if the investment in an investment property is profitable or not or worthwhile to pursue due to the level of risk.  The ROI is relatively easy to calculate when all the amounts used in the calculation are understood. However, since the return on investment is a profitability ratio, the results are always in percentage points. And the formula is: ROI = Gain on Investment − Cost of Investment/ Cost of Investment 24

Rent Roll This is a critical document that shows the history of rental income; it indicates the rent collected and the rents due for collection. This document varies in data depending on how the property management either or owner pulls the information.  The following are some details included in a rent roll: Unit number: This should match the unit number on the lease agreement, such as Apartment #1 or 3A. Square footage: How large is the unit? This information is helpful when comparing rent prices to other units in the area. The number of beds and baths: This will help determine if you're collecting the fair market rent for the unit. Security deposit collected: How much did you collect from each tenant when they moved in? This amount should not include the first month's rent. 25

Rent amount owed: How much does the tenant owe each time rent is collected? Rent collected: Break down the date rent was collected, the amount that was collected, and the method of payment. Lease start date: Include the date the lease began and when the first rent payment was collected. Lease end date: Enter the date the lease ends if there's an end date or if the lease becomes month to month. Additional tenant expenses: Note whether the tenant will pay any additional expenses, such as utilities or building maintenance. Additional unit information: The landlord can use this section to write any comments about the unit, such as a scheduled rent increase or renovations that have been completed or are scheduled on the unit. 26

Trailing 12-Months The trailing 12-months, also known as T12, shows the financial transaction of the previous twelve months of an investment property, particularly multifamily apartments. The T12 is one of the vital documents along with the rent roll that a borrower would have to show a lender and requests from a seller to assist with due diligence and underwriting Debt Service Coverage Ratio DSC is a ratio of income to principal and interest payments. It measures cash flow. A DSC of precisely 1 means that equal amounts of cash are coming in and going out. A number greater than 1, like 2, means that you have positive cash flow. While a number below 1, such as .5, would mean the property has negative cash flow. Most lenders like to see a coverage ratio of a minimum 1.25, which shows you have enough income to service the debt and have positive cash left over. DSCR= NOI/Annual Debt Service 27

CHAPTER 2 Seven Steps to A Multifamily Acquisition Acquiring a multifamily property is a step up for most who are just starting in the real estate business or moving from a single-family to a multifamily investing. And for the guide, I will be giving you the seven practical steps to acquiring a multifamily property. But there's just one thing to note here, these steps are not arranged in any particular order, and most of these steps are recommended to do simultaneously. As an example, I get asked often should I start to look for investors or the deal first? My reply is simply both, which is what most don’t want to hear, but I tell it like it is.   Now let's jump right into it. 28

GOALS One of the first things to do to acquire your first multifamily property is to know what your goals are. It is essential to understand what you hope to accomplish with multifamily investing. That's why it's always best to know the reasons for any action before taking action because it helps you stay focused regardless of the ups and downs of the business. And allows you to have a target you are working towards. In my case, like you already know, I was drawn to the real estate market because of my upbringing, but that wasn't enough reason for my “success” into business. I had a host of other things that motivated me, such as using food stamps to pay for groceries in my late teens and being so broke, I had to overdraw my bank account several times to pay for gas. And when I decided to set my first goal to acquiring an apartment between 40-60 units, that’s what I was able to accomplish with my first deal because I had a target and, with it in mind, did the 29

necessary work and obtained needed resources to make it happen. So, when you think about your goals, as well as other reasons why you believe the multifamily business is for you, you are already one step closer to acquiring your first multifamily property. EDUCATION As regards education, I, for one, believe that it is an ongoing process and never ends. To avoid analysis paralysis, I think it is essential to give yourself a deadline (mine is typically 60-90 days) to get the vital initial education by using the 80/20 principle then jump in. In this case, you can give yourself a specific time to get familiar with the terms, business, and everything peculiar to multifamily investing before jumping right in. Since this guide is basically from my own experiences, I can say that something that really helped me in my early 30

days as a multifamily investor was my tireless quest for information; I can humbly say that I was swimming in the pool of knowledge. I read a lot of books, posts, and watched a lot of videos on YouTube. My best source of information was from BiggerPockets, where I had access to many other people's experiences where some would post actual deal case studies. I have posted several myself to give insights and have others learn from my personal experiences. And since I firmly believe in the notion that humans do not only learn from successes but also failures, I gained quite a lot from people's experiences, as well as books like “Multifamily Millions” by David Lindahl. Additionally, I had insights from Grant Cardone earlier material on multifamily investing. So, getting adequate education of what the multifamily business entails prepares you for your first multifamily deal. So, for now, learn from the failures(mistakes) and successes of others in the industry, get familiar with the terms, the ways the location of the property affects the business, as well as other essential aspects of the multifamily business before jumping right into it. 31

INVESTMENT MODEL When going into the business, thinking carefully about what you want to get into because there are various investment strategies. And the “right” way to invest is by using the method that works for you. However, you could invest in a real estate business through any of the following ways; House hacking Buy and flip Buy and hold The critical thing to note when making an investment choice is that all investment models have their risks and capital requirements, so choose wisely. TEAM In multifamily investing, there are so many moving parts. Your success in the industry, as an investor, regardless of how good you are, is strongly dependent on the people you have on your team. One thing I learned early 32

on is to get people that compliment your weaknesses. Personally, when it comes to numbers, underwriting, building out proformas, and operations, it was an area of weakness for me, so I found a partner to fill the gap. At the same time, I focused on my strengths, which happened to be their weaknesses.  So, assembling your team is a step to your actual acquisition of a multifamily deal, and your team should consist of; Real estate attorneys Real estate agents Contractors Accountants Appraiser Home inspector Insurance agent Mortgage professional Property manager (one of the most important roles and recommended for newbies to have on their team asap) 33

So, endeavor to build a team capable of working peacefully while bringing out the best in the business. MARKET I get asked often, “what is a market I should invest in?” My answer is it depends, as each market offers something different. If you are in a market such as Los Angeles, then achieving cash flow may be virtually impossible due to the price points. With that, you may want to consider pivoting to another market that provides it, such markets in the Southeast or Midwest. Some key indicators to look for in new markets are population growth, economic development, jobs, low property tax, and landlord-friendly. In markets such as Chicago, it can take up to 6 months to evict a tenant. And that’s on the conservative end. That is what most consider a tenant-friendly market. Your market affects your cash flow and, ultimately, affects your multifamily business deals; that is why one of the best strategies to follow is to deal with multifamily investing in markets or 34

places where multifamily properties are both affordable and get some upside on the appreciation. CRITERIA One thing about the real estate business is that there are so many aspects to specialize in. Even after having an investment strategy, you would still need a buying criteria nailed down because there are lots of buildings with different ages, units, locations, risks, rental income, and levels of appreciation. That is why having this is key. This is where the class of a property comes into play. Class A, Class B, Class C, and Class D terms were formed by real estate investors to help with good communication amongst themselves; however, some of these terms are very loosely thrown around depending on who you speak with. So, let's go deeper into these classes. The Class A property is a luxury property that is usually less than ten years old and is generally 35

located in beautiful and developed geographical areas. These properties have low vacancy rates, are professionally managed, and have the highest rent demand owing to the regions they are located in. The Class B properties are suitable value-add investments because they are usually older than Class A buildings. Also, the tenants in these properties are median-income earners. Class C properties include houses that have been built for over twenty years. These properties are found in decent locations, with generally more renters in the area. One of the characteristics of a Class C property is that it often needs renovations, and it usually provides more gain investors than the Classes mentioned above. However, there are more risks involved in the acquisition, management, and maintenance of the Class C properties. 36

Class D properties are generally the oldest because they are over thirty years old. These properties provide the most significant risk because they are mostly in areas with high levels of crime and turnover. These types of deals look good on paper; however, the execution is where most fail. Due to this, it becomes challenging to collect rental income; plus, the rent rates are usually meager. However, a distinct feature of these properties is that regardless of the low construction quality, these houses are still good sales for repositioning. MARKETING This is the final step to acquiring your first multifamily deal, and it is the most important of all the steps because, without marketing, all the other steps become pointless. We all know that in this present age, we have experienced a tremendous shift to the digital marketing world because it is faster. Presently, there are so many ways to market and find real estate deals, and most can be done with the internet, however traditional methods 37

are still very effective. So, here are the channels that I have used in marketing that have proved helpful to my team and me. Cold calls Direct mail Personal visit Utilize email marketing campaign Whichever channel you use, it is vital that you remain consistent. There’s no secret sauce. The “best” channel is the one that works by consistent action. As an example an investor reached out to me complaining they had no results with their direct mail campaign. I asked “how many times did you send out letters”. Their response was “once”. One time isn’t going to get results. Normally takes over 7 times to break-through. Follow-up is crucial. Another note is to be creative and never use the same script after the first contact. It gets boring and somewhat annoying from the owners/sellers perspective. 38

CHAPTER 3 Deal Case Study | Garfield Place Apartments After years of investing in single-family homes (closer to 150), I decided to venture into multifamily investing. Since I had gathered enough knowledge of the business, I felt like this model was much more scalable. And since 2017, I can gladly say that I have gotten 276 apartment units. And here is how my first apartment building purchase became a success. 39

Finding the Deal My partner and I developed our buying criteria, which was the purchase of apartments of 40+ units in the working-class environment of Indianapolis. So, I drove using the ‘driving for dollars approach’ around the different neighborhoods on the hunt for an apartment that met all of my needs. And after going around several neighborhoods, I found a gem of a 46 unit building that needed some updating. The first thing I did was to look up the owner(as it’s all public record). So, I cold-called him to indicate my intentions of buying the apartment, which was how the negotiations started. Negotiations My team and I requested the necessary documents, including the T-12 financial statements and the rent roll. From the papers, we deduced that the occupancy rate was only 50% and rents were under market by $100. And 40

the apartment really needed a lot of renovations; the balconies and decks seriously needed support and exterior brick repair. But aside this, the apartment basically needed cosmetic rehabilitation. We needed about $423k+ for all these repairs. So, we called several experts in the multifamily business to evaluate the figures and business plan, to ensure we were not missing anything. The response was positive, so we decided to move straight into the main deal. After it was all said and done, we arrived at a price of $900k seller financed. So, we had to put down $200k as a down payment, and the seller, in turn, carried back $700k. Terms were on a 25-year amortization with a 3- year balloon payment. Structure with Investors Since we didn’t have the funds personally we went out and raised it from individuals from our network. The whole raise was $685,000, and it was all going to the 41

renovations, reserves, fees, downpayment and closing costs. The raise was structured as debt. Investors were promised to be paid out an 8% fixed interest rate and when property is sold, 50% of the profit gained from the sale of the property is given to the investors, and the sponsors receive the remaining 50% of the profit. Renovations Our in-house construction manager was called to supervise the renovations and the rebrand, upgrade signage, resurfacing of the parking lot, and revamping the interior of the rental units. And afterward, we started work to lease out the newly renovated units. For a start, we increased the rents from $495 to $630. Here’s the scope of work: 42

The Sale Eventually, the property was sold a year and a half later; it was a total success and achieved a great return to our partners. 43

Lessons Learned from My First Apartment Purchase 1.Expect to counter offers. At first, we offered to pay $800k, but the seller declined. Eventually, we settled at $900k.  2.It is essential to have excess cash for the unexpected. Due to winter, we had to spend much more than we expected. Since then, I’ve learned that it is crucial to have more than enough cash in case there are some complications. 3.Put everything in writing. It is always best to write everything down when considering a deal. The roof on this property was damaged due to the hail storm, and it needed to be replaced, which we had in writing for the seller to do prior to closing. 44

CHAPTER 4 Overall Lessons After flipping through the pages of this guide, I’d hope you learned a thing or two about the business, and particularly the multifamily investing. However, here are some of the vital things I’ve learned in my journey overall; these are the main lessons of the guide. 45

Know Your Numbers Knowing your numbers in the business is one of the things that helps you protect your downside. Allocating for vacancy, repairs and maintenance are items often overlooked when underwriting, which will directly affect your cash flow post 4c2losing. Be sure to put in assumptions. Raise Enough Money You should have more than enough money for improvements and any other expenses that may surface. This is an essential rule of the business that I have learned. Have the Abundance Mindset If a deal doesn't work out on paper, move on to the next available one. Understand the Power of Mentorship There are so many places to find a mentor for free, utilize those sites and opportunities. This is how I got my foot in the door and compacted that individuals 20+ 46

years of knowledge into 3 years with hands-on experiences. Know Your Strengths and Delegate Weaknesses Understand what you can do correctly and what you can't. Your strengths include your skillset, so know what you can do efficiently and delegate your weaknesses to others in your team. Don’t Try to Do Everything In this business, I have learned that you can never do everything by yourself, so it is essential to develop the team spirit. Understand that Landlording is a Business Always treat landlording as a business because it is one. The way to manage a property can make or break a good deal. So, if you can't adequately manage a property, get professionals to do so. 47

Never Overpay So many investors make the mistake of overpaying to secure an investment property; it is for these reasons that I always endorse a cold call direct to the owner. Never Underestimate the Workload There are a lot of things to be done when it comes to the acquisition of an investment property, and there is even more work to do after acquiring the property. So, underestimating the workload would only make things worse; instead, get an excellent team to help you out. Your Reputation is Important If you are known for doing as you say you’re going to do, sellers would never trust you. So, build a good reputation. No More Excuses Stop making excuses and start working. You've got enough knowledge from this guide, so it's time to stop making excuses and start working. Go on to the world of multifamily investing and crush it! 48

\"When it comes to buying real estate, numbers don't lie.\" -Sterling White (317) 564-9177 support@sterlingwhiteofficial.com www.sterlingwhiteofficial.com/