Mastering Multifamily: The Art of Raising Money and Building Relationships with Abbas Mohammed

Abbas Mohammed is a successful real estate investor who made a name for himself in the multifamily sector. His journey began at the age of eighteen when he entered the real estate industry as a residential agent. Though he initially struggled, Abbas soon found his footing and rapidly rose in the ranks. Within just four and a half years, he earned a spot as one of the top 15 agents in the country, working under REMAX and managing a team of 25 virtual assistants. With his residential business flourishing, Abbas faced a new challenge – how to effectively invest the surplus cash generated from his sales. Initially, he considered building a single-family portfolio. However, upon closer examination, he realized that he would have limited control over the value of these homes, which largely depended on external factors such as interest rates and affordability. Sensing potential pitfalls, Abbas decided to explore other investment options. After thoroughly researching various avenues, Abbas stumbled upon the world of multifamily real estate. Intrigued by the numerous advantages it offered, he quickly made the bold decision to skip single-family investments altogether and dive straight into multifamily. His first venture involved a 64-unit property, a leap of faith that would prove to be one of the best decisions he ever made. Since then, Abbas Mohammed has continued his successful journey in multifamily real estate, leveraging his expertise and experience to further expand his portfolio. His story serves as an inspiration to aspiring investors, showcasing the rewards that come from strategic decision-making, calculated risk-taking, and an unwavering pursuit of success in the real estate industry.Show more

Connect with Abbas Mohammed: https://modelequity.com/invest-now/

Key Topics & Bullets:
Challenges in Raising Money for Real Estate Deals
- Difficulty encountered by raising money for real estate deals
- Concerns about using other people's money and the associated risks
- Positive outcome of a deal with a 29% increase in NOI

Building Relationships with Brokers in Multifamily Real Estate
- Strategy of targeting newer brokers on teams rather than top brokers
- Being omnipresent, active on social media, and diligent in the deal process to establish trust
- Following through on promises and avoiding unnecessary changes or renegotiations

Scaling and Growing the Business through Hiring
- Significant growth of the team
- Tripling business income in 2020 and again in the following year
- Realization that delegation and hiring people with different skills are essential for growth

Advantages of Investing in Multifamily Properties over Single-Family Homes
- Difficulty in buying single-family homes due to tenant and maintenance issues
- Trend of people selling single-family portfolios to invest in multifamily properties
- Advice to think bigger and ramp up production in real estate investing

Timing and Market Considerations in Multifamily Investing
- Acquisition of first multifamily deal in late July 2021 and subsequent $30 million deal in December 2021
- Belief that 2023 will be a good year for investing due to decreased asset prices and less competition
- Mistake of wasting 6 months looking for deals during unfavourable market conditions

Choosing the Right Market and Building Relationships
- Focus on choosing the right market over the right property in multifamily investing
- Sourcing off-market deals and gaining an advantage over other buyers through broker relationships
- Consideration of factors like population growth, job growth, income levels, and landlord-friendly laws when choosing a market

Building a Scalable Business through Systemization and Delegation
- Implementation of cold calling to generate leads, aided by a virtual assistant
- Expanding the team with a hiring manager, training manager, salespeople, and an agent
- Transition to a nearly 100% passive business through delegation and hiring

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"You can invest 10,000 hours and become an expert or learn from those who have already made that investment." - JD

TIMESTAMPS
00:00:00 reimastermind.net
00:02:38 Choosing market, building relationships, sourcing deals.
00:06:11 Build relationships by being trustworthy, diligent, communicative.
00:10:45 Ebook adds value, successful in getting investors.
00:12:48 Single family harder, multifamily recommended; tax benefits.
00:18:49 Vet sponsors, ask tough questions for deals.
00:23:01 Delegate and hire to grow your business.
00:25:59 Scaling business through strategic hiring and delegation.
00:29:34 Outsourcing led to success; now hiring locally.
00:35:23 High-level earners focus on their strengths.
00:36:28 Think bigger, find bottlenecks, increase volume.