MB 048: How I Closed My First 22-Unit Apartment Deal in 3 Months (With Ed Hermsen)
For many of these episodes, I bring on someone who is already very successful in multi-family investing and I will continue doing so because there is a lot to learn from these people! However, I also really enjoy talking with relatively new investors...
For many of these episodes, I bring on someone who is already very successful in multi-family investing and I will continue doing so because there is a lot to learn from these people! However, I also really enjoy talking with relatively new investors about their first deal since that first deal is always the hardest, and it’s the most important step you can take towards achieving your financial goals.
This week, I welcome to the show Ed Hermson. In this episode, you will find out how Ed was able to close his first 22-unit apartment building deal just 3 months after getting started, and how long it will take for Ed to achieve his goal of $10,000 per month in passive income!
Key Takeaways
[2:26] Ed’s backstory
- Worked in Mortgage Banking for 14 years
- His commission pay structure made him nervous
- 2008 was an eye-opening experience
[6:22] Why Ed decided to stop investing in single family housing
- Not enough short-term income to justify the work/hassle
[7:36] Why Ed decided that Multifamily was a good fit
[9:36] What stops people, (including Ed), from getting that first deal done
[10:43] How Ed overcame his monetary limitations
- Put together sample deals using The Syndicated Deal Analyzer
- Sent deal packages to people he knew might be interested
[12:12] Why Ed decided to focus on smaller markets
- Less competition
[18:21] How Ed found his first big deal
- The power of property managers and why you should be nice to them
[23:21] Why paying for an appraisal on an apartment complex is usually a waste of money
- The Single Family Investing Mindset
[24:29] Ed’s advice on building an investment team
- Choose people with diversity of experience
[25:34] How you can find the time for multi-family investing while working full-time
[36:53] Ed’s advice to new investors
- Find 3-4 individuals that have skills/knowledge that you don’t have
- Start putting together sample deals with deal analyzer
[38:19] Why you should focus on building relationships with bankers and property managers (instead of just realtors)
Connect with Ed Hermsen
