MB 066: Find Off-Market Multifamily Deals – With Jason Lucchesi

As apartment building investors, we realize that off-market deals are the holy grail of our business. But we also know that you have to build relationships with industry insiders in order to access those deals on multifamily properties, and it can be difficult to cold call asset managers, hedge fund operators and associates at private equity firms. If only there was a social media platform that afforded access to a database of professionals and their contact information… Hey, wait a minute! That platform does exist, and today’s guest is here to share how you can use LinkedIn to find off-market properties and earn massive profits.

Jason Lucchesi is known in real estate as the #1 off-market property strategist. He got his start in the industry with Countrywide Home Loans in 2002, serving in the mortgage origination space. In his five years there, he worked his way from account executive to branch manager, but Jason had the good sense to jump ship at the end of 2007 and shift into full-time real estate investment. He has closed REOs, short sales, bulk packages, non-performing notes, and both residential and commercial off-market properties.

Today Jason shares the step-by-step process of connecting with real estate professionals, from initiating a dialogue on LinkedIn to closing the off-market deal. Listen and learn the ‘bank language’ you need to know to communicate with asset managers and land distressed assets for 20-30% of fair market value.

Key Takeaways

 [3:01] The types of investments Jason pursues

• 70% residential
• 30% commercial

[6:37] How Jason got into commercial investments

• Referred to owner looking to liquidate for retirement (2010)
• Leveraged private money
• Negotiated seller financing (capital gains not as high)
• Implemented renovations to increase occupancy rates

[8:36] Jason’s first multifamily deal

[10:47] How Jason employs LinkedIn to find off-market deals

• Initiate search for professionals with ‘asset manager’ in title
• Determine whether he/she works at a bank (distressed assets)
• Connect for access to contact info (email address, phone number, etc.)

[14:05] How Jason initiates contact with asset managers via LinkedIn

• Look for real estate groups the person is involved with
• Customize a message with mention of common groups
• Once invitation to connect is accepted, send email and LinkedIn message
• Initiate a phone call after a couple of days

 [18:18] The script Jason uses in dialogue with asset managers

• Own real estate investment company
• Nationwide investor
• ‘Looking to deploy acquisition capital’
• Ask about ‘assets looking to liquidate’

[19:20] How Jason works with asset managers once connection is established

• Outlines his criteria
• Signs NDA
• Asset manager sends Excel doc list of properties by state
• Receives package from asset manager once a month moving forward

[24:14] The property information typically provided by asset managers

• Appraisals
• BPOs
• Title work
• Unpaid principle balance
• Current market value
• Monthly payment

[27:00] The key strategy that has worked best for Jason

• Reaching out to agents, homeowners, or owners of record
• Learning as much about property as possible before crafting LOI, purchase agreement

Connect with Jason

Jason’s Course

jasonlucchesi.com  

Resources Mentioned

 Right Flipping Now by Jason Lucchesi

Free eBook: The Secret to Raising Money to Buy Your First Apartment Building