MB 119: Building Your Multifamily Resume Through Partnerships – With Danny Woodford

Whether you are looking to become a multifamily syndicator or money raiser, it is difficult to get your foot in the door if you’ve never been involved in a deal. So, how do you build a resume without any experience or capital to speak of? The answer lies in partnerships with someone who’s done it before!

Danny Woodford is a Managing Partner at Mission Bay Investments, a multifamily investment firm with properties in the Mid-Atlantic, Southeast and Texas markets. Mission Bay is focused on value-add opportunities of 100-plus units, and the firm has closed on five deals of nearly 1K units to date. Prior to real estate, Danny served in the military, working to develop the space capabilities of the United States. He holds a master’s in real estate development from George Mason University.

Today, Danny joins me to explain what inspired him to retire from the military and pursue real estate. He walks us through his initial single family business model and the AHA moment that motivated his transition to multifamily. Danny offers the details of his first two multifamily deals in Richmond, Virginia, sharing the reasons why he continues to source deals despite the challenging market. Listen in for Danny’s insight around bringing a deal to a potential partner and learn how to build your multifamily resume by teaming up with someone who’s been there!

Key Takeaways

What inspired Danny’s shift from the military to real estate

• No control over time
• Long commute, missed family events

How Danny found the time to get educated in real estate

• Designed plan with wife to replace income
• Research during commute, nights and weekends

Danny’s initial business model

• Build portfolio of single family rentals
• Fix and flips to finance renovations

Why Danny made the transition to multifamily

• Conversation with colleague at single family seminar
• Multifamily offers more in terms of efficiency, scale
• Financing more attractive (nonrecourse lending)

Danny’s first multifamily deal

• 40-unit apartment building in Richmond
• Found through broker relationship
• Purchased for $1.1M (one investor)
• Completed exterior, electrical work
• Sold for $1.5M in 1031 exchange

Danny’s second multifamily deal

• 98-unit purchased for $5.8M
• Syndication raise of $10M
• Rents $100 below market

Why Danny is finding deals despite a challenging market

• Resume of five multifamily deals (two under contract)
• Relationships with brokers, investors and lenders

The value of partnering as a money raiser

• Brought into management team
• Compensation for efforts, builds resume

Danny’s advice for aspiring multifamily investors

• Bring capital or deal to table
• Partner with experienced investor
• Go straight to multifamily

How to bring a deal to a potential partner

• Do homework on project (analysis, underwriting)
• Establish relationship with seller/broker

What Danny is looking for in money-raising partners

• Education and drive
• Experience raising money

Connect with Danny

Mission Bay Investments

Call (661) 816-0335

Email daniel@missionbayinvestments.com

Resources

LoopNet

Michael’s Products

The Ultimate Guide to Apartment Building Investing

Michael’s Syndicated Deal Analyzer

Michael’s Deal Maker Mastermind

Financial Freedom Summit

Deal Desk

Deal Maker LIVE

Michael’s Coaching Program

Partner with Michael

Invest with Michael

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

Review the Podcast on iTunes