MB308: To Scale Fast in Multifamily, Partner Up – With Patrick Grimes

Multifamily real estate is a big game. And if you want to scale quickly, you can’t do it alone.

That’s how Patrick Grimes went from 0 to 1,200-plus units in under two years. 

He partnered with a senior operator to go further faster, leveraging his partner’s expertise to build a $250M portfolio in a very short time.

But how did he get an experienced investor to invite him into a deal? 

Patrick is the Founder and CEO of Invest on Main Street and contributor to the #1 Amazon bestseller Persistence, Pivots and Game Changers: Turning Challenges Into Opportunities. Patrick also runs Protomation Systems, a consulting business that contracts with machine design firms to conceptualize, design and build custom manufacturing automation and robotic systems. 

On this episode of Financial Freedom with Real Estate Investing, Patrick joins cohost Garrett Lynch and me to explain how he brought value to an experienced operator to get into his first multifamily deal.

Patrick shares his experience with the Law of the First Deal, describing how his role on the team shifted as his portfolio grew.

Listen in for Patrick’s insight on mitigating the risks of multifamily investing and find out why partnering up is the best way to scale your business and get on the fast track to financial freedom!

Key Takeaways 

How Patrick got into real estate investing

• First employer suggested keeping money in real estate
• Looking for investment vehicle other than stock market

How Patrick’s investing strategy changed after 2008

• Focus shifted to legacy and improving quality of life
• Scale with multifamily, partner to accelerate growth

How Patrick got his wife involved in real estate investing

• Invited to do Michael’s Ultimate Guide... course
• Now she creates passive investor educational content

The steps Patrick took to get his first multifamily deal

• Underwrite and bring live deals to senior operator
• Network and build relationships with brokers

How Patrick justifies the risk associated with multifamily

• Right team in place and experienced partners
• Low-leveraged debt in less volatile markets

Patrick’s pivot away from deal finder into other roles

• Drawn into existing deal by senior operator
• Add value through due diligence, operations, etc.

Patrick’s experience with the Law of the First Deal

• Started raising capital through engineering network
• 2nd and 3rd deals in quick succession (KP on $200M)

Why Patrick chose the 506(c) option

• Used to accredited investors, $100K minimums
• Allows him to market deals online

The biggest challenge Patrick is facing as he scales

• Get name out there as real estate investor
• Demo thought leadership on podcasts and in writing

Patrick’s advice for aspiring multifamily investors

• Partner up to accelerate your growth
• Find where your skills fit and bring value

Connect with Patrick Grimes

Invest on Main Street 

Patrick on Forbes

Schedule a Call with Patrick

Resources

Get Tickets for Deal Maker Live

Buy Michael’s Ultimate Guide to Apartment Building Investing

Learn More About Michael’s Mentoring Program

Join the Nighthawk Equity Investor Club

Access Michael’s Free Resources in the Freedom Vault 

Review the Podcast on iTunes

Financial Freedom with Real Estate Investing by Michael Blank 

Persistence, Pivots and Game Changers: Turning Challenges into Opportunities by Patrick Grimes et al.

Michael on Facebook 

Michael on Instagram 

Michael on YouTube 

Michael on TikTok

Apartment Investor Network Facebook Group 

Podcast Show Notes