There is a bit of hurry up and wait when buying a property. Once an offer is accepted I go into what I call the war room. I lock myself in my office for two or three days and put together a marketing packet. It typically takes 2-3 days. I try and get about 3,000 words or so on the page with high quality photos in addition to performing as detailed underwriting as possible. It takes a substantial amount of brain power and once I’m finally done a huge relief.
I also begin emailing my investors to gauge interest. In this case I would be raising my highest amount yet at $3.2M. Any short fall with my existing investor base determines who I need to bring into the deal to execute on it. At the same time I have to begin providing information to insurance providers, lenders, sellers, etc. to get them all started on the project. I also need to wire in earnest money. Given the shorter timeline due to the assignment all of this was happening at lightning speed.
Given the size, scope and complications I knew I needed at least one more team member. A friend of mine who runs the Stealthy Rich account on instagram that I’ve known for 5 years had always let me know he was interested in multifamily. He also was an attorney by trade which would come in handy sorting through the assignment and closing the deal on a shortened timeline. I looped him and his partner into my key principal team in order to help move the deal forward.
I reached out to my mortgage broker I had worked with on previous deals. He encouraged us to move quickly with a lender team in Denver (where he is located) tied to a New York based lender Bedrock Capital. They gave us a very aggressive term sheet and stated that they loved the deal. We made sure they knew all the ins and outs including the assignment as that can scare folks away. They said that shouldn’t be a factor in their decision. We were rocking and rolling now.
On site inspections were scheduled and we began moving forward with our lending team. Our close date was set for October 30th. We had to move really fast.