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The Anatomy of a Deal

How do you invest in Real Estate?

 

 

Most people start by buying something simple, like a single-family house.

They either manage it as a tenant-occupied property, or they try the fix-and-flip because it looks sexy on TV.

I call that “accidental landlording” or being a hobbyist.

Real Estate itself is a business, and that’s where so many business owners get it wrong.

I believe that everyone has an expertise – something they do well.

You are also smart, capable and able to learn to do additional things.

But where should you put your focus?

Probably not on something that you don’t have the time to really focus on, or to learn the ins and outs of.

In Real Estate, it’s all about finding the right people – people with boots on the ground in operations, assets, and market classes that you like.

How do you find these people?

For me, that’s been 39 years in the trenches, building my Real Estate network – it takes time.

The most important aspect of making deals is having networks, connections, and insider information (which is legal in Real Estate – unlike Wall Street).

Number two is knowing which asset classes to invest in, and which markets are the best.

You need to learn how to invest in up, down, and sideways markets.

It’s very doable, but you need to understand what I call the anatomy of a deal.

It goes like this – someone has to find the opportunity.

Lead generation and finding deals is a business in itself with marketing involved.

Someone finds a potential opportunity – a motivated seller with a property that can be purchased for the right price and terms.

The next step is negotiating the deal and getting the contract to closing.

Third, where does the money come from?

You can go through banks, Real Estate sellers can finance their equity, you can buy a property subject to existing financing, you can utilize private capital, or any combination thereof.

Real estate is fantastic because there are so many ways to finance, and knowing how to navigate those options is key.

What’s the fourth part of the anatomy of a deal?

Someone needs to run the operations of managing the asset – because that’s where the income comes from.

You can rehab the property, fix it up and resell it in the marketplace.

As an investor, you can be involved by being the bank and lending money to people who are really good at doing that.

Or you may want to buy an already-rehabbed (turn-key) property with a tenant in place, and hire a person or company to manage it.

I don’t go out and do it myself, and I don’t find or close my own deals.

I have a network of experts to do that, and I just bring the capital.

That’s what Freedom Founders does.

We create those connections.

We bring in capital from the doctor side and put it together with a great network of people who are boots-on-the-ground operational.

Due diligence, underwriting, understanding the markets, understanding the structures to put in place – we create a win-win for everybody.

If you to really take control of your financial future – alternative investments are the only place to be.

To your freedom!

-David

 

P.S. Whenever you’re ready, here are some other ways I can help fast track you to your Freedom goal (you’re closer than you think) :

1. Get Your Free Retirement Scorecard:

Benchmark your retirement and wealth-building against hundreds of other practice professionals and get personalized feedback on your biggest opportunities and leverage points. Go to www.FreedomFounders.com/Scorecard to take the 3 minute assessment and get your scorecard.

2. Attend A Workshop:

If you’re committed to Freedom, but still building a practice, paying down school debt,  or growing investment capital, our hands-on Freedom Blueprint Workshops are your entrance ramp onto the fast track! Visit www.freedomfounders.com/workshop to claim your seat!

3. Apply To Visit The Mastermind:

If you’d like to join dozens of dentists, docs, and practice professionals on the fast track to Freedom (5-7 years max), visit www.freedomfounders.com/step-1 to apply for a seat.

4. Want to Work Directly with Me?

If you’d like to work directly with me and a small group of my closest investment colleagues, with direct access to the dealmakers and asset classes that I invest in, just send a message to my Executive Assistant (Lindsey@FreedomFounders.com), and put “Fast Access” in the subject line. Or, call (972) 203-6960 Ext 144 and leave a brief voicemail for Lindsey. Let her know you’re interested in the Fast Access program – we’ll set up a time with you to talk, find out about your goals, and see if there is a fit.

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