Bestseller: BIG MONEY Small APARTMENT
What’s In It For You?
I’d like to first thank you for taking the time to read this book.
Because you are committing your time and your trust in me to “deliver the goods,” I have committed that this book deliver to you, the reader, meaningful content. In it, I reveal the street-wise strategies to growing your wealth and cash flow through your very own apartment business.
This collaboration will teach you the proper steps and hopefully answer all of your questions. With that in mind, let the training begin.
What’s In It for You?
By reading this book, you will learn what took me several years in the time it takes you to read a couple hundred pages.
Here’s just a sampling of what you’ll learn:
How to pay your rent or mortgage for one year by wholesaling one small apartment contract per year How to create financial freedom in five years or less using none of your own cash or credit How to find the real deals.
How to raise all of the private money you want for real estate using none of your own cash or credit Five ways to get started in apartments of any size
(and 16 strategies unique to small apartments)
How to condition your mindset for Playing Bigger So who is Lance Edwards?
My Story It’s absolutely vital that I share my background with you so you can understand the process and know my journey through real estate investing over the
past 10+ years. You see, I eat my own cookin’.
In 2001, I had a young family with a wife and daughter.
I worked for a publicly-traded software company which means that you live and die by the stock price and the company’s quarterly performance. You are only as good as your current quarter.
The company had enjoyed a high rise but the over-exuberance was starting to have its effect - like a hangover following a big party.
The company was conducting what they then called “RIF’s” or “Reductions-in-Force.” I worked 60 hours per week in a position where if I missed my quarterly numbers,
I was summarily fired. It was a little bit of a pressure cooker and that, combined with seeing my friends “RIF’ed,” led me to searching for a “Plan B” or an additional income stream as financial security for my young family.
That’s how I discovered real estate.
In 2002, I took on my very first real estate training, which was a teleseminar on
how to buy houses with no money down.
Taught by a well-known national instructor, the program delivered world-class training in the form of priceless wisdom, which I am now privileged to share with you today but applied to apartments.
My trainer shared a special bit of knowledge with me that changed the trajectory of my life. To begin, he said, “You know, I made a lot of money doing houses.
But I came to realize that to meet my financial goals, I needed to shift to multifamily.
”I repeat: “Multifamily.”
He concluded, “Multifamily provides bigger numbers in a shorter time period.”
That statement just made all the sense in the world to me, and that idea quickly transitioned my thought process on the real estate business as a whole.
After that training session, I came out with a hunger to find small apartments of my own in order to make the most money in the shortest amount of time.
In fact, my first deal was a small apartment - known as a four-plex - which I was able to purchase with no money down, just like I learned in the training.
Let me tell you, there is nothing like your first deal.
It is without a shadow of a doubt, the most critical deal in your real estate career. Above all else, your first deal is critical because it not only proves that the system works, but more importantly, it proves that the system works for you.
The nanosecond after you walk out from closing your first deal, your brain automatically jumps to ask yourself: “How can I do more of these?”
And that first deal was the launching pad to my real estate business.
After closing my first deal, I not only had a sense of satisfaction, but I also had the additional confidence needed to make additional deals.
At the time, I was only working real estate on a part-time basis, and every second was vital for success.
With a very demanding full-time corporate job, I was still able to close 50 nothing-down deals over two and a half years working part-time, closing on both multi-family and single family deals.
Overall, I bought another four-plex, then a 10-unit property, 50-unit property,
56 unit property, and an 85-unit project - always, always, always using other people’s money (OPM), because that is the method that I was taught.
Working small apartments part-time for 3 years allowed me to walk into my boss’ office on a Friday morning and hand him a slip of paper that essentially said,
I don’t need this anymore.”
There are few feelings as powerful as those that come from being able to tell your boss that you are done with your job and that you no longer require a nine-to-five to pay your bills. No more alarm clocks.
No more working to build someone else’s dream instead of my own.
At this point, I had been working within the corporate realm for 20 years with the same company. After such a long commitment, my boss could not help but ask, “Lance, can you tell me how you are able to leave?”
The answer to that question lies within the text of this book.
For those of you hoping to leave your j-o-b,
I’m here to show you how.
An important aside, however: never leave your job until you have a side business
up and running that can replace the lost income.
Throughout these pages, you are invited to learn how to earn supplemental or replacement income from your current job.
Absolutely Free Marketing Book from Google Play
I left my job in 2005 and never looked back.
Using other people’s money, I was out doing deals: buying and holding, or just plain flipping apartments and apartment contracts.
After a few years, some curious folks from my real estate club approached me and asked me to teach them the secrets of my success. In July of 2007, I began to show others how to make deals without using their own hard earned cash.
I held my first training seminar and launched the teaching side of my business, which is how many people know me today.
In the process, I’ve discovered that I have two passions:
deal-making and teaching. And there’s no greater satisfaction for me than helping a student get their first apartment deal done – which I do as my daily vocation, with students across the country.
The largest deal I’ve done to date with a student is an $11 million 294 unit apartment deal. Perhaps we will do an apartment deal together…
My Mantra So let me go ahead and tell you my mantra which is emphasized throughout the book,
“You do not have to graduate from single family to multifamily.
You can start with multifamily.” This book is that proof and recipe.
My Assumptions If you are reading this book, I know that we are kindred spirits. Perhaps you are like I was in 2002:
just starting out as a newbie.
Or maybe you are experienced in real estate but aching to play bigger.
Regardless, I know some of the following are true of you:
You want to play bigger
You want immediate cash, or passive income, or both
You are an employee and you want to leave your job
You own a small business and you are looking for a retirement plan
You have an existing real estate business and you want to scale-up
You are worried about funding your kids’ college education
You have skepticism (and probably fear) about getting started in apartments
You are concerned that you are not qualified due to financial constraints, credit constraints or lack of experience
You believe there is a better way.Free Audible & Interesting Stuff Here
If you fit at least one of these criteria (and I know you do), you are in the right place. The above parameters describe me when I started and those who I work with every day. Case Study – His Retirement Plan Was to “Drop Dead”
Dan Badinghaus is a small business owner with a construction company. He’s also one of my Circle of Champions members (people who’ve closed their first apartmentdeal).
Dan flipped his first small apartment deal with his 18 year old son,
Dylan, and made $30,000 in 9 business days (the record so far amongst my students).
When I interviewed him about the deal, Dan said something that really struck me at my core. He said, “Prior to getting involved with you and apartments, I thought my retirement plan was me dropping dead on the job site.” Wow.
That speaks to the power of what you are learning here and a reason why I teach.
In the pages to follow, there will be more on how Dan and Dylan made $30,000 on their first small apartment deal – and others just like them.
Bonus Resource Interview: Circle of Champions Roundtable
Four Components of Success in Real Estate I want to begin by revealing something that you’ve probably not been told about real estate - the Real Estate Success Model, depicted here in the triangle.
I am introducing it here and will explain it in detail in Chapter 9.
There are four components of success in real estate, which will be reemphasized throughout the book: Component
#1: Specialized Knowledge Component
#2: Marketing Component
#3: Systems Component
#4: Mindset Component
#1: Specialized Knowledge
This is the “how to” of the apartment business: how to find deals, analyze them, negotiate them, flip them, buy them, fund them, improve them, sell them, etc. It is essential to success but NOT sufficient for success.
You need more than knowledge. If knowledge were enough, librarians would be billionaires.
Peter Drucker, the esteemed master on entrepreneurship summarized it best. Business is nothing but marketing and innovation.
Everything else is just a cost center. If your phone is not ringing, you don’t have a business; you have a hobby.
Therefore, you are NOT in the real estate business.
You are in the marketing business.
Marketing is everything. In fact, two-thirds of your time needs to be devoted to marketing.
You see, our business model is incredibly simple.
We constantly market for two things: deals and dollars.
What do I mean by deals?
Deals are properties which I can get control of under preferred terms: discounted price, flexible financing terms, or both.
The other side of the marketing equation is the dollars.
And by dollars, I mean finding buyers or investors. If I’m wholesaling a property,
I need to find a buyer. If I’m looking to buy and hold on a property for passive income and appreciation, I seek out private investors for cash and/or credit.
On one hand, I find the deals.
On the other hand I find the dollars.
And I match-make the two. We are simply matchmakers.
Now, before I leave the second success component of marketing, I need to point out that there’s a third thing we market for when we buy and hold apartments: residents (tenants).
They provide us passive income and net worth. I don’t like the term “tenant” because it tends to carry a derogatory connotation. Residents are those enlightened souls who live in our buildings and go to work each day so that they can give us 40% of their income as rent. Those who don’t pay are “tenants.” Component
#3: Systems Let me tell you right now that I don’t want you to take this information and go create another job for yourself where you wake up one morning and realize you work for a lunatic boss – yourself. You know, that boss who is constantly on your back and never satisfied. You avoid this trap by building a business with automated systems that replicate your personal efforts in a predictable way. Systems have three parts:
2) People and
3) Technology. Now I realize that you may be starting out as I did – as a solopreneur. You’re the proverbial chief bottle washer and CEO.
That’s perfectly fine.
BUT I do want you to have the vision to establish those systems one-by-one as they will be explained here. Which systems do you begin with?
Well, since two-thirds of your activities should be devoted to marketing, your initial concentration should be on creating your marketing systems.
This final component is the most important.
In fact, I believe it’s 70% of your success in real estate.
You see, the chief obstacle between each of us and our grandest ambiambition is FEAR.
No one want to talks about it but I make it a center stone to my training approach.
By mindset, I mean the ability to take action despite fear; the ability to take action when we don’t feel like it. Mindset also means having the ability to confidently play BIGGER.
It does NOT mean that the fear goes away. It’ll always be there in some form. But successful entrepreneurs learn how to act through it.
The good news is that mindset is a learnable skill. And in Chapter 10, I’ll show you how to develop the mindset of playing bigger – skills that I learned and teach daily. Bonus Resource Webinar:
The Whole Truth about Real Estate Investing
Small vs. Mid-size vs. Large Apartments
This book is titled, How to Make Big Money in Small Apartments.
And while I will reveal 16 strategies that are unique to small apartments, everything else is directly portable and scalable to mid-size and large apartments.
So why do I emphasize small apartments?
Because of mindset.
You see, if I were to title this book,
“How to Make Big Money in Apartments,” your subconscious would probably jump to an image of a 200 unit apartment building that maybe you once lived in.
And your little voice would say, “I can’t do that.” Yet, when I add the word “small” to apartments, it all of a sudden becomes plausible.
Your little voice says, “I could do small apartments.” And that is just one reason why
I encourage you to begin with small apartments (more reasons in the next chapter). Get that critical first small apartment deal done and then the larger deals miraculously appear possible.
What You Can Expect I’ve organized this book in a number of ways to facilitate your predominant learning style. We all learn in different modes so I’ve included not only the written text but visual and audio teaching methodologies.
Chapters - This book is split into chapters according to skills and techniques.
There are several methods necessary to study in order to succeed in real estate, and each chapter will let you know exactly what to do.
Chapter Summary - For those who like to peruse, a
Chapter Summary is found at the end of each chapter, along with an explanation of what’s coming next.
The book is intended to be read from beginning to end but you can certainly pull nuggets from each chapter to put to use.
Case Studies -
Additionally, since we learn through stories, there are over 40 case studies that illustrate how normal people with no prior real estate experience were able to utilize the methods I teach and earn enormous amounts of money that they initially thought improbable.
These Case Studies are drawn from my Circle of Champions members, who have closed at least one apartment deal, or from my very own personal experiences.
Frequently Asked Questions –
The entire book is dedicated to teaching and answering your questions. In the last chapter, I summarize the most frequently asked questions - with a reference to the chapter where the topic is discussed.
Glossary - Like all industries, the real estate industry utilizes its own jargon and acronyms so I’ve included a Glossary at the end of the book as a handy reference as you learn these strategies.
Use it. Bonus Resources
- Finally, throughout the book, you’ll find additional learning resources in the multimedia format of tools, reports, and webinars; where you can drill down into additional detail on a topic of interest.
There are also interviews between the successful students you’ll meet in the book and me.
The webinars are conducted by me and my hand-selected experts where you learn and have your questions answered.
At the back of the book, you’ll find a summary of the Bonus Resources. Bonus Resource Webinar:
How to Make Big Money in Small Apartments
The first portion of the book is devoted to the theme of “Why You Should Be in Small Apartments.” The balance of the book explains, “How to Get Started in Small Apartments.” You Need a Mentor I’m going to tell you right now that if you are serious about this business and playing BIG, you need a mentor.
Every success has had mentors.
I’m offering to mentor you – whether thru the form of this book and me sharing over a decade of lessons learned, or more formally in working with you weekly.
Either way, if you truly want the fast track in playing BIG, find a mentor.
Bonus Resource Complimentary Planning Session
You have the ability to create a life for yourself that will let you retire years, if not decades sooner than you’d thought possible.
If you use the knowledge provided in this book,
I can help you make that happen.
Coming Up… In the next chapter, you are going to discover the 7 Keys to Building a Real Estate Empire and how small apartments are the IDEAL vehicle for getting you started.
Chapter Summary Your first apartment deal is your most critical deal – for confidence. That’s why I recommend small apartments to start. You don’t need to graduate from single family to multifamily.
You can start with multifamily – just like I did and my students do.
What is true for small apartments applies to mid-size and large apartments.
There are four components to success in real estate which are all covered throughout the book:
Specialized Knowledge Marketing Systems Mindset
You are not in the real estate business.
You are in the marketing business.
You always market for two things: deals and dollars.
When you own property, you also market for residents.
You need a mentor and I’m offering to be it.
Bonus Resources Summary Interview:
Circle of Champions Roundtable Interview www.BMSABook.com/roundtable