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Joe Fairless bought his first single-family investment properties in his home state of Texas after leaving a successful, but unrewarding career in advertising. After finding that multi-family investing offered greater returns and less inventory, he began making the transition to multi-family investing.
His first deal was managed through unconventional measures. Lacking the standing as a seasoned multi-family investor, Joe incorporated non-traditional, creative equity solutions for obtaining capital for his first 168-unit apartment complex in Cincinnati, Ohio. Now founder of Fairless Investments, Joe controls millions of dollars in multi-family investment properties. Joe shares his experience in multi-family investing and provides tips for securing capital through creative equity methods.
- Challenges for Single-Family Investors
- Lack of credibility in multi-family markets
- Traditional lending and private financing may be difficult to attain
- Network Personal Contacts
- This is a good practice for single-family investors to find financing by networking personal relationships for interest in multi-family investing
- Strategic Networking
- Network and affiliate with organizations that may not be lenders but have cash flow or may have eye towards investing
- i.e. philanthropic organizations, community foundations, business groups
- Network and affiliate with organizations that may not be lenders but have cash flow or may have eye towards investing
- Establish Investment Base First
- This does not mean a blind-fund or requirement of prior monetary investment
- Form verbal contract with investors based on shared financial goals
- Pursue investment opportunities that suit shared criteria
- Structuring Deal With Investors
- Preferred returns – investors get cash from deal before yourself
- Acquisition fees
- Performance hurdles
- Post-sale incentives
- Tips
- Make yourself attractive to lenders and investors
- Know the market, know the deal
- Investing is starting a small business; structure so that you may sell that business. Don’t get tied down to an investment
Joe has his own daily podcast in which he interviews guests on a variety of real estate investment strategies
For more information on Joe, visit his website
You can also contact him by email at info@joefairless.com with questions or investment opportunities!
Joe also shares some helpful literature for single-family investors looking to make the transition:
Investing for Dummies – Eric Tyson
Commercial Real Estate Investing for Dummies – Peter Conti & Peter Harris
The Complete Guide to Buying and Selling Apartment Buildings - Steve Berges