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Owned by Chris

The Ultimate Investor Community Teaching You How To Learn Commercial Real Estate And Achieve Bigger Profits With Less Effort!

79 contributions to BIGGER PROFITS 💪
Bigger Profits Challenge #2: The Buy Box Board is open
On Wednesday you built your buy box. Today you post it. https://www.skool.com/biggerprofits/build-your-buy-box-in-20-minutes Why post it where everyone can see it Members in your market or lane can find you. That's how partnerships start. Members outside your lane might see a deal that fits you and send it your way. Writing it where other people can see it makes it real. And I read every one. If something's off, I'll tell you. Copy this format Asset class: Markets: Size: Price range: Condition: Value-add play: Exit and hold: Why this lane (one sentence): The rep 1. Post your buy box on the board. 2. Reply to at least one other member in your market or your lane. Stuck? Can't fill in four of the seven fields? That's normal and it's fixable. Book a strategy call with me and we'll build it together: https://sites.biggerprofits.com/strategy I take these calls myself. Your turn Post your buy box, then reply to one member in your market or lane. Chris Rassam 💪
Build your buy box in 20 minutes
A buy box is a short description of exactly what you're looking for. Brokers use it to decide whether to call you. Partners use it to decide whether to work with you. You use it to say no fast. Grab the Buy Box Builder guide [ATTACHED] and fill in these seven fields. 1. Asset class. One. Maybe two. Remember last week. 2. Markets. Two to four metros or regions. More on picking them below. 3. Size. Units, doors, or pads. "40 to 150 units" is a buy box. "Any size" is not. 4. Price range. Be honest about what you or your partners can do. 5. Condition. Stabilized, light value-add, or heavy rehab. 6. Value-add play. How will you raise the NOI? Rates below market, expenses to cut, vacancy to fill, room to add units. 7. Exit and hold. Assign, partner, or buy and hold? For how long? Picking markets with free public data You don't need a paid tool to start. Look at: Population growth over the last five years. Census data is free. Job growth and who the biggest employers are. Landlord-tenant laws. Some states make residential property much harder to manage. Property tax rates, and whether taxes reset after a sale. For storage, how many facilities already sit within a few miles of the site. An example buy box "Self-storage, 300 to 600 units, in the Phoenix and Tucson metros. $1.5M to $5M. Light value-add: rates below market or under-managed. Open to assigning or partnering. Hold five to seven years if we buy." Your first buy box will be wrong in a couple of places. That's fine. You'll fix it after the first five deals you look at. On Friday we're opening the Buy Box Board. Your turn Which of the seven fields was hardest to fill in? Chris Rassam 💪
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Build your buy box in 20 minutes
Did you know there's more than one way to get paid on a commercial deal?
Good morning team!! Most people think commercial real estate means one thing. You buy a building, you hold it for ten years, you collect rent. That's one way. It's not the only way, and for a lot of people it's not the right first way. 💰 Five ways to get paid on a commercial deal 1. Assign the contract (Wholesaling) You get a property under contract at a good price, then sell your contract to another buyer for a fee. You never close on the property. Your money at risk is usually the earnest money deposit. Your contract has to allow assignment, in writing. 2. Double close Same idea, but you close on the property and sell it to your buyer, often the same day. Useful when the seller won't allow assignment. It costs more because you're closing twice. 3. Partner on it You bring the deal. A partner brings money, experience, or a loan they can qualify for. You split the profits. Get the split in writing before you close. 4. Syndicate it You raise money from a group of investors to buy the property. You run it and earn fees plus a share of the profits. This involves securities law. Talk to a securities attorney before you raise a dollar. 5. Buy and hold You own it. Cash flow, loan paydown, appreciation, tax benefits. The slowest way to get paid, and often the biggest over time. Why this matters right now? When you look at a deal, the question isn't only "can I buy this?" It's "which of these five ways could I get paid on it?" A deal you can't afford to buy might still be a great deal to assign or partner on. A deal that's too small to syndicate might be perfect to hold. This is general education, not legal or tax advice. Your turn Which exit had you never considered before today? Chris Rassam 💪
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Did you know there's more than one way to get paid on a commercial deal?
What Would You Do? #2
Two deals hit your inbox the same morning. Both list at $2,100,000. You can chase one. These are made-up numbers for practice. Don't go looking for them on Crexi. Deal A: Self-storage 420 units, mix of drive-up and climate controlled 84% occupied Seller's NOI: $147,000 (a 7.0% cap at asking) Rates haven't been raised in three years, per the broker Run by the owner's nephew, part time 4 acres, with 1 acre sitting empty Deal B: 30-unit apartment building Built in 1978, all two-bedroom units 93% occupied (28 of 30) Seller's NOI: $136,500 (a 6.5% cap at asking) Rents about $150 below the newer building across the street Third-party management at 6% of revenue Roof is 19 years old Before you answer, remember October 14. Value comes from NOI. Which deal has more room to raise it? And which seller's NOI do you trust less? The rules Pick one. Then tell me the first number you'd verify before you'd make an offer. I'll post my pick tomorrow in the comments. Chris Rassam 💪
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What Would You Do? #2
The 4 lanes side by side: multifamily, self-storage, RV parks, mobile home parks
Here's how they compare from the owner's chair, not from a brochure. Multifamily Tenants: people, mostly on 12-month leases. Management: the heaviest of the four. Turns, maintenance calls, collections. Big expenses: roofs, HVAC, plumbing, unit interiors. Financing: the most lender options of the four. Good fit if you want a clear value-add playbook: renovate units, bring rents to market. Self-storage (My fav) Tenants: people's stuff, month to month. Management: lighter. A lot of it can run with a small staff and good software. Big expenses: lower than apartments. No kitchens, no bathrooms. Financing: most community banks will look at it. Terms vary more than with apartments. Good fit if you want simpler operations and you're okay with rates that move monthly. RV parks Tenants: a mix of nightly, monthly, and seasonal guests. Management: closer to hospitality. Bookings, check-ins, reviews. Big expenses: utilities (water, sewer, electric pedestals) and roads. Financing: fewer lenders, and seller financing comes up a lot. Good fit if you like running a business you can grow with marketing. Mobile home parks Tenants: residents who usually own their home and rent the lot. Management: light on the homes when residents own them. Heavy on infrastructure if the park is old. Big expenses: water lines, sewer lines, roads. Check them before you buy. Financing: harder for small parks, and seller financing comes up a lot. Good fit if you like steady lot rent and you're willing to dig into the utilities. None of these is the best one. The best one is the one that fits your capital and how much you like dealing with people. Join The Channel: https://www.youtube.com/@GetBiggerProfits Your turn Which lane fits your capital and your patience? One sentence. Chris Rassam 💪
The 4 lanes side by side: multifamily, self-storage, RV parks, mobile home parks
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Here is your Asset Class cheat sheet! Let me know your pick.
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Chris Rassam
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@chris-rassam-4660
Real Estate Investor & Business Entrepreneur

Active 22h ago
Joined Dec 4, 2024
Scottsdale, AZ
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