“What Would We Learn…?”

by Jonathan Twombly
Last Updated: July 29, 2019

In my free investment group on Facebook (Multifamily Investment Community), I was asked an excellent question:

“What would we learn in the Multifamily Launchpad if all you recommend doing is wait for the next recession to hit rock bottom?”

Yes, I do warn that, especially for newbies, now is a dangerous time to invest, because prices are at all time highs after a ten-year run-up, and the risk is to the downside. (Yes, the risk is highest at the top, when everyone’s optimistic; not at the bottom, when everyone’s afraid.)

Here’s the catch! If want to invest now, when risk is so high, it’s even more important that you get educated.

You must understand:

  • The way my students have gotten brokers to show them the few good deals out there. (Even in a buyer’s market, good brokers ignore newbies or show them bad deals. In a hot market, your chances are even worse. But my students get on broker shortlists immediately, with zero track record. Because they learn to apply methods that even jaded brokers cannot resist.)
  • How to pick a market that will be get through the recession safely. (Many of the markets most popular with new investors are the most risky in a recession. Without knowing how to spot these markets, invest at your own risk.)
  • Which properties are the most risky in a recession. (The hottest class of multifamily right now is actually the most risky in a downturn – exactly contrary to what the gurus are telling you.)
  • How to underwrite conservatively for this point in the market cycle. (Most new investors believe they’re being conservative because they follow a standard “conservative” underwriting rule. But that rule’s appropriate for the midpoint in the cycle. Using it now means you overpay, increasing your risk of losing your investment.)
  • How to syndicate deals legally. (New syndicators have flooded the market. When investors lose money in the coming correction, they’ll be baying for blood. The SEC will feel pressure to investigate the syndicators who lost money and to make examples of rule-breakers. Penalties include being barred from ever syndicating again, and returning investors’ money. And if the investors’ equity disappears in the crash, guess where it comes from.)
  • How to pick the right manager and make sure they’re doing their jobs. (Good managers are always hard to find. And in the recession to come, only the best managers will keep your property afloat. Do you know the key interview questions that weed out the dangerous ones?)

Even if you’re like me, and you prefer to wait out the cycle to jump back in, you will miss the opportunity if you wait until after the correction to start your business.

In fact, my biggest regret was not getting started earlier in this cycle — and I jumped in pretty early. I knew people who got in at the very bottom and were buying properties for pennies on the dollar.

I don’t intend to miss the bottom again. Even though the coming crash may not be as deep as the last one, I can tell you one thing:

The buying opportunity will be better than at any time in the last 10 years. And it won’t be that good again for ANOTHER 10 years.

If you are not in the blocks prepared to run, you’ll miss the starting gun.

Brokers will be fearful. Lenders will be fearful. Investors will be fearful. Everyone will be fearful! T people they will be most fearful of are new investors they don’t know.

Building networks takes time, so you’ll want to build them now. If you don’t know the best ways to build networks of brokers, lenders, and investors – and if you don’t start working on it right now, when everyone is feeling good, before the correction –

– then you won’t have any shot of getting them on board with you after the correction, when the buying opportunity will be the best in a generation.

That, in a nutshell, is why you need Multifamily Launchpad now. It will dramatically shortcut your learning process, so you don’t need to reinvent the wheel yourself.

When you join Multifamily Launchpad, you will be able to hit the ground running when the time comes. You will not miss out on the bottom, like I did the last time around.

Only waitlist members will be notified of the limited window to get the discount, so don’t miss your chance.

To join the waitlist, all you need to do is click this link: https://www.mflwaitlist.com


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