Episode description

Abbas Mohammed is a successful real estate investor who made a name for himself in the multifamily sector. His journey began at the age of eighteen when he entered the real estate industry as a residential agent. Though he initially struggled, Abbas soon found his footing and rapidly rose in the ranks. Within just four and a half years, he earned a spot as one of the top 15 agents in the country, working under REMAX and managing a team of 25 virtual assistants. With his residential business flourishing, Abbas faced a new challenge – how to effectively invest the surplus cash generated from his sales. Initially, he considered building a single-family portfolio. However, upon closer examination, he realized that he would have limited control over the value of these homes, which largely depended on external factors such as interest rates and affordability. Sensing potential pitfalls, Abbas decided to explore other investment options. After thoroughly researching various avenues, Abbas stumbled upon the world of multifamily real estate. Intrigued by the numerous advantages it offered, he quickly made the bold decision to skip single-family investments altogether and dive straight into multifamily. His first venture involved a 64-unit property, a leap of faith that would prove to be one of the best decisions he ever made. Since then, Abbas Mohammed has continued his successful journey in multifamily real estate, leveraging his expertise and experience to further expand his portfolio. His story serves as an inspiration to aspiring investors, showcasing the rewards that come from strategic decision-making, calculated risk-taking, and an unwavering pursuit of success in the real estate industry.

Connect with Abbas Mohammed: https://modelequity.com/invest-now/

Key Topics & Bullets:

Challenges in Raising Money for Real Estate Deals

• Difficulty encountered by the speaker in raising money for real estate deals
• Concerns about using other people's money and the associated risks
• Hesitation in accepting a $50,000 investment due to lack of guarantee on returns
• Positive outcome of a deal with a 29% increase in NOI
• Realization of the seriousness of using other people's money in investments
• Emphasis on the importance of being careful and responsible when dealing with other people's money

Building Relationships with Brokers in Multifamily Real Estate

• Strategy of targeting newer brokers on teams rather than top brokers
• Easier communication and relationship-building with junior brokers
• Importance of treating brokers like friends and being known and trusted by them
• Being omnipresent, active on social media, and diligent in the deal process to establish trust
• Quick response to deals, being communicative and honest to build trust
• Following through on promises and avoiding unnecessary changes or renegotiations
• Establishing deep relationships with brokers through diligence and keeping promises
• Appreciation from brokers for the effort put into deals, even if they don't close

Scaling and Growing the Business through Hiring

• Hiring the first virtual assistant in 2019 and subsequent hires before COVID
• Instruction to the hiring manager to continue hiring nonstop during COVID
• Significant growth of the team from three people to twelve and then from 12 to 25
• Tripling business income in 2020 and again in the following year
• Realization that delegation and hiring people with different skills are essential for growth
• Hiring someone to focus on raising equity from high net worth individuals and family offices
• Prioritizing hiring people who can do what the speaker is trying to...