MB329: Applying a Sales Mindset to Multifamily Investing – With Eric Chadderdon
Description
Not everyone who wants to be a real estate investor sticks with it long enough to be successful. But if you apply a sales mindset to multifamily investing, you will be able to take the initial rejection and keep pushing.
Because as Eric Chadderdon says, ‘The only time you lose in this business is if you quit.’
Eric is Managing Partner at Gibby’s Capital Investments, a boutique firm that helps investors diversify their portfolios with commercial real estate. He got into multifamily in December of 2020 and has amassed a portfolio of 724 units in just 18 months!
Prior to founding Gibby’s, Eric spent 12 years in the sales industry, and he leverages the skills he learned there to build relationships in the multifamily space.
On this episode of Financial Freedom with Real Estate Investing, Eric joins Garrett and me to explain why he quit his W-2 job after his first multifamily deal and explore how the skills he learned in sales translate to real estate.
Eric discusses what he did to build relational capital in the real estate space, challenging us to put ourselves in the right rooms and add value any way we can—without asking for compensation.
Listen in for Eric’s insight on underwriting in an uncertain market environment and learn how a sales mindset can help YOU scale a multifamily portfolio and quit your 9-to-5 with real estate!
Key Takeaways
Why Eric quit his sales job after his first multifamily deal
- Lost passion for sales after 12 years
- Focus on real estate full time to scale faster
The strengths Eric brings to the real estate business
- Communication and relationship building
- Push through rejection with sales mindset
What Eric did to build relational capital in multifamily
- Added value to others in any way he could
- Helped with due diligence, raised money
- Didn’t ask for compensation
How Eric picked up other skills along the way
- Seek out mentoring and coaching
- Flexible with opportunities
Eric’s experience with the Law of the First Deal
- Instant credibility with brokers and investors
- LOI on 2nd deal accepted 10 days after close
How Eric scaled his portfolio to 724 units in 18 months
- Partner from first deal agreed to sponsor
- ‘Surround self with people better than me’
How Eric’s team divides up roles and responsibilities
- Brett does underwriting and acquisitions
- Eric raises capital, does investor relations
- Meaghan responsible for asset management
Eric’s approach to investing in an uncertain economy
- Be selective, extra-conservative on underwriting
- Build cushion around rent growth and insurance
What debt Eric is looking at in the current market
- Bridge debt so far but pulling back
- Agency debt if terms look good
Eric’s vision for Gibby’s Capital moving forward
- Exit first deals in next 2 to 3 years
- Add 500 to 1,000 units per year
Eric’s advice for aspiring multifamily investors
- Put yourself in room right rooms
- Potential partners at conferences, meetups
Connect with Eric Chadderdon
Resources
Learn More About Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Access Michael’s Free Resources in the Freedom Vault
Financial Freedom with Real Estate Investing by Michael Blank
Apartment Investor Network Facebook Group
Email podcast@themichaelblank.com
The post MB329: Applying a Sales Mindset to Multifamily Investing – With Eric Chadderdon first appeared on Apartment Building Investing with Michael Blank.
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