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 do
• Importance of being in the driver's seat when starting a business, but adding more people for accelerated growth

Advantages of Investing in Multifamily Properties over Single-Family Homes

• Difficulty in buying single-family homes due to tenant and maintenance issues
• Trend of people selling single-family portfolios to invest in multifamily properties
• Passive investment in multifamily properties leading to favorable returns and tax savings in 2021
• Advice to think bigger and ramp up production in real estate investing
• Importance of putting in more volume and effort for success in strategies
• Initial success as a residential real estate agent, leading to caution in building a single-family portfolio

Timing and Market Considerations in Multifamily Investing

• Acquisition of first multifamily deal in late July 2021 and subsequent $30 million deal in December 2021
• Conscious decision to stay out of the market in Q1 and Q2 of 2022 due to overpricing
• Resumption of buying in July 2022 when market prices dropped
• Belief that 2023 will be a good year for investing due to decreased asset prices and less competition
• Mistake of wasting 6 months looking for deals during unfavourable market conditions
• Importance of building relationships with investors and growing the business during market downturns

Choosing the Right Market and Building Relationships

• Focus on choosing the right market over the right property in multifamily investing
• Emphasis on the Dallas-Fort Worth market and leveraging sales background for broker relationships
• Sourcing off-market deals and gaining an advantage over other buyers through broker relationships
• Consideration of factors like population growth, job growth, income levels, and landlord-friendly laws when choosing a market
• $40,000 or higher area income requirement and feasibility of rent increases based on projected household incomes

Building a Scalable Business through Systemization and Delegation

• Implementation of cold calling to generate leads, aided by a virtual assistant
• Expanding the team with a hiring manager, training manager, salespeople, and an agent
• Transition to a nearly 100% passive business through delegation and hiring
• Shifting focus to model equity and multifamily and hiring someone to underwrite deals
• Hiring someone to handle email and marketing tasks for time savings
• Recent hiring of someone to help with equity raising
• Incremental hiring based on reaching capacity and taking things one step at a time

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