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Transcript:
Absolutely. I was a paid “pay-to-play.” I joined a paid mentorship group, and some people were like, “Darin, man, why are you doing that? You have all this experience trading loans.” And I’m like, “Yeah, but I’ve never bought an apartment complex. That’s who I want to be around.” I probably could have done it without being in that group, but it probably would have taken me a year to get my first syndication deal closed. It would have likely taken me three, four, or five years without their guidance and support.
Chris Bounds 06:55
It was you as operator?
Darin Batchelder 06:58
That was me. I partnered with another gentleman that I met in the multifamily group, Raj Gupta, out of Chicago. He had the experience that I didn’t have in buying apartment complexes. We partnered on that, and then we raised capital for that deal from other limited partners.
Chris Bounds 07:20
Can you elaborate a little bit more on that? The phrase, I’m sure you’ve heard it a thousand times, probably every week: “Can I pick your brain?” What I usually tell folks is, instead of saying that, ask, “How can I help you?” Approach it from a value standpoint. How did you get to a position where you could partner with someone who was experienced and probably didn’t need your help since you didn’t have the experience? Maybe you had money that you were bringing in and connections, but how did you approach that situation where you were coming in a position of value, or it was a mutual relationship where both of you could win on that deal together?
Darin Batchelder 08:01
Yeah, that’s a great question. When I first started in that mentorship group, I kind of played the “Hey, I’m a good guy, let’s partner together” card. I had a lot of people who were like, “Yeah, Darin, over a beer or whatever, we’ll partner together when the right opportunity comes.” But those opportunities just didn’t come right away. Finally, someone kind of smacked me in the face a little bit and said exactly what you said, like, “Darin, if I have a deal, why would I partner with you? I’m gonna partner with that guy over there. He’s got eight deals under his belt, and he can raise capital like it’s nothing.” I was like, “Holy cow, why would anyone partner with a newcomer like me?”
She told me to go find the deal. That’s when I pivoted. I realized that the value I could bring was doing all the legwork. So that’s what I did. I would underwrite the deals, go out on property tours, contact property management companies, get quotes for the lender—I pretty much put everything together. Then, when I approached Raj Gupta, my experienced partner in the deal, I said, “Look, I’ve got a really good chance of winning this deal. Do you want to partner with me?”
He said, “Send over the information.” I had everything done. In a 45-minute conversation, he was like, “Yeah, man, I have another property down the road. I know that area well.” So, the value I brought was doing the legwork. I say to the listeners, it doesn’t matter how young or old you are, you have value. You just have to figure out what it is. Whether it’s the hustle factor, having the money, or having the connections, there’s something you can offer.
Chris Bounds 09:59
Yeah, And so were you leveraging your mortgage contacts on finding that deal or were using like a different strategy of you were just hustling contacting owners and brokers.
Darin Batchelder 10:11
So in the large-scale multifamily business, the brokers pretty much control a significant portion of the market. So, you know, I found out who the brokers were in Dallas, where I wanted to be since it’s where I live. Then, I started underwriting every deal that these brokers were coming out with. When I found a deal that looked attractive, I would reach out to them and go on a property tour. After that, I would decide whether to continue pursuing it. You can do that.
Chris Bounds 10:53
Anyone can do that. It’s just that if you want to break into multifamily, whether you’re already in single-family and have some real estate experience, or you’re brand new, it’s about finding the value you can provide. Almost everyone wants a deal, but there are other things too. For example, I had an operator. She had a deal in Houston but didn’t live there. She asked me, “Hey, can you go check this out? Give me your feedback. If we win, we’ll partner with you on it.” It was something she needed, and she quickly realized the value of having someone boots
Darin Batchelder 11:26
On the ground for that person. That’s another way to add value for sure. Yeah.
Chris Bounds 11:30 Yeah, absolutely. So just finding that niche.