The System: Become Your Own Private Equity Firm Information
The System: Become Your Own Private Equity Firm is intended for those who are looking to attain true wealth through real estate. In it, you will learn how to do things such as consistently turn ~$15k into ~$200k and how to turn ~$50k into ~$1MM (with an appropriate amount of risk of course). While you can take the information and only do one deal, that’s not the intent of this course.
The intent of this course is to equip you with the information and the tools necessary to start a real estate empire. There are no tricks, no gimmicks – just straight to the point information. Certain sections will be incredibly dense and you’ll likely have to read over several times to comprehend it. That’s normal and it’s also why the course includes a call with me – to make sure you understand everything you learned.
The course is structured to bridge the gap between average investors and private equity firms, with the intended result being you gaining enough knowledge to be on equal footing with a private equity firm.
Here’s what you’ll learn
The first section of the course is titled “The System”. It’s a system pioneered and tailored towards those who are complete beginners in real estate, using a combination of my real estate knowledge, my mentor’s unique investment structure and an investment process that mirrors many real estate billionaires. The end result is an easy fixed-income-type investment model with the highly profitable compensation structure of a private equity firm that will allow you to consistently multiply your capital by double digits. While not foolproof (nothing is) the path laid out is incredibly simple and will result in incredible wealth over a long-term time horizon, even if you execute it poorly.
You literally don’t even need to be a good investor to execute it and can even perform “below market” and still end up quite rich. All it requires is hard work, dedication and patience. The section shows you everything from how to pick a location and how to find a deal, to how to source a deal and how to analyze it. This section includes a ready-to-use multifamily excel model as well as real financials from multifamily assets I own to give you an idea of the “hard numbers”. While The System can really be applied to any type of real estate deal, it’s specifically tailored towards multifamily, so that’ll be the focus of this section.
The second section is for those who are slightly more advanced, or at least have a high risk tolerance. Although I know I’m never going to convince you guys, I really wouldn’t recommend using most of the strategies laid out in this section unless you have prior real estate experience. While the first section is nearly foolproof, its main drawback is that it takes time.
So this section is for those who are impatient and want to get rich quickly, as well as for those who have no money to put down themselves. The section goes into creative and risky deal structures that have the ability to make you a millionaire with one deal (and with nearly no money down). It will get very granular. There are no gimmicks but you must be willing to take on heavy risk. This section will have a heavy commercial real estate focus rather than multifamily.
The third section goes over the entire deal process of a real estate deal. You’ll learn every step of the process, how long each step typically takes, what to look out for in each document (LOI, PSA, DD checklist, operating agreement, etc.) and how to negotiate each specific document, with a step-by-step breakdown of each document. The section includes sample “form” documents that you can use in your own deals as well (although you’d be wise to have your attorney draw up documents as every deal is different).
The fourth section shows you how to find a deal as a complete beginner. While the first section shows you how to find a real estate deal within “The System” strategy (a basic multifamily deal), this section shows you how to find a commercial real estate deal starting from square 1 – as a complete newcomer to a market, which is a slightly different process.
The fifth section shows you how to model an institutional-level value-add real estate deal. The section includes an institutional-level excel model that you can use for your future deals. The section shows you the exact metrics you should look for in the model (literally if x goes above x, then nix the deal). Each step of the process is explained concisely and every single cell of the model is explained as well. This section has a heavy commercial real estate focus (office and retail mostly).
The sixth section shows you how to sell your deal to investors with a concise and easy to use process. Once again, there are no tricks or gimmicks in this section, but you will learn how to sell specific deal type to specific types of investors (how to sell to a young potential investor vs how to sell the deal to your retired uncle) and what to focus on.
The seventh section gives you an overview of the tax advantages of real estate and compares it to other asset classes. The basic items covered in this section are the refinance, the 1031 exchange and depreciation. While the section gives a great overview of what you need to know, you will need to contact a lawyer/accountant before engaging in any of the options offered as everyone’s situation differs from a tax perspective.
The eighth section will test your knowledge. If you’ve been paying attention, this section should be easy. An answer key is provided along with detailed explanations.
The ninth section conceptualizes what you have learned. It’s a fun section that shows you what your net worth and cash flow could be in the next 5-20 years, if you simply execute on the strategies shown in this course. After reading this section, you’ll realize how potent the information learned in this course is. The investment style taught in this course will consistently outperform nearly all other investments by a very wide margin (really not even close). Hint, this is why real life private equity investors make so much money.
More courses from the same author: The Real Estate God
Salepage: The System: Become Your Own Private Equity Firm – The Real Estate God