When you hunt, the prey runs away. But when you fish, you simply put a lure in the water and let the fish come to you. Tim Bratz likens raising private money to fishing: You provide value through education and intentional conversation—and then wait for the investors to come to you.

Tim is the owner of CLE Turnkey, a real estate investment firm focused on apartment buildings, vacation rentals and other commercial properties in Ohio, South Carolina, Georgia, Florida and Texas. His current portfolio consists of 2K units with a value of over $100M. Tim also offers coaching and mentoring through Commercial Empire.

Today, Tim joins me to explain how working as a commercial broker sparked his interest in investing and share the story of buying his first property—with a credit card! He discusses his transition from flipping, wholesaling and single-family rentals to multifamily buy-and-holds as well as his mindset shift around hiring a team. Listen in to understand the current opportunity around raising capital for multifamily and learn Tim’s approach to luring passive investors rather than chasing them.

Key Takeaways

How Tim got interested in real estate investing

  • Worked as commercial agent in NYC
  • Ran numbers on landlord’s profit

How Tim bought his first duplex on a credit card

  • Asked for $100K credit limit, received $15K
  • Flipped property in 75 days for $13K profit

Tim’s transition to multifamily buy-and-hold

  • Connected with investors ($1M to work with)
  • Found 8-unit building in C-class area
  • Apartments scalable, financing easier
  • Portfolio of 2,000 units in 42 months

Why raising capital is the best use of your time

  • Finance commands all other industries
  • ‘Control the money, control the deal’

Tim’s mindset shift around building a team

  • Hesitant to hire assistant for $35K/year
  • Revenue increase from $100K to $400K/year

The activities Tim outsourced first

  • Dry cleaning, car wash, post office, etc.
  • Marketing and inspections

Tim’s first six-figure hires

  • COO, CLO = engines that run business
  • $48K salary + profit share based on role

The current opportunity around raising money

  • Uncertainty in market, volatility
  • Shift from stocks to hard assets

Why multifamily is the safest investment

  • More control than stock market
  • Limited risk in B, C+ properties
  • Invest for cashflow vs. speculation

Tim’s approach to potential passive investors

  • Educate around opportunities (e.g.: self-directed IRA)
  • Fish rather than hunt, intentional conversations

What investors are looking for

  • Collateral and ROI
  • Credibility, fortitude

Connect with Tim

Tim on Facebook

CLE Turnkey

Commercial Empire

Resources

Invest with Michael

The Ultimate Guide to Buying Apartment Buildings with Private Money

Michael’s Mentoring Program

Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank

Michael’s Website

Podcast Show Notes

Review the Podcast on iTunes

The Secret To Raising Money To Buy Your First Apartment Building

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