183 – How To Start Investing In Apartments with Tenny Tolofari

Synopsis

Tenny is a real estate professional. He buys apartment buildings across emerging markets in the U.S. Previously, he worked in cybersecurity and financial services before he got into real estate.

Key points

Tenny is from Nigeria. He currently works as a Global Consultant in cybersecurity for Deloitte. In 2019, he and his two partners started Xsite Capital Investment LLC.

In the process of learning about the different asset classes and strategies used in real estate investing, they chose to invest in multifamily properties. They started to understand the number of units they’d need to be able to pay their property management company and mortgage from meeting with people.

Skipping Straight To The Bigger Deals

Most new investors started in real estate by buying single-family homes or duplexes. Tenny and his partners were able to partner with experienced people and join syndication to buy a bigger apartment.

Through networking, being part of a mastermind group, and getting mentorship, they joined syndication for a 192-unit in Georgia.

To be successful, it’s important to equip yourself with the right team and surround yourself with the right mentor.

Key Lessons

Tenny used to have this philosophy that if he finds the deal, the money will come. But after investors backed out of investing in a deal he found, they had to provide the funds themselves.

Now, he prepares for when people do back out. He reaches out to investors out front and is oversubscribed with other investors ready to step in.

Building your credibility is key to get people to trust you and invest their money with you. Before you even find a deal, start telling people that you’re in real estate and what you’re doing.

Content Creation Strategy

There are lots of new people in the space now. Tenny wants to share what they know to help them the same way that other people shared their knowledge when they were getting started.

Through their podcast, they want to provide value to people. Also, they’re still looking out for people with expertise in areas like marketing who they can learn from.

Balancing Work With Real Estate

Having a full-time job means that Tenny has a set schedule at work. But he makes sure to set aside time for when he does real estate. He makes sure that he is able to be productive because real estate works round the clock.

As a company, they focus on building their credibility, creating systems and a team, and networking. For Tenny, you should have faith in what you do.

Upcoming Deal In D.C.

Right now, they’re in the middle of closing a deal on a Class A, 49-unit high rise building that is a prime property and a great asset class.

They found out about this back in September 2019 through Viking Capital, who made them their co-general partner. It took 6 months to get a hard money loan approved and Viking Capital had a total of $8 million raised for this deal.

Tenny and his partners had a commitment to raise $500,000, and they exceeded that by raising $775,000.

Partnering With Large Real Estate Groups

If you want to get noticed by large groups like Viking Capital, you have to show that you are serious in doing the work. Tenny called them up and set up a meeting with them. He flew to Atlanta with them and did the due diligence.

He even met them in different locations and called them up to ask questions. Viking Capital shared what they knew with Tenny’s group. And Tenny was able to show them that he will deliver.

Preparing For The Next Deal

Tenny’s group is now looking for a deal in Charlotte, North Carolina. They’ve already prepared their property managers. Their team members are knocking on doors.

Also, they have already lined up their investors and got started talking with brokers.

Last Tips

Don’t just sit on the sideline. If you know you want something, get started now. Learn from other people. There’s no excuse not to do anything.

Don’t wait until you get a deal before you start telling people what you’re working on.

Resources

More from our guest

• You can reach out to Tenny on their website.
• Check out also their Meetup Group and Facebook Group