On the show today we talk… How to Find Partners and Raise Capital with Jens Nielsen!
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Show notes: How to Find Partners and Raise Capital with Jens Nielsen!
Today we are super stoked to have Jens Nielsen of Open Doors Capital!
Jens is a fellow Dane with Julie.
Jens background
He moved from the country to the city, and thought it was really fun.
In 1996 he moved to the US and taking a job where he was traveling all over the world. He eventually got tired of the traveling and transitioned into IT.
From there he got an education and job, and it didn’t occur that there was any other way.
He eventually moved to the Southwest and finally Colorado. Where he stumbled onto real estate by finding Brandon Turner’s book.
In the beginning did you have friends…
When he decided to reach out to a friend cyclist that had a bunch of mobile homes. The friend had a broker that referred him to his first multi family property for like $17k
Did you have analysis paralysis
Not too much early on. He had his own money, and felt like it was ok.
Jens also had his friend Chuck/broker to tell him what he was buy himself.
Did you get into joint ventures
He wanted something bigger, and found an 11 unit with seller financing.
The seller carried the note, and all of the money rolled back into the property.
What about renovation
Jens owes Chuck a lot, he did everything. Help with property, renovations, etc.
This deal is still in Jens’ portfolio.
Did you invest in syndications
Yes, I bought some deals, then started learning about real estate investing.
From there he started buying into some syndications to expose himself to other markets.
Who are your favorite syndicators
Joe Fareless is one of the best ones.
What is the difference between joint ventures and syndications
You can do a joint venture with a small group of people where everyone has to have a role. This could be very little to highly involved. When they started they didn’t have this in writing, but now it’s pretty mapped out.
When you have investors that don’t want to be active… Then you have to setup the legalities.
What was the next step
Jens got really excited about real estate investing, and was talking with everyone about it. Lots of friends in the cycling community. So he told Chuck that he wanted to go bigger, and he found this $1.2 million dollar deal, and brought it to a few friends.
That was his first opportunity to manage investors and give updates. There were challenges, but it taught him a lot about it. This deal still cash flows really well!
When did you move on from Chuck
Jens realized that he wanted to do real estate investing full time, but his trajectory wasn’t going to get him there. So he started getting coaching and going to events.
Networking is key!
He realized that he needed to get outside of his comfort zone.
How did you convert from introvert
He got so excited about real estate and it pushed him past his fears.
If you go an event… go to the middle so you can immerse yourself and talk with people that are really interested.
Early 2019 he had built credibly and could co-sponsor his own syndication deal.
Exactly what Jens did
He would go to events and find people that were a little bit ahead of him. Then he asked those people if they wanted to do a Zoom mastermind call. One of the guys had done one or two syndications. And he asked if Jens wanted to come along on the syndication.
Jens also coaches and mentors people and created a community of like minded people.
What is the way to get started
Can you find the deal, get the broker to give you the deal, then can you raise the money.
He found some local, younger guys that wanted to be active, but couldn’t raise all the money.
Jens brought his value, and they brought their value.
Jens met his partner and got involved in 2019, and they’ve done 15+ deals. They complement each other really well! They are good friends, and mesh so well.
How are you finding deals at this point
Right now they are focusing on the Cleveland market and the surrounding area. Because his partner is in that area.
There are also a few other deals that have come up within the community.
How do you get to the attention of brokers
That’s a huge challenge.
Make sure the broker gets to know you. If you want to buy in an area… go to that area and have coffee, dinner, etc. Then call them regularly, and give them feedback. From there, you need to put in some serious offers when you find deals that work.
Have you gone full cycle
Yep, about 5 deals.
What’s the most recent lesson that you’ve learned
Patients is a big one! Especially on value add deals.
When you buy a property the occupancy always starts dropping, you freak out, and then it starts building back up. It’s never as fast as you want it to.
Have you had any issues with interest rates
There is one deal that they bought when interest rates were low, and they didn’t buy a rate cap. It started at 4% and it now about 8%. They have turned over all 180 units already, and they are looking to refinance.
Are you usually putting on bridge debt
Some of the earlier were fixed debt, but the more speculative deals are with bridge debt.
The big payday comes at the refinance.
What is the biggest problem that you’ve had to overcome
Anyone who bought real estate in the last 5 years looks good!
They did have a fire in a building in Phoenix. And there have been storms in the North East that have damaged pipes. Those are the things that will happen if you’ve been in the business long enough.
How can people get involved with you
OpenDoorsCapital.com if you want to invest with them. You can also get on a call at the website. Jens@OpenDoorsCapital.com.
Mentoring and coaching.
Events that he’s going to
Raise Masters Fest
Jens is doing a 50-70 Pay It Forward Mastermind is coming up. https://payitforwardmastermind.com/
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