Real estate investing can be a tricky business... especially when you “don’t know what you don’t know” Which is exactly what I found out when I became an acquisition executive at a real estate investment firm after being a commercial broker for 18 years. UNTIL…I learned how to “failure proof” real estate investing by learning how to conduct “deep dive” due diligence while purchasing investment properties.
From the Desk Of Brian Hennessey
My name is Brian Hennessey and I want to help you to learn how to “failure proof” your real estate investments.
Over the past 12 years, I’ve helped investors purchase over $2Billion in real estate investments. From small owner/user buildings for business owners such as office, retail industrial, apartment buildings, to a $275M office building portfolio, as well as a 377-room full service hotel. I’ve been a commercial broker for over 23 years, an acquisition/disposition executive for 6 years and a syndicator and asset manager for 3 years.
The way I learned how to “failure proof” real estate investments is when I developed my system which I call the “Deep Dive” Due Diligence system, that I learned the hard way.
I know you can learn how to do this to because I’ve taught it to many other investors who have benefited and now swear by it. They wouldn’t even think about investing in a real estate deal without putting my system to work when conducting their due diligence on an investment property.
So... Why do I do what I do?
It’s because I like the excitement of seeing my students succeed at real estate investing and gaining more competence and confidence in themselves and their abilities as an investor.
I had been a commercial broker for 18 years when one of my investor clients asked me to join his new real estate investment company. He had been in business for about two years and had acquired about 300,000 square feet of commercial properties. I thought it might be cool to be an acquisition executive and be a buyer of commercial investments instead of a commercial broker. After all, it seemed like a natural slide into that position. How different could it be? As it turns out…very different.
My first couple of transactions were two large office buildings we were buying from a Canadian investment firm. The vice president I was dealing with quickly discovered I was new to being a buyer of large office properties. He “took me to school” during our due diligence period. It was a stressful, costly, as well as, embarrassing and humiliating experience.
You see, I really “didn’t know what I didn’t know” until I was forced to “sink or swim” when put in the position as a buyer. I didn’t have any instruction manual or acquisition expert telling me what to look out for. There was no one to tell me what the “telltale” issues and hidden landmines were that could be lurking amongst the property, documents or financials. What some of the “tricks” that some professional sellers use to build more profit into the sale process, or a myriad of potential trip wires that could be uncovered when conducting due diligence. Which most investors find out about only after they own the property.
Everything was great...
One day about a month after we closed the transaction on the two office buildings I came into the office and was told the investor wanted to speak with me. I went to his office and he asked me to take a seat. He then got up and closed his door. Then after a long silence asked, “How did you miss all that critical information on the properties we just closed on?” I asked him what he meant in particular, and he started rattling off missing documents, financial information never received, reports we requested that were never handed over, and list of other essential items that I never even knew about. All I could say was “I’m sorry. I had a hard time keeping up with all the information I was reviewing and requesting. Some things must have been overlooked.”
He then said, “I think I made a huge mistake hiring you as my acquisition person. I thought your experience would have been enough to handle this position.”
I was stunned and humiliated. I apologized and was beginning to think he was right. That night I couldn’t sleep. I just laid awake tossing and turning, thinking of how I could possibly have missed all that.
When I got in the office the next day I decided I was never going to let that happen again. I wasn’t going to re-invent the wheel each time I acquired another property. I decided I was going to create a process. One that would allow me to review all the issues, ask all the questions and create checklists needed. I could then systematically conduct the due diligence of a property purchase that would allow me to confidently make an informed and intelligent decision to move forward on an investment or not.
The new direction…
Each time I would learn a new lesson I would put it in my reference manual I created and incorporate it in my system. This was a major game changer for me. I was now a much more competent and confident investor. I became more assertive with brokers and sellers who would push back on issues. What I discovered is once they knew they couldn’t play games with me because I knew my stuff, it was happening a lot less.
After sharing this system with others who were curious about how I could go about purchasing properties and consistently uncover hidden issues and value creators, I decided to morph my reference manual into a handbook for investors. I put it up on Amazon as “The Due Diligence Handbook for Commercial Real Estate”, never really thinking it was going to sell. I just wanted to use it for marketing purposes. What blew my mind was it became a #1 Best Seller on Amazon under commercial real estate books. I’m still surprised how it’s still selling as one of the top books in its genre.
After hearing from many investors around the world who were being helped with the information, I decided to create a video course. As I started to hear from students of the course, how it opened their eyes to a new way of looking at investments, purchasing and creating more value with it, I wanted to get it out there to as many investors as possible.
Ready to learn to ‘failure proof’ your next real estate investment?
Now, I’m considered one of the foremost experts on due diligence in commercial real estate investments in the country. But I haven’t forgotten where I’ve come from. Because of that, I want you to get similar results for you as an investor of real estate.
I want to help you:
- Feel more competent and confident in your investment abilities when evaluating real estate investment opportunities
- Learn how to keep track of all your essential due diligence questions, issues and critical back-up information requested of everyone so things don’t “fall through the cracks”
- Know where to look to find hidden “treasure troves” of valuable information that most investors have no idea where to find when investigating real estate investments
- Learn where most investors leave a lot of money on the table because they aren’t aware of what to ask
- Understand what questions to ask of who and how to ask to get the most important feedback you need to get critical information on an investment opportunity
- Learn to find and purchase great deals that other investors overlook because they “don’t know what they don’t know” when looking at potential investment properties
- Very few properties are valued the same as they are at the end of the due diligence period, as they are at the beginning when you have an accepted offer, once you know how to conduct ‘deep dive’ due diligence. Learn how to position yourself with the seller so you can get the legitimate discounts you are entitled to
- To be able to know at the end of your due diligence period, when you’re ready to remove contingencies and your “hard-earned” earnest money becomes non-refundable, that you’ll be able to sleep comfortably, knowing that you did all the right things to minimize your risk, get all you’re entitled to from the seller and optimize the value of your soon-to-be acquired investment property.
If you want to learn how to learn how to “failure proof” your real estate investments and be able to go into any market, to purchase any property, from any seller or broker with confidence, then you should schedule a quick call with me. It could end up being one of the most profitable real estate calls you make.
To your success-