Due Diligence Must Start After You Get the Documents - Darryl Murphy Sr

Multifamily Missteps Hosted by Christy Keeton

It’s natural to be a little bit too excited for a deal. Sure, one may know the ins and outs of managing deals, but actually being in the works, we might be overlooking the process. When this happens, conflicts and heartbreaks may strike. However, in today’s episode, Darryl Murphy Sr tells us that these setbacks should not discourage you. As he shares his story of his first deal and the turn of events, we can learn from the dangers of not vetting our partners, jumping the gun, and bouncing around for deals. Hear how, despite all these, he managed to use these experiences as ways to pivot and get excited about the next deals.

[00:01 - 03:00] Opening Segment

• Welcoming Darryl Murphy Sr to the show
• Not vetting on investors and jumping the gun

[03:01 - 11:15] Practice Due Diligence but Stick to the Process

• The switch to syndication that triggered suspicion
• Recognizing the significance of sticking to the process
• Coming up with the offer without the financials

[11:16 - 18:09] Don’t Be Discouraged and Learn from Setbacks

• Consulting the lender to perceive debt positioning
• Bouncing around looking for a deal
• Setback as another step to the right direction

[18:10 - 20:09] Closing Segment

• Find the right partners in the game
• Final words

Tweetable Quotes:

“We all know there's a process and we should follow the process and stick to the process. In that way, you don't make mistakes.” - Darryl Murphy Sr

“I did not vet properly to choose, just see about these investors, like who have dealt with them before? Have they done this before? Stuff like that. And I failed to do that. So because of that, I still went through the due diligence.” - Darryl Murphy Sr

“You have to settle down, pick one to two markets, focus on and build a relationship, and then a deal will come.” - Darryl Murphy Sr

“I was everywhere man, I was. I was in North Dakota, South Dakota, New Mexico... I was in Texas, New Jersey when you name a state, and I was there looking for a deal. Until my mentor told me to say, ‘As long as you keep bouncing around like this, you're never going to get a deal.’.” - Darryl Murphy Sr

“Let me tell you, it [setback] did not discourage me. It got me pumped, it got me excited, because now I knew that it could be done for real. I may not have closed on it, I learned a lot from it. And yes, I lost money, too. But I was so excited that it just drove me more and more and more.” - Darryl Murphy Sr

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Are you feeling overwhelmed with Multifamily deal analysis? Are you uncertain about the right investment? Christy is an expert underwriter and mentor and wants help you on your journey! Visit her website at www.ChristyKeeton.com to book a discovery call now.