Login

The Legal Mistakes That Kill Multifamily Deals with Kyle Swafford

What are the biggest legal mistakes multifamily investors make, and how do you avoid them before they cost you the deal?

In this episode, I sit down with Kyle Swafford, real estate attorney and founder of Swafford Law LLC. Kyle earned his JD from Mississippi College School of Law, where he clerked for Mississippi Supreme Court Justice Kitchens, and went on to complete his LLM in Tax through the University of Florida's top ranked tax law program. Before starting his own firm in 2023, Kyle worked as an International Tax Consultant at Deloitte, spent time with the IRS and the Georgia Department of Revenue, and worked at a premier commercial real estate law firm in Atlanta. Today he represents clients in real estate syndication, tax strategy, joint ventures, and commercial lending.

We get into the small but costly mistakes new investors make when drafting their first LOI, why touring every single unit during due diligence matters more than people think, and the strategies Kyle uses to protect clients on earnest money terms. Kyle also shares the questions limited partners should be asking operators before investing, and why social media presence should never be mistaken for operational competence.

Timestamp

00:00 Intro

02:06 Who is Kyle Swafford and how he became a real estate attorney

05:47 Why touring every unit during due diligence is non-negotiable

09:50 Key mistakes to avoid when drafting your first LOI

14:17 Why buyers should provide the first draft of the PSA

16:02 Strategies for negotiating earnest money and inspection periods

21:35 What passive investors should look for in legal documents

24:53 The most important question to ask an operator before investing

28:18 Why real estate should be judged like any other investment

31:14 Kyle's shift toward a values-driven law practice

33:30 How to evaluate fit and capacity when hiring an attorney

35:09 Why you should not be afraid to raise capital from high net worth investors

What We Cover

  • Why touring every unit during due diligence can save you from costly surprises
  • Key mistakes to avoid when drafting your first letter of intent
  • Why buyers should provide the first draft of the PSA instead of using a broker form
  • Strategies for negotiating earnest money terms and inspection periods
  • What passive investors should actually be asking operators before investing
  • Why real estate should be judged with the same standard as any other investment
  • How to evaluate fit and capacity when choosing an attorney or any team member

Key Takeaways

  • Always tour every unit during due diligence, sellers have hidden mold, damage, and worse behind locked doors before
  • Submit your LOI under an LLC, not your individual name, and keep it clean, consistent, and under two pages
  • Having your attorney draft the first version of the PSA gives you home field advantage in negotiations
  • The seller holds all the leverage until the contract is signed, after that the leverage shifts to the buyer
  • Ask operators what would actually cause a deal to lose all your money and what they are doing to prevent it
  • An operator's failures and what they learned from them matter more than a polished social media presence
  • Investors should hold real estate to the same standard as any other investment instead of assuming an operator did something wrong when a deal underperforms

Connect with Kyle Swafford

 

Hit follow or subscribe wherever you’re listening, and I’ll see you in the next episode!

 


Connect With Me
🌍 Website: https://www.apogeemfc.com/
📸 Instagram: https://instagram.com/multifamilyengineer
💼 LinkedIn: https://www.linkedin.com/in/jonathan-nichols45/
✉️ Subscribe to my newsletter: https://www.apogeemfc.com/contact