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.
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
Website: https://swaffordlawllc.com
LinkedIn: https://www.linkedin.com/in/kyle-swafford-819a24bb
Instagram: @KyleSwaffordEsq
Twitter: @KyleSwaffordEsq
Email: kyle@swaffordlawllc.com
