Looking to partner in multifamily rentals
Real Estate Investor · Southeast, FL · Member since 2008 · 73 posts · 3 votes
Hi all,
I've been an investor in the stock market for a while now but am getting into real estate investing and looking to partner with other investors in multi-family rentals. I have a bit of money but not much experience yet. What do you guys suggest I do to partner with other investors either in my area or in other parts of the US. I am not opposed to the idea of investing somewhere else in the US (outside of Dade or Broward county FL). I just want to have someone help me with understanding the process for doing long distance REI.
Also who here has experience investing (either flipping or buy & hold) outside of their daily driving range? How do you like it and what are the potential pitfalls & rewards? I am interested in hearing other peoples experiences with that.
If you want to find other people in your area to partner with then you absolutely need to find a REI club. There will be a lot of knowledgeable folks there that can talk to you about the local market as well as REI in general.
As for doing long distance property ownership the key thing is you need to find a good property manager. Most managers know how to do the day-to-day tasks (fire them if they don't :lol: ). What sets apart the good from the great is their experience as well as their communication ability. There are times when all is well, but you don't hear from a guy for weeks and you start to worry.
Hey SoBeREI, If you are interested and have CASH to invest, I have a deal right now on a multi-family lot, 3 duplexes, worth 750K to 950K, under renovation, 6 total units, vacant, rents go for $1100 per month in Ceres, California, investor asking $599,000 recently reduced to sell faster. Let me know, I can send you more details. Thanks, Timo
Hey Timo thanks for replying,
Unfortunatly, my reasons for being willing to leave my driving range is to buy something that goes for way less than what I can get here. Needless to say just about anywhere in Cali is NOT below the price range for my area. I'm talking more "emerging markets" (or "places no one really wants to live" if you want to drop the euphemisms ;)).
Honestly however, the more I think about it, I think I would like to find something close range first. Then once I figure out how it all works, I will start looking outside my comfort zone. I'm still trying to figure all this out.
Don't partner with anyone. That's asking for a headache. Worst case senario find investors who would simply be lending you money if you need it. Best case senario, use what you got to buy what you can. You should easily be able to buy multi family with 10% down. That's the way I usually do it. Besides you always here about one partner ending up dead for some unknown reason. Think about it, if you get a partner you're gonna get wacked!
I knew a lady that managed her triplex for years long distance. She lived about 21/2 hours away and was present for turnovers/leasing/etc. visiting at least once a month. She had someone in town to doing small things but she ran the show no doubt about that.
You must have contacts/accounts for emergencies even if you answer every call from your tenants. For example, this week during a termite bond inspection the inspection person sniffed a gas leak underneath the house and told me as I was checking on the other matter. Had to have gas person to immediately check that valve and replace it -- all the while the tenant is present wondering if he's going to blow up or not. Hard to take care of these type matters long distance.
I work with commercial mortage lenders, people with plenty experience in income producing properties. They also participate as investors on some projects. If you are interested on discussing some options let me know. Also if you are interested on investing in my country (Mexico), I could present you some options.
I've been an investor in the stock market for a while now but am getting into real estate investing and looking to partner with other investors in multi-family rentals. I have a bit of money but not much experience yet. What do you guys suggest I do to partner with other investors either in my area or in other parts of the US. I am not opposed to the idea of investing somewhere else in the US (outside of Dade or Broward county FL). I just want to have someone help me with understanding the process for doing long distance REI.
Also who here has experience investing (either flipping or buy & hold) outside of their daily driving range? How do you like it and what are the potential pitfalls & rewards? I am interested in hearing other peoples experiences with that.
I'm not yet ready to invest in RE outside the US, but thanks though.
The more and more I research, the more interested in long distance investing I become. And i know that despite my fears, there are people out there that are making lots of good money being long distance landlords. So what would you guys say are the biggest pitfalls to lookout for when doing REI long distance?
- Not enough money down (or underestimated cash flow)?
- Too many bad property managers out there?
- Investors overpaying for the property?
- Investors not managing their property managers enough or correctly?
Please give details. I'm not so much interested in the number of horror stories as much as I am in the frequency (and likeliness) with which they happen. If a long distance horror story would statistically be likely to happen to me once every 10 years... then I will take my chances with long distance REI. And if I just wanted to hear horror stories, I would ask my family who would be happy to talk me out of making a mistake (like investing my money and becoming rich).
(Lotta naysayers out there ya know.) :roll:
I remember someone from Ohio (I think it was MikeOH) saying on one post a while back that tons of investors from Cali would come out there and "lose their shirt" so to speak. Is this really true and how were they losing, what were they doing wrong?
Half of risk is lack of knowledge and education, so please... educate us all, those of you that have experience with this. After all the educational substance is what makes this forum so great.
Hi there i asked a few of my investors I work with and they aren't interested in that area so I'm sorry for that however if you are in need of amazing financing please do not hesitate to contact me, I work with all credit, property, and doc types. So if you need assistance I am here for you and I hope to form a great partnership in the near future. Look forward to hearing from you!
Umm, In what area? I don't remember specifying one yet that I am interested in (I'm still looking).
Are you referring to my last post? I wasn't saying I was interested in investing in Ohio necessarily, I was just using that as an example of where I had heard that many "Cali'vestors" are losing lots of money and was asking for more detail.
Basically that last post was a call to describe the pitfalls of long distance REI for those who have the experience to share. I hope that clears it up.