You’re probably on BiggerPockets because you’re seeking financial freedom through some kind of real estate investing. And perhaps you’re even considering apartment building investing but you’re skeptical that it’s a good strategy for YOU because have feel you have one or more of these problems:
- You don’t have enough cash or credit
- You don’t have the experience
- You don’t know how to get started
- It takes too long to be successful
These issues seem so overwhelming that most investors simply dismiss apartment building investing as a viable strategy for them.
And that’s a mistake because all 4 of these perceived “issues” are myths.
The fact is, apartment buildings are one of the best ways to achieve your financial goals, especially if you want to quit the rat race in the next 3-5 years. The truth is, you can get started even if you don’t have any money or experience, and you can even do your first deal in the next 90 days. You just need a little knowledge that will SHIFT your MINDSET so that you, too, BELIEVE you can change your life with apartment building investing.
It’s frustrating to learn that many investors don’t get started with apartment building investing for the wrong reasons. Let’s break down each of these 4 issues in more detail and let me show you why I think each of them are, in fact, “myths.”
Myth #1: “I don’t have enough cash.”
Investors tell me they don’t have enough money for apartments, and that stops them dead in their tracks. The truth is, you don’t need your own cash — you raise it from others. Check out these articles to get you started.
- The # 1 Secret to Raising Money to Invest in Apartment Buildings
- How to Find Investors To Fund Your Real Estate Deals
- A Step-by-Step Guide to Ace Your First Investor Meeting
- How to Structure Syndicated Investor Deals: What Investors Are Looking For
I can guarantee you that once you get the very first investor to commit to investing in your deal, you will experience a similar “a-ha!” moment I did in 2009 when I had no money to invest in real estate deals and decided to raise it from others. You’ll realize that your ability to scale is only limited by your ability to find deals and raise money — not by your personal financial situation.
Myth #2: “I don’t have the experience.”
Many people tell me they don’t have experience and won’t be taken seriously, when in fact with a little bit of knowledge and the right techniques, brokers and investors won’t even ask you about your track record because they assume you HAVE experience.
The truth is, you don’t need experience to get started. You can learn techniques so that people won’t know you’re a newbie. Here are a couple of tips:
- How To NOT Sound Like a Multifamily Newbie (Broker Script)
- How To Be Taken Seriously as an Up-and-Coming Real Estate Syndicator (Video)
Myth #3: “I don’t know how to get started.”
I often have investors tell me they don’t know how to get started because it seems so overwhelming. The short answer is to learn how to analyze deals. Here’s why I say this.
Learning to analyze deals provides the fastest education so you so you don’t sound like a newbie, and it increases your confidence. When you’re more confident and don’t sound like a newbie, brokers will return your phone calls and investors will agree to invest with you. And when you can analyze deals quickly and accurately, you’re more likely to do your first deal and achieve your financial goals.
You can learn to analyze deals. Within a month, you’ll be a master at analyzing deals, and you’ll confidently make offers. Here are a couple resources to get you started.
- Your Complete Guide to Analyzing a Property in Just 10 Minutes
- For some recommendations on a multifamily deal analyzer spreadsheet, see this Bigger Pockets forum post.
Myth #4: “It takes too long to be successful.”
Buying an apartment building is going to take longer than buying a single family rental. But then again, we’re talking about a 3-5 year retirement plan. So what if it takes a year to do your first deal?
If that’s simply too long for you and you want something in the next 90 days, then why don’t you do a duplex for your first deal? You won’t be able to retire from it, but at least you’re in the game and you have a tangible result in the 90 days.
If you’re curious about how you can do your first multifamily deal in the next 90 days, then read my article “How to Buy Your First Investment Duplex in the Next 90 Days.”
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Renting your house is a great way to enter the world of real estate investing, but most first-timers (understandably) have a lot of questions. Fortunately, the experts at BiggerPockets have put together a complimentary guide on ‘How to Rent Your House’. All the skills, tools, and confidence you need to successfully rent your house are just a mouse-click away.
Yes, You CAN Do Your First Apartment Building Deal!
No more excuses. If you REALLY want to quit the rat race in the next 3-5 years, then multifamily investing is one of the best businesses in the world to achieve your financial goals.
Not having money or experience or not knowing what to do get started are no longer reasons NOT to get started. And if you want your first deal FAST that you can do that, too.
I’m not going to answer all of your questions in this one short article. My goal was to OPEN YOUR EYES and perhaps SHIFT YOUR MINDSET. I want you to re-examine what you think you know about apartment building investing and consider the possibilities.
What do you think, doable or long shot?
Let me know your thoughts with a comment!