Landlording & Rental Properties

Don’t Think You Can Do Your First Apartment Deal? Then Read THIS.

Expertise: Business Management, Commercial Real Estate, Landlording & Rental Properties, Real Estate Deal Analysis & Advice, Mortgages & Creative Financing, Personal Development, Real Estate Investing Basics
126 Articles Written

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:

Want more articles like this?

Create an account today to get BiggerPocket's best blog articles delivered to your inbox

Sign up for free
  1. You don’t have enough cash or credit
  2. You don’t have the experience
  3. You don’t know how to get started
  4. 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.

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.


Related: How I Bought a Multi-Million Dollar Apartment Complex at the Age of 26

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:

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.

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.”


Related: 6 Actionable Steps to Land Your Very First Apartment Building Deal

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!

Michael Blank is a leading authority on apartment building investing in the United States. He’s passionate about helping others become financially free in 3-5 years by investing in apartment buildi...
Read more
    Jerome Kaidor Investor from Hayward, California
    Replied about 4 years ago
    I did this. Actually, I’ve NEVER bought an SFR as an investment. Started with a fourplex in 1996, bought an 8-unit building in 2001, and a 52-unit complex in 2003. This last was interesting – the bank wanted us to get it managed as a condition of getting the loan. So I signed a management agreement with my broker, and “fired” her after three months. Been managing it ever since.
    Timothy Friars
    Replied about 4 years ago
    Ha! You clever little minx…man-minx? Manx?
    Rick Miller Wholesaler from Carmel, Indiana
    Replied about 4 years ago
    Brilliant! Every hurdle has a workaround. Tenacity is the key. I tell everyone I work with “how to get it done.” Whether or not they follow through is their biggest hurdle.
    Liam Barnes from New York City, New York
    Replied about 4 years ago
    Michael, love the article. Big fan of all your content & will soon be starting your course. It seems the first two links under myth #1 seem to be linking to the incorrect page, i.e. A Step-by-Step Guide to Ace Your First Investor Meeting.
    Michael Blank Rental Property Investor from Northern Virginia, VA
    Replied about 4 years ago
    Liam – thanks for the kind words! Sorry about the wrong links, here are the corrected ones to those first two articles: The # 1 Secret to Raising Money to Invest in Apartment Buildings How to Find Investors To Fund Your Real Estate Deals
    Replied about 4 years ago
    Michael, Thanks for the article. You helped inspire me to get going. I’m in southern California where even a four plex is too expensive and the numbers don’t look good. My starting challenge is determining which city to concentrate. Once I determine that I’d like to start networking and traveling to learn the area(s). I will be reading all the links in your article. thanks again, Ron
    Michael Blank Rental Property Investor from Northern Virginia, VA
    Replied about 4 years ago
    Ron – to help you to select an area, this article may help:
    Stephen Quesinberry Rental Property Investor from Cumming, GA
    Replied about 4 years ago
    Good work, on to your next article.
    Andrew K. Rental Property Investor from San Antonio, TX
    Replied almost 4 years ago
    Excellent article Michael! I’m binge reading all your posts and am blown away by the value you provide. I’m fired up to put my first MF deal together, as I see MF being my best/fastest route to replacing my W-2 income. I’m a fan and will continue to look forward to your articles–keep ’em coming! -Andrew
    Joshua S. Vendor from Charlotte, NC
    Replied over 3 years ago
    Inspiring article, I appreciate the positive optimistic tone in your writing.
    Pavan Sandhu Developer from Sacramento, CA
    Replied about 3 years ago
    Thank you for all the great content you put out. I read it all. On this post, i even clicked every link.