Advice Wanted: 100 Unit Property for 1st Deal??

Question

My husband and I are new to investing.

I have been interested in real estate investing for many years, but by husband just got on board when he became good friends with a local investor who owns multiple large apartment complexes in our area. This friend has happily taken on the role as a mentor to my husband. The friend / mentor found a 100 unit property that he thinks could be a good deal for us. My husband and I can only afford a 2-4 unit property on our own, so the mentor has offered to either partner on the deal or be our private money lender. My husband trusts his mentor completely and is entertaining the idea. I, on the other hand, am terrified of taking on that many doors with ZERO landlord experience. Also, having a mentor is great, but don't want our friendship to be tainted by business dealings.

I would really appreciate any advice. Should I trust the experienced mentor, or is this many doors ridiculous for a 1st deal? What are your thoughts?

Nick Belsky · Answer

@Lauren Blumstein

Yeah, the average investor is not jumping into 100-units for a reason.  Financing would be a huge hurdle as well.  Even if you had tons of reserves, stellar credit, etc... you have no experience with something of this scale.  Very few, if any lenders, would take on that much risk.  If they did, it would accordingly expensive.

If your partner is willing to start with something smaller then help you scale up over time, that may be the best option.  As with any deal, you need to assess your own risk tolerances and mitigate accordingly.  Even so, if you plan on using financing, whether private or agency, they also have risk tolerances and if you don't check all their boxes, there is no easy way to get financing.

Cheers!

Nicholas L. · Answer

@Lauren Blumstein

i don't know anything about you or your friend / mentor but in general, yes, it doesn't make sense to start out with a 100-unit.  i'm not sure how you'd finance it either...

Ezekiel Trevino · Answer

If you have zero landlord experience, look into hiring a property manager. Especially if your considering investing in a 100 unit property. If you decide to be a landlord, you will get tons of calls regarding showings, maintenance, and complaints just to name a few. In my opinion, look for a property manager.

If the numbers look good, I'd say to invest the 100 unit property. Talk to your friend/mentor and discuss what are the pros and cons of partnering on the deal or being the private money lender. Once you have all that information, talk with your husband and see what route is best.

If you think 100 units might to risky, start off with a 2-4 unit property. However, talk to your friend/mentor get their opinion.

Preston Dean · Answer

Hi @Lauren Blumstein

Just because you can do the big deal doesn’t mean you should—yet. If you rush, you might learn painful lessons. But if you start small and build the muscle, you’ll be positioned to confidently take on deals like this with more autonomy and clarity later.

You don’t have to say “no” forever. Just consider saying “not yet.” That’s a powerful answer too.

Drew Sygit · Answer

Something isn't adding up.

Why would this "friend/menotor":

1) Not do the deal themself?

2) Advise two newbies with little experience to do it?

3) Offer private funds to inexperienced newbies?

The only answer I can come up with relates to what you two are bringing to the deal.- How much are you two investing of your own funds?

Also, what research have you done to confirm this "deal" isn't actually already owned by this "friend/mentor" who really just wants to take advantage of you by creatively selling you their property:

1) To get your cash

2) Set you up to fail with terrible seller-financed terms, cloaked as "private money"

Put another way, they could be selling you one of their underperforming properties with seller-financing, just to get your cash to save their a$$. They take advantage of your inexperience and trust by setting up a private money loan (really seller-financing) structured so that you end up defaulting on the payments & obligations. Then they get to take back the property and keep any money you put in.

Have seen this scam before:(

Patrick O'Sullivan · Answer

Hi Lauren,

Kudos to you for asking the hard questions before jumping in—your caution is wise, especially when you're new to real estate investing.

A 100-unit property is a very big leap for a first deal. Even with a strong mentor, you're talking about operational complexity, significant financial risk, and a steep learning curve. Property management, tenant issues, maintenance—these all scale up quickly. It’s not just about financing, but also about your ability to confidently operate at that level, especially if things don’t go according to plan.

The fact that your mentor is offering to partner or lend is generous, but I’d suggest stepping back and asking: “What is the educational value of this deal for us?” If it’s mostly passive and you’re not gaining hands-on experience, you might come out the other side with little practical knowledge—and a lot of exposure.

Starting with a 2–4 unit can give you foundational experience in landlord responsibilities, managing finances, and understanding tenant relations. You’ll also learn what type of investing fits your style and goals. That way, when you do scale up, you’ll be doing it from a position of strength, not fear.

It might be worth having a candid conversation with your mentor about starting smaller and growing with guidance. That way, you’re building both experience and confidence, without putting your finances or friendship on the line.

Wishing you both the best as you start this journey!

Advice Wanted: 100 Unit Property for 1st Deal??

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