New, I have interest in buying appartment buildings

Member since 2019 · 5 posts · 2 votes

I want to purchase a appartment complex. I have a Masters degree so I'm not seeking any more paid education. I'm a mechanical engineer designer with a architectural degree as well.

How do I get a commercial loan, buy land, find builders?

Or how do I buy a filled property, with investors money for the down payment?

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Michael Swan

Rental Property Investor · San Diego, CA · Member since 2014 · 1k+ posts · 2k+ votes

Hi @Annie Porter

I also advise Multifamily Millions and his Emerging Markets book by David Lindahl. Also, I highly advise to talk to investors that have already gone down the road you would like to travel.

I was on Podcast 238 and leave my phones available to talk to BP members every Mon, Tues, and Fri 3:15-6:15 in the afternoon to talk RE. Also, Wed 4:00-6:15 pm. That is PST. I live in San Diego.

I have 8 apartment complexes and am currently in negotiation for a 24 unit too. Right now I have 120 units and if I get this 24 unit, I will have 148 units. You could message people like me and pick our brains.

Swanny

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Matthew PorcaroBusiness Member
Lender · Long Island, NY · Member since 2016 · 456 posts · 336 votes
7y
Those are some huge questions, with a lot of strategy behind it.
It's not all that simple. There are plenty of resources out there I'd start with.
I also highly recommend @Jonathan Twombly and @Gino Barbaro as being some of the best in the business as far as apartment buildings is concerned!
The 203k Way
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David AcostaPro Member
Wilmington, NC · Member since 2014 · 208 posts · 144 votes
7y
Hey, @Annie Porter - I woud start with firming up your criteria (Location/Asset Class/Returns). You'll need to get a little more dialed into your investment philosophy in order to effectively go about the "how"
- Commercial Loan: Contact a local lender or mortgage broker.
- Buy Land: Contact a location-specifc broker.
- Find Builders: Network --> ask for referral based on your target market
If this is your first acquisitions, I would take a strong look at properties that are well performing and stabelized (filled). What size property are you looking to purchase and in what area?
Best of luck!
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Annie Porter
OP
Member since 2019 · 5 posts · 2 votes
7y
Thank you, I didnt think of asking builders. I assume it would be more reasonable to look in the area I live in in Minnesota
0 Reply
Gino BarbaroPro Member
Rental Property Investor · St Augustine, FL · Member since 2014 · 2k+ posts · 1k+ votes
7y
@Annie Porter
How does a masters degree help you buy an apartment complex? Multifamily is a specific skill set that you need to learn.
Follow the posts on BP and listen to podcasts.
Good luck
Gino
Podcast Guest on Show The “Conveyor Belt” System That’ll Build You a BIG Rental Portfolio Quickly
1 Reply
Annie Porter
OP
Member since 2019 · 5 posts · 2 votes
7y
it doesn't help anything.
0 Reply
George Blower
Retirement Accounts Attorney · Southfield, MI · Member since 2017 · 3k+ posts · 1k+ votes
7y
@Annie Porter
Welcome to BP!
0 Reply
Annie Porter
OP
Member since 2019 · 5 posts · 2 votes
7y
Thank you
0 Reply
Alina Trigub
Rental Property Investor · Glen Rock, NJ · Member since 2015 · 3k+ posts · 2k+ votes
7y
@Annie Porter
While you're not looking for more paid education, you should consider educating yourself on the topic of buying a commercial real estate. It has a ton of aspects that need to be taken into consideration prior to taking action. Consider starting with David Lindahl books on emerging markets and multifamily millions.
Best!
1 Reply
Annie Porter
OP
Member since 2019 · 5 posts · 2 votes
7y
Great thank you so much. I will get the book today
0 Reply
Jennifer Rysdam
Rental Property Investor · Cleveland, MN · Member since 2017 · 518 posts · 354 votes
7y
Originally posted by @Annie Porter:

I want to purchase a appartment complex. I have a Masters degree so I'm not seeking any more paid education. I'm a mechanical engineer designer with a architectural degree as well.
How do I get a commercial loan, buy land, find builders?
Or how do I buy a filled property, with investors money for the down payment?
Welcome to BP. The first suggestion I would make is to start listening to the BP podcasts. They are a wealth of information. Scroll through them and find ones that discuss your questions. You should also start researching which market area you want to buy in, what kind of property you want, and how much you want to spend. Sometimes that is just determined by where you are and what is available. Then make some appointments to talk to lenders. See what they can do for you now that you have an idea of what you want to invest in. Also start interviewing realtors and find one that knows about investing and takes the time to talk to you. A good realtor is worth their weight in gold. Good luck!
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Michael Swan
Rental Property Investor · San Diego, CA · Member since 2014 · 1k+ posts · 2k+ votes
7y
Hi @Annie Porter
I also advise Multifamily Millions and his Emerging Markets book by David Lindahl. Also, I highly advise to talk to investors that have already gone down the road you would like to travel.
I was on Podcast 238 and leave my phones available to talk to BP members every Mon, Tues, and Fri 3:15-6:15 in the afternoon to talk RE. Also, Wed 4:00-6:15 pm. That is PST. I live in San Diego.
I have 8 apartment complexes and am currently in negotiation for a 24 unit too. Right now I have 120 units and if I get this 24 unit, I will have 148 units. You could message people like me and pick our brains.
Swanny
2 Reply
Syed H.
Developer · NY/NJ/PA · Member since 2018 · 758 posts · 935 votes
7y
Don’t build for your first project unless you have actual experience building for a developer at a high level.
0 Reply
Scott P.
Rental Property Investor · Indiana...mostly · Member since 2019 · 468 posts · 245 votes
7y
Other folks are giving sound advice. I want to congratulate you on those degrees. Consider seeking a 9-5 with a commercial mechanical HVAC design firm or contractor. Or, consider using the Mech degree or Architectural degree to find a 9-5 with a General Commerical Contractor or Architect/Engineer firm. Your degrees are valuable. Jobs in industry will enable your to build money capital, help you learn about commercial loans, land, property and builders, and make contacts with the types of people some of the other folks are suggesting you study under.
You won't learn much about Landlording in those 9-5s but you'll learn about that on biggerpockets....
I haven't used Investor's $. I can tell you that a track record starting small and working up will help you w/Commercial Loan officers. There's a lot you can do without going commercial but I feel like you don't want to start residential.
Good luck!
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