book suggestions for apartment complex

13 Replies

need some book advice. hello everyone! long time bigger pocket podcast listener looking for boom recommendations. im going to pitch to some investors in a couple months on acquiring a large apartment complex. looking for a book that will teach me how to find and analyze aparrments and how to show in real numbers the roi, cap rate, cash on cash etc and be abke to prove how they will make more money than they do in stocks. also want ro be able to analyze different complexes for deals. thanks in advance.

@David Morehead what is your real estate experience ? Do you have any multifamily experience ? Pitching a group of investors on large MF with only an education from a book is not something I would recommend.

If they ask- what is your experience and you said “well I read this book...”.

Put it this way - if you stepped on a southwest flight and asked the pilot his experience and he said “none but I read a book”, would you feel comfortable. Not trying to be a jerk but trying to save you from wasting a lot of time.

@David Morehead I second what @Chris Seveney said above. 

In terms of the books recommendations, here're just a few: "The ABC of RE investing" by Ken McKelroy, David Lindahl on emerging markets, Steve Berges on buying and selling apartment buildings. 

@David Morehead I don’t think there are any good books. I would recommend just joining a mentorship group so you can learn from peers. A lot of people bash those sorts here but for MFh it’s needed unlink sfh where you don’t need it.

Thanks everyone for the awesone advice. I really appreciate it. Ill let everyone know how it goes. BTW closing soon on our first property for a flip. Looks good. First one is the most important right!!!

Originally posted by @David Morehead :

Thanks everyone for the awesone advice. I really appreciate it. Ill let everyone know how it goes. BTW closing soon on our first property for a flip. Looks good. First one is the most important right!!!

 Good luck!

@David Morehead You've been given great advice by @Chris Seveney (lol @ SW pilot analogy - on point!). 

Honestly, figure out your strength. If it isn't financial analysis, don't focus on it. Maybe you're good at developing relationships, raising capital, property management etc. Don't focus on your weakness. E.g. my background is in finance and my partners have backgrounds in marketing and engineering. I don't want to do their job and they don't want to do mine. But together we make a formidable team. 

Don't want your time on cliched books. Find a partner with complimentary skillset and go from there.

so im pretty good at the financial analysis, my wife is good at the paperwork part and my partner is the outgoing networker. What im really looking for is a book that shows me how to analyze and find deals on multi family. We are working hard and doing well in the single family flip market but im trying to develp a plan i can put into motion for larger multifamily in the next 6 months while we continue to do flips on single family to build capital. I hate my job and really want to retire by march 2020. Because nursing sucks. Lol.

Multi-family Millions by David Lindahl. ABC's of Real Estate Investing by Ken McElroy and Advanced ABC's of Real Estate Investing. 

@David Morehead

While not a book, you may find a BiggerPockets primer I wrote helpful -- the 18 most important numbers to calculate for multifamily, and their formulas. Keep in mind that some, such as Internal Rate of Return (IRR), require advanced computer calculation.

https://www.biggerpockets.com/blogs/8814/73755-18-essential-metrics-to-a-complete-real-estate-investment-analysis

As far as finding multifamily properties, you'd find them the same way you find a SFR, and there are many, many ways to source them:

By building relationships and letting everyone know you're looking for houses and apartments:

https://www.biggerpockets.com/blogs/8814/72664-35-relationships-to-help-you-find-more-houses-to-flip-or-wholesale

Looking for them on the internet:

https://www.biggerpockets.com/blogs/8814/72016-55-resources-to-find-real-estate-deals-online

and, of course, locating them offline:

https://www.biggerpockets.com/blogs/8814/71506-27-ways-to-find-off-market-and-wholesale-real-estate-deals-offline

Best of luck!

@David Morehead

Books: 

Articles:

Spend time poking around the Internet + networking with local multifamily investors to understand how to underwrite and what assumptions to use. 

PM if you need anything.

thanks to my bigger pockets family for the words of wisdom!!!! 

Hi @David Morehead ,

I recommend "Crushing It in Apartments and Commercial Real Estate: How a Small Investor Can Make It Big" by Brian Murray.  I would also listen to his podcast interview on the BiggerPockets podcast.  I think that this is a great book for getting the basics of commercial and apartment investment.

See my top 10 list on insta g. I have a couple other reading lists that pair well with real estate investing and running a real estate business (two distinct disciplines!). I'm easy to find if you search by my name. :)

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