If you had to restart your apartment investing career and you were a young eager lad trying to get in the game. What would be your first step to taking action?
Please roast me if you think I’m way off(I’m the young eager lad)
-Talk to people who own and invest in apartments
(I.e. phone call, take them to dinner, meet on bp)
-find a market to start looking in
-decide wether or not if I want or need a partner
- find a commercial agent
-decide my price range and asset class
-Narrow down what I’m looking for
How many units
Cap x and if I can lower the costs
Possible forced appreciation.
What am I missing, my hardest thing is have no credibility. I own 1 4 plex, but that doesn’t even put me in the big dog ball park. I have money to invest, but why would someone think I’m a good partner.
Better question, what can I do to become the best partner out there for a apartment complex investor.
@Patrick Flanagan Narrow down what you are looking for, Connect with Commercial lenders, Connect with a broker, Capital, Find the deal!
Thank you for the response Darryl
Having owned a 4-plex, your next move to a 5+ unit MF is the logical next step. That being said, a lot changes for you, especially around lending. Talk with a quality commercial loan broker (DM me if you need some options), there are plenty here on BP, and get an understanding of both bridge/hard money and long term financing options for 5+ units. You will need a lot more $ down vs 1-4 units. But this is how you scale up. Next, consider bringing in friends and family to help you buy; this is not a long shot since you have some experience with a 4-plex. Plenty of people out there want a piece of real estate investment but don't have the time or experience to be an active investor.
I think you are on the right track with your questioning. If you want to partner with experienced operators then you need to start networking with them and show them you can add value in some way. Like you said, narrow down what you want, the market, etc. and educate yourself in the area so you can show you are an expert in the field. Then find the people doing what you want. When you approach other investors or brokers they will be more receptive when you can speak the lingo and they know you know what you are talking about. There are many ways to add value to other investors to get your foot in the door. You might be experienced in contracting for value add plans, be able to raise capital for a deal, etc. Start going to meetups and networking with other like minded people. You will be surprised by the opportunities that can arise. Good Luck.
Awesome info, could I message you about what all it takes to secure commercial lending?
Thank you for responding Jackson!
That’s a great idea I need to join a local real estate investment group
Why not look at other asset classes? If you want to make money, buy office. Multi family is incredibly competitive right now and based on your post you don't have a unique skill to win deals (nothing personal, most people don't)
As you stated, capital is plentiful, why would someone take a chance with you when they have dozens of proven operators to choose from?