How to quickly scale multifamily portfolio

Question

Hi savvy multifamily and apartment investors, I'm a 20th-year-old college student wanting to own a multifamily/ apartment complex and have tried wholesaling. Still, after a few months, I figured it wasn't the best fit for my interest as I'm interested in raising capital or using other people's money to buy multifamily. How can a 20th-year-old approach commercial loan officers and investors to lend the money to invest in a 8 or 10-unit apartment? I know there must be a way. but I don't where to start. I have been reading books on investing in multifamily and how to analyze and underwrite a property. I need some kind of guidance/ mentor in exchange I'm ready to use my talent to help increase portfolio. Please give me a chance to  get interviewed

Evan Polaski · Answer

@Gagan Yalamanchili, friends and family are where 99% of people start raising investor capital.

But raising capital is like any other sales process: you need to get people to know you (network a lot), like you, and trust you.  The like and trust part are hard.  Most people that have limited experience go the thought leadership route.

Start learning everything you can about real estate investing and then regurgitate it by writing blogs, starting or being featured on podcasts, blab about it on YouTube and social media.  I am not saying it is easy, and you will get called out by people that know more than you when you put something out there that shows your lack of experience.  But, sales/raising capital, especially when you are just starting, is a numbers game.  Build a big enough audience and you will have plenty of people that view you as an expert and will want to invest with you.

Robert Rixer · Answer

There is always a way. You could buy a 100 unit with $0 down and find a lender to finance it. Of course the bolder the target, the less likely it is and probably less than .01% of people could pull this off.

More realistic advice is to get as high of paying W-2 job as you can, save up, put 5% down on a 2-4 unit, manage the heck out of it, and then leverage that experience to do a larger deal using OPM.

Benjamin Aaker · Answer

Start going to real estate meetups in your area. You will find people to learn from and may meet someone who will be willing to mentor you. Good job on the reading. Mentors like interested people who know how to research. Save money to get that 20% down payment on a loan. Start small. Have you considered house hacking a 4 plex? If you do, you'll need to have less money saved for the down payment.

How to quickly scale multifamily portfolio

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