How did you get into multifamily?

Question

I'm curious, how did everyone here get into commercial multifamily investing? Are you full time in real estate? How long did it take to go full time? Did you join any coaching programs?

Thanks for any input!

Alecia Loveless · Answer

@John Lasher I bought a SFH and then a duplex about 6 years ago. Around this time I discovered Bigger Pockets and a bunch of real estate platforms online.

I joined 2 mentor programs over time. The first closed shop 2 weeks into my mentorship and stole my money and removed all of their content from online. The second was Hugh Jones and it started out ok but eventually they started really pressuring me to buy Big deals, 30-100 units. Despite my explanation that I had the funding for smaller deals, 10-20 units they doubled down on me needing to find investors to partner with or to form a syndicate. After about 8 weeks I just stopped participating.

On a different journey I completed AJ Osbornes self storage program and thought it was very useful.

I’ve since just gone it alone with help from books and what I see/read online. I’ve got a great team including contractors, real estate agents, and lenders.

I’m not the biggest fish in the sea but I’m doing it fairly well with 8 buildings and 31 units. I’m currently biding my time waiting to find the next deal.

Tim Ryan · Answer

John, I have (I think) a longer, interesting story about how I did. But in a nutshell I joined RE Mentor - David Lindahl from Boston area. His program taught me everything I needed to know, I met a ton of people, and found a partner. Together we owned 330 units in Chattanooga (before it was cool) and did extremely well there. We sold out in 2018 and now in a new market but we still own together a 42-Unit.

The coaching program was for sure the best thing I ever did. Coming up with the money for tuition was hard as my business (construction) was not doing great at the time.

My whole life changed when I went for it.

Patricia Steiner · Answer

I only invest in opportunities - not property types.  "Getting in" is easy; making money, managing the business, with the increased financial risk of commercial properties is a whole different game.  My recommendation to serious real estate investors is buy an opportunity in any segment, do the math (it's all about the ROI; some investors fall for the 'commercial' is more prestigious chest thump to find that losing money isn't very prestigious at all), and plan on proactively running a business.  This is not a side-hustle.

Eric Bilderback · Answer

I wanted to or thought I wanted to at one point try and get to that level 100s of units.  But you can't do that without investors assuming your average guy/gal and I don't think I'm cutout for that and that is a lot more hands on.  I bought my first "investment 9 years ago and I can now say that property has changed my life.  And I 100% believe for average people owning real estate over a 10 year time horizon is the best opportunity to bring wealth, freedom and margin to their life.  Debt will get paid down, rents historically will go up, and values historically will appreciate.  Assuming that continues and you manage your properties competently people will think you are way smarter than you are in 10 years.  Love this stuff! LOL

Marcus Auerbach · Answer

@Eric Bilderback - there was a time when I felt I really should "gratuate" into MF, but I never did and stuck with nicer SF in the suburbs. Any  MF of the quality and size (50 up)  I would have been interested in would have been cash flow negative for the next 5 years or so, even with 30% down. SF investing supports my lifestyle goals better than MF, because it is a lot more passive and I can focus on my other businesses.

Which brings me to the next point. The time to scale quickly with REI is over. But 2025 offers other opportunities that did not exist 10 or even 5 years ago - think AI and online businesses. This is where you generate cash and you can then invest it in RE - or something else.

Most of the guru content was written a decade ago and it just does not apply the same way it did back then. So don't beat yourself up, it's not you, it's the market.

Like someone else said very well, invest inopportunities, not in a particularasset or strategy.

Mike Dymski · Answer

I own a 30-unit community and found it much easier and more cost effective than the 1-4 family and flips that I was doing before that acquisition.  No coaching program, called multifamily brokers in my areas, have a regular job, and have 3rd party PM.

Tim Ryan · Answer

Doing both. But since I am in the fire area of Altadena I will be very busy rebuilding houses for the next decade for me "day job". I'll never stop investing in rentals though and providing properties for my investor friends. I'm currently investing in the Milwaukee area.

Eric Bilderback · Answer

I bought 15 unit and have slowly crept up to 40-50 units.  I do STRs, building some now.  The numbers are a lot tougher then they used to be.  If you have a chunk of money to get going I'd personally buy the biggest thing you can if you don't I think house hacking into a 4 plex is great.  On the bright side I think many of the scammers that sell you on owning 1000 units are being wiped away and maybe that kind of an opportunity will come back.  Personally have not seen anything I believe is legit (but I only invest locally).

John Lasher · Answer

Are you still buying mobile home parks today? What year did you buy your first one?

How did you get into multifamily?

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