Beginning multi-family and apartment investing

2 Replies

Good morning!

My husband and I have been wanting to get into real estate investing and have been doing some research. I've been browsing this website and have found a ton of information and we have a realtor that has been sending us some property listings. We have gotten more serious about this pursuit lately due to a great loan option we have been offered. However, I'm wondering if anyone has advice on how to get started with the first multi-family unit and how to find a realtor that understands our desire. Currently our realtor doesn't seem to understand we want the cashflow in multi-family properties and wants to sell us a single family home. Any advice/tips would be appreciated.

Thank you!

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Hi James & Ashley,

First look at the money down to start. This will determine if you stay local or not for apartment investing. Next look at your cash on cash return annually desired pre-tax with the down payment requirement and amortization schedule.

Then define if you want a totally vacant building, value add 50% occupied etc., or fully stabilized ( buying the cash flow stream only and not as much forced equity upside).

Investor brokers and home selling brokers are worlds apart. Sadly many of these brokers/agents do not take advantage and invest themselves but live closing to closing.

The number of units will determine what type of broker/agent you want to get help. For example if you are looking at 4,8,15 unit size buildings that is generally one broker/agent and if you are looking at 70,150,300 units that is another type of broker/agent.

The inventory circles and how deals are structured and closed are completely different. A broker working on 5,10 million dollar deals isn't going to generally work on a 500k deal as it's not worth their time. They would be looking at a 15k check versus in into the hundreds of thousands for the larger deals.

Hope it helps. 

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