I have the cash, not sure where to go from here...

6 Replies

Hey all, thanks in advance for your time. Hopefully this post doesn't get too long...

I am a physician living in Texas and have always had an interest in real estate. I have never owned an investment property, but I have always entertained the idea. I am definitely interested in adding real estate to my portfolio, but I don't want to be a landlord (or buy REITs) and think Commercial Multifamily Real-estate is an avenue I want to pursue. However, I am a little overwhelmed by the amount of information you need to know or order to find these properties and make informed decisions (it is an entirely new language, and just like medical lingo, it takes time to learn). 

I really like the idea of investing with a "syndication" or large partnership where I can invest my cash in small to large apartments, and have the seasoned real-estate pros do what they do best (find the best properties).

The problem is, I am lost and need guidance about how to find an investment group which I can trust. I am definitely dedicated to learning all I can in this field, so I will feel intellectually involved with the purchases and can make correct decisions (I am sure much of this comes with experience). 

Basically: How on earth do I find partnerships/syndications/investment groups I can trust in order to pursue my goal of becoming involved with Multi-Family Realestate?

Also besides listending to the podcasts on this website, reading the "Ultimate Beginner's Guide," reading Steve Berges "The Complete Guide to Buying and Selling Apartment Buildings," are there any other resources you would recommend for me?

Thanks Again!

-Jeremy

I think getting your hands dirty with a SFR is ideal as a starting point. You don't literally need to do any work but it will give you great info on all parts of what happens from making an offer to getting a rent check. I have property managers and don't do any work myself, I want pros doing what they do best so I can focus on what I do best.

The reason Small to Large Mulifamily is appealing to me is the "economies of scale" so a vacancy doesn't kill me. I do not feel overwhelmed with buying a SFR, but the Multifamily Apartments are a whole other beast.

Jeremy Kenter I'm going to tag a few people for you perhaps they can offer some insight. I don't invest in syndications so I have no first hand experience. However I've been on the sight for a while and read a lot of the articles and forums written by the guys that invest in syndications. At this point if I did invest in syndications I would reverse engineer it and reach out to a select few. My understanding is most buy in amounts are around 100k just FYI. One thing I would do prior to investing is run the deal by my attorney to make sure everything is above board. Good luck Joel Owens Jay Hinrichs

@Jeremy K.

Study potential partners, connect the dots and see if they are legit.  

Frank

Jeremy,

Welcome to BP. Its a great place to get started and learn a lot. I'm also an MD and now transitioning to full time multifamily real estate investing. I bought 38 units this year and more coming.

You are on the right track with knowing REITS are more like stocks than direct real estate investing. Syndicates are ideal for group participation with seasoned professionals and a good way to go. You can learn a lot from being part of the group. There are many groups to choose from. Brian Adams is a member here and gave a recent podcast you can hear it on this site.

Download any apartment investing book to learn the language of NOI, cap rates, and debt service ratios. Its not brain surgery...

Good Luck.

Reach out if you need more advice.

Jay

Hello Jeremy and welcome to BP.  We could make a good combination. I am full time investor and landlord. You are choosing one of the best avenues for investing. Everyone needs a place to live.  If you provide good housing and good management, you will get satisfaction and money.

Join the Largest Real Estate Investing Community

Basic membership is free, forever.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.