Apartment complex as first investement?

Question

Hey guys, 23 year old newbie here looking for some feedback on buying his first deal. Has anyone here done this: Buying an apartment complex as their first real estate investment? Any success stories, failures, what to look out for, how did you fund the deal, etc.. I've been looking for a deal in my area but haven't had any luck yet. When I do see a deal I want to be ready to attack and close the deal quick.

Any tips and/or feedback is appreciated guys. Thanks!

Randy Gillespie · Answer

Check out podcast 172.  About a Biggerpockets member who did just that as his first investment.  Not easy but doable.

Thomas S. · Answer

Only tip is education. You had better know every aspect of owning and operating a building or you are facing a extremely steep learning curve.

If you want to find a deal your best, really only option of value, is your local real estate investors club. Get to know the members, maybe work in some capacity on one of their buildings or find a mentor willing to teach you the ropes.

My first investment was a 30 unit and even with extensive back ground and research the first few years were extremely challenging.

Jennifer Brown · Answer

@Marc C.  How did you get funding for your first deal being that large? I've read that lenders want to see experience managing properties that are larger than 4 units. Did you have an issue with this?

Chris Tracy · Answer

Sounds good!

Marc-Andre Bordeleau · Answer

Awesome Chris. I'll keep looking and studying and when I find a deal I think is worthwhile I'll shoot you a PM! Thank you very much.

Chris Tracy · Answer

@Julie L.- Awesome... Sounds good!

Chris Tracy · Answer

@Marc-Andre Bordeleau- I'll help you.  All you have to do is find the deal.  Buying apartments is extremely competitive... I'll help you get across the finish line... We just need something where the numbers work.

Marc-Andre Bordeleau · Answer

The funds are low at the moment but I plan on hopefully partnering with some experienced investors like you did before making the jump. I've been listening to a BP podcast every night for about 2 months now and as far as books go I finished reading "rich dad poor dad" last week. If you have any book recommendations as far as apartment complexes go let me know !! Thanks.

Marc C. · Answer

I bought a 12 unit as my first investment, with 2 partners. It was a great experience because I got the property management company involved early...they walked the property and helped me inspect it, made a budget for the year, and steered me towards good contractors, etc.

Of course, this assumes you have money. If you do not, you need to first find your money partner.

But first comes education: How many books on apartment investing have you read? Which podcasts do you listen to every week? Have you taken any courses? I educated myself for about a year before I jumped in.

The only regret I have is selling the building when one partner wanted his investment back out after only a year so he could blow his lifesavings on a brewpub.

Apartment complex as first investement?

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