Updated over 8 years ago on . Most recent reply
Not small apartment buildings
Hi all,
I'm fairly new to MF/small apartments and have typically focused on smaller deals, 50 units or less. Recently however, I've been introduced to some much larger deals (100, 160...). I've been told that I may have trouble getting funding since I don't have experience with that size property. Any suggestions on how I should proceed to be successful in the future?
Also, I can see that BP is a great resource that I will eventually learn all about (just signed up today) but right now I'm more focused on Action (eating my elephant one bite at a time!) with the Education being ongoing of course. That being said, what are your favorite things about BP that I should definitely check out?
Frank
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#2 Multi-Family and Apartment Investing Contributor
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- St. Paul, MN
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#2 Multi-Family and Apartment Investing Contributor
- Rental Property Investor
- St. Paul, MN
If you have bought deals that are close to 50 units, you will not have trouble with 100 unit deals if things are set up properly. Make sure that you money is lined up and you either have a sponsor or that you have the net worth and money to buy. Basically if you're buying a $5M building, your net worth should be around $5M and then you would need to have about 35% of the purchase and renovation in liquid funds (20-25% down payment, closing expenses and a reserve fund).