Intro information for Investors Transitioning into Commercial

7 Replies

I'm a single family investor now ready to transition into Multi-family and looking for some good informational resources to get started. I know that this question isn't very original one but when I search this topic on BP, I keep landing on posts that are 3+ years old. Hence, I'm curious if there are any updates to the list or if I should just stick to the favorites. Basically, here's what I'm considering after reading comments from other BP members. However, I'd rather not invest my time in anything that would just be redundant or too advanced for a first time commercial investor. I'd even be open to attending some seminar if someone thinks that it be worth my time.

-Ray Alcorn's: Deal Maker's Guide (This was authored in 2005, is it too dated or still have plenty of relevant content?)

-The ABC's of RE Investing

-David Lindahl's: Multi-Family Millions, Emerging RE Markets, Apartment Houses Rich Course
-Steve Burges: Complete Guide to Buying and Selling Apartments

Any endorsements or suggestions beyond this list would be greatly appreciated.  Thanks!

@Michael Malloy

I made that transition myself and used Dave Lindahl's coaching program.  His information is excellent and without that coaching I wouldn't have gotten from the 9 units I had when I started with him to the 80 I have now.  There aren't a lot of great books out there on apartments, but my favorite RE book is 'Millionaire Real Estate Investor' by Gary Keller.  Feel free to PM me if you have specific questions.  

Thank you both for your responses! 

@Michael Bishop . I just subscribed to your blog. Also following David now.

@Louise Alexander , I'd like to start with one of DL books to give me the basic foundation. If you had to say which the best one to start with was, which one would it be? Also, did you attend one of Dave Lindahl's Live events (https://rementor.com/events.php ) or just took one of his courses?

While I'm only about 2 years into my RE investing career, I've already been through a couple of paid events (only SFR flipping, not commercial multi-family yet) which certainly propelled my career forward but also included a whole lot of sitting through a bunch of 'Get Rich Quick' sales pitches to buy even more educational products. Hence, I want to invest my time and educational dollars as efficiently as possible to more rapidly get to a point where I'm actually comfortable enough to pull the trigger on a deal. I'm not saying that I don't appreciate some of the motivational content but at this point I'm already sold on RE investing and just want as much substance as possible.

So, in a nutshell, for me and anyone else who stumbles across this post in the future: Knowing what you know now, what book would you start with and then what would be your next 2-3 steps after that?

@Michael Malloy I would also recommend attending local meet-ups. You'll meet other like minded people, potential even deal partners, and avoid the "sales pitchy" environment of some of the larger seminars.

Hi @Michael Malloy

I'm also on that path to jump to Multifamily. The person I have followed is Grant Cardone.

@Michael Malloy

I've read all Lindahl's books and thought the first one was the best.  I think its called 'Multi Family Millions'.  Then I did the $1K home study course because I was so impressed with the book.  And then I signed up for his coaching program!  I've done all the events except for the private money one.  If you have any other questions, feel free to contact me.....  

@Michael Malloy Here is how I did it and hopefully it helps you make the jump as well.

First, I took  a little bit of time to educate myself by reading books and browsing forums. Then, I started asking more and more targeted questions on forums to get answers that I wasn't clear about. Then, I signed up for one of "Rich Dad Poor Dad" seminars, so that I could just get different perspectives on the path I was planning to take. I never intended to pay for their advanced classes or services. Took me about 45 days.

Then I reached out to people I knew and asked them to recommend me a Commercial Broker, which I then hired to start looking at multi-family apartments. I started off with a small budget and made it a point to analyze at least one property per month. We reached out to selling agents, signed the CA, got the financials, visited the properties, talked to banks and got preliminary paperwork started to be able to write a LOI (Letter Of Intent). I made a few offers, that were rejected. In addition to what my Broker was presenting me, I spent some time searching for properties on loopnet, reached out to the seller brokers and got the financials, which I used for analysis and comparison and "further my education".

I quickly realized that my budget wasn't good enough in my targeted market to get on the really good deals. I worked with the Brokerage to sell the Single Family homes I had, so that I could do 1031 exchanges. With added budget, I could now bid on better Apartments and Office Buildings as well. After one year, I finally closed on my first office building and currently on my way to purchasing a second one.

As you analyze deals, make sure to also look at all the creative financing possibilities. There are so many ways to finance deals. The big key in commercial is the value add aspect... 

Good luck. 

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