Best Way To Get Into the Multi-family Investment Space

21 Replies

Good morning everyone!

My name is Charles Peralta and I want to break into the multi-family investment space. 

I'm currently working in the mortgage industry and will be making a move to Denver, Co next year. I wanted to see how others got started in this industry and any tips for someone who's looking to get started. I have a finance degree and dedicate serious time and effort to my sales training. With that being said, I have a lot to learn and would love to see what are some good ways to get started. Thank you in advance :)

Small MF or Med-Large(Over 5 units)?

@Charles Peralta - Look into house hacking. Great way to purchase a 2-4 unit property. Live in one unit and rent out the other. That's a very common term here on BiggerPockets. There are hundreds (if not thousands) of forum posts, blog articles, webinars, podcasts, etc. all on this concept. Familiarize yourself over the next couple of months and get it done! 

Looking forward to having you in Denver! 

Originally posted by @Matt M. :

Small MF or Med-Large(Over 5 units)?

 I would like to focus on medium to large 5+ units apartment buildings. Whether syndicating or working as a broker and eventually earning enough and making enough connections to syndicate. 

Originally posted by @Craig Curelop :

@Charles Peralta - Look into house hacking. Great way to purchase a 2-4 unit property. Live in one unit and rent out the other. That's a very common term here on BiggerPockets. There are hundreds (if not thousands) of forum posts, blog articles, webinars, podcasts, etc. all on this concept. Familiarize yourself over the next couple of months and get it done! 

Looking forward to having you in Denver! 

Thank you for the warm welcome! I've had the pleasure of listening to multiple BP podcasts that have featured this idea and it's definitely something I'd like to deploy for my personal living. My question was guiding a little more towards commercial apartment buildings and how to get started there. 

@Charles Peralta It's easy to become a commercial broker. Having success is a different story. From my limited experience in that world, focus on two things:

1) Having a minimum of 1 years living expenses set aside and plan on living like you're back in college for the first couple of years. As a broker, you're a 1099 contractor. Make 300+ phone calls per week for a year and you'll start seeing results. 

2) Start networking so you can get in with a good commercial broker. I'd start cold calling them to see who you can through to. They'll beat you up, but respect you.

Originally posted by @Chris Lopez :

@Charles Peralta It's easy to become a commercial broker. Having success is a different story. From my limited experience in that world, focus on two things:

1) Having a minimum of 1 years living expenses set aside and plan on living like you're back in college for the first couple of years. As a broker, you're a 1099 contractor. Make 300+ phone calls per week for a year and you'll start seeing results. 

2) Start networking so you can get in with a good commercial broker. I'd start cold calling them to see who you can through to. They'll beat you up, but respect you.

Thank you for the advice! I'll definitely keep that in mind going forward and hopefully hit the ground running.

I also like what you've been doing with your YouTube videos, thanks for putting those out there! I hope someday we can connect and make some deals happen!

Originally posted by @Chris Lopez :

@Charles Peralta thanks for the compliment!

What's your timeline again for heading out to Denver?

Of course! And I'll be there no later than the end of Summer next year. I'm finishing up my finance degree right now and will be moving out once I'm all done.

It all depends on how big of a multi family you are looking at getting into.

I got started by getting involved with others in the industry. Happy to discuss how who you can connect with.

Hey @Charles Peralta . Good to see you on here again. I know a guy here locally who does some syndicating in large apartments. I can maybe do an intro for you a little bit closer to when you head this way if you would like.

@Charles Peralta there a plenty of ways to get involved, but here are a few that I imagine could be befitting to your situation:

1. Find off market deals and bring them to major MF syndication players.

2. Learn to conservatively underwrite deals and offer your services to major MF syndication players.

3. Raise equity to help fund an established syndicators deal(s).

All of these options will help build your credibility, show that you have experience in the niche (for when you want to branch off on your own), and provide you with the opportunity to learn from a team with a proven track record.

Originally posted by @Ian Walsh :

It all depends on how big of a multi family you are looking at getting into.

 My goal is to be one of the top players in this space!

Originally posted by @Jared Bouzek :

Hey @Charles Peralta. Good to see you on here again. I know a guy here locally who does some syndicating in large apartments. I can maybe do an intro for you a little bit closer to when you head this way if you would like.

 Hi Jared, happy to hear from you and that would be awesome! I would love to hear about his experience in the market and how I may be of value to him. I'll definitely message you once I'm closer to getting out there, thank you!

Originally posted by @Michael Bishop :

@Charles Peralta there a plenty of ways to get involved, but here are a few that I imagine could be befitting to your situation:

1. Find off market deals and bring them to major MF syndication players.

2. Learn to conservatively underwrite deals and offer your services to major MF syndication players.

3. Raise equity to help fund an established syndicators deal(s).

All of these options will help build your credibility, show that you have experience in the niche (for when you want to branch off on your own), and provide you with the opportunity to learn from a team with a proven track record.

Hi Michael,

Thanks for the reply. That is some great advice that i'm going to keep in mind going forward! Have you used these methods before? And if yes, what are some tips for executing them? Thanks in advance! 

@Charles Peralta you really do need to join a mentorship group unless you have experience, net worth.

Brokers won’t take you seriously if you don’t have the track record behind you of other partners.

@Matthew Teifke

Hi Matthew, and @Charles Peralta sorry to hijack your thread...I was hoping that Matthew could dig in a little further and share some of his thoughts on how to connect with these individuals (mentors, key principals, and other investors). 

Thanks!

Let's connect. Happy to help any way that I can. 

@Michael Bishop Makes solid points about how to create value for multifamily investors.  I would focus on these activities if you want to be an investor which is a different skill set than being a broker.

@Charles Peralta The best way to start is with the help of someone more experienced. I would recommend finding a partner and offering them value (underwriting deals, marketing help, raising capital, etc). Another avenue is to find a successful syndicator and ask how you can help them. 

If you want to go at it alone, find a good PM and broker and start building relationships. Brokers have deals, but to get the better ones, you're going to need a solid relationship in place.

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