Starting in multi family

[Stephen D.]

Hi all, I have been doing a lot of research on multifamily investing and underwriting deals for almost a year now. I’m trying to find my way on how to acquire my first deal. My problem is no money and no track record. I’ve been told that if a deal is attractive enough and has had about 5 years or more of 90 percent occupancy a bank would consider lending. I’m looking to acquire my first deal in my area which I’m very familiar in. I have been attending local REIAs but no one seems to show interest in large multifamily and there are no multifamily investment meet ups in my area. My main issue is finding private money for the down payment. Would it be worth trying to use a hard lender? Would they even lend me anything?

[Todd Dexheimer]

I think one of the biggest misnomers is that the money will find a good deal. Banks will not lend on a good or even great deal if you or your partners don't have a track record and money. Raising money for a great deal is also hard, if you don't have a track record or some major trust. 

Stop looking for the deal and start analyzing ever MF property for sale, educate your self and find partners that have money and a track record.