A comprehensive guide for multifamily investing

Rental Property Investor · Bedminster, NJ · Member since 2014 · 42 posts · 5 votes

I am seriously considering acquiring large multifamily (6 unit plus) with private partners / money. So far I have read the ABCs of Real Estate Investing and The Multifamily Millions. However these books don’t go into the details on how to talk to a broker, how to structure an operating agreement, how to prepare a sample deal package etc. Is there a book or guide that go into the “needy greedy”? Or should I search for the specific things when I need them? I do not want to take a course with a guru yet - but maybe that’s the best option?

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Carlos Clarke

Rental Property Investor · Charlotte, NC · Member since 2016 · 4 posts · 10 votes

@Handie Kunen...I found Michael Blank to be a reliable source. I’ve invested into his Apartments Complete Guide, however his new book “Financial Freedom with Real Estate” provides a practical Blueprint to buying apartments. There’s also a free online companion course that comes with the book. A great source! I view it as a mini course. I also just finished the “Best Ever Apartment Syndication Book” third editon by Joe Fairless and Theo Hicks. This book is 428 pages. This book is packed with everything you need for Apartment Syndication. I’ve also found the free content on the Best Ever Apartment website to very helpful as well. Both books talk about building an A-Team when startinf out to get that first deal under belt. Surround yourself around very knowledgeable professionals (Brokers, other Experienced Investors, Property Managers, etc) to assist you as you get started. Educate yourself and build relationships with other individuals that you can trust. I hope this helps.

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Michael Strachan
Specialist · Santa Clara county, CA · Member since 2017 · 81 posts · 57 votes
7y
I would recommend starting by talking to an agent who's experienced in commercial real estate transactions. They could answer your more specific questions as they come up and hopefully offer you some insight that is specific to your local market.
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Carlos Clarke
Rental Property Investor · Charlotte, NC · Member since 2016 · 4 posts · 10 votes
7y
@Handie Kunen...I found Michael Blank to be a reliable source. I’ve invested into his Apartments Complete Guide, however his new book “Financial Freedom with Real Estate” provides a practical Blueprint to buying apartments. There’s also a free online companion course that comes with the book. A great source! I view it as a mini course. I also just finished the “Best Ever Apartment Syndication Book” third editon by Joe Fairless and Theo Hicks. This book is 428 pages. This book is packed with everything you need for Apartment Syndication. I’ve also found the free content on the Best Ever Apartment website to very helpful as well. Both books talk about building an A-Team when startinf out to get that first deal under belt. Surround yourself around very knowledgeable professionals (Brokers, other Experienced Investors, Property Managers, etc) to assist you as you get started. Educate yourself and build relationships with other individuals that you can trust. I hope this helps.
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Bo Goebel
Rental Property Investor · Nashville, TN · Member since 2017 · 108 posts · 66 votes
7y
@Handie Kunen I would not reach out to a "guru," yet, because there is a steep learning curve while learning the beginning phase that is a fundamental (or basic) level. Gurus or coaches can be expensive, and you'd rather not waste their and your time by asking simple concepts that a good book/podcast will answer 99% of the time. You need to be able to have the conversation before learning how to use specific techniques. Then take on a coach/mentor/guru. Your time and money will be much better spent.

As far as books go, @Carlos Clarke named two excellent ones. Especially @Theo Hicks & Joe Fairless about Syndication. It is an absolute must read if you are getting into it. Additionally, read crushing it in apartments commercial real estate by Brian Murphy.

A great complement to the books are podcasts- which I would recommend Biggerpockets (of course), Best Ever (Joe Fairless and Theo Hicks), Rod Khalif, Wheelbarrow Profits with Jake and Gino. Tons and Tons of info out there. Immerse yourself in it... if you still have an interest, you'll have a better idea where to "start."
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Ashley Pimsner
Rental Property Investor · Saint Charles, IL · Member since 2014 · 304 posts · 222 votes
7y
I purchased the book Multi-family Millions by Dave Lindahl prior to purchasing my first apartment building and found it to be extremely helpful.
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Account Closed
Multifamily Syndicator · Conifer, CO · Member since 2018 · 80 posts · 84 votes
7y
@Handie KunenI started by going through @Michael Blank's Ultimate Guide to Buying Apartment Buildings Course and can't say enough good things about it.
Worth every penny and really comprehensive.
From there you learn by aligning yourself with the right partner and getting out there and doing it.
I hope this was helpful.
Don't hesitate to reach out-
Dino
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Carlos Clarke
Rental Property Investor · Charlotte, NC · Member since 2016 · 4 posts · 10 votes
7y
@Bo Goebel @Dino Pierce...Agreed...Thanks 😀...First ”LEARN” and then remove the ”L”...
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Handie Kunen
OP
Rental Property Investor · Bedminster, NJ · Member since 2014 · 42 posts · 5 votes
7y
@Michael Strachan thanks Michael. That’s solid practical advice.
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Handie Kunen
OP
Rental Property Investor · Bedminster, NJ · Member since 2014 · 42 posts · 5 votes
7y
@Carlos Clarke Yep, I have heard about the book. I’ll pick it up and start reading.
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Handie Kunen
OP
Rental Property Investor · Bedminster, NJ · Member since 2014 · 42 posts · 5 votes
7y
@Bo Goebel Thanks for the recommendations, Bo. I have used most of the resources you mentioned with the exception of a few. Will look into them.
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Handie Kunen
OP
Rental Property Investor · Bedminster, NJ · Member since 2014 · 42 posts · 5 votes
7y
@Ashley Pimsner Yes I am reading it now and it reconfirmed very strongly why INVESTING IN multifamily. Also there is a ton of valuable tips in there.
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Handie Kunen
OP
Rental Property Investor · Bedminster, NJ · Member since 2014 · 42 posts · 5 votes
7y
@Dino Pierce Great to hear Dino. I use a lot of his free resources too but yet to pull the trigger on any paid courses. Have been burned by “gurus” before. I think eventually I will but more for the paid hourly coaching when i actually found a deal. Have you done your first deal yet?
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Handie Kunen
OP
Rental Property Investor · Bedminster, NJ · Member since 2014 · 42 posts · 5 votes
7y
@Carlos Clarke haha that’s a good one. Never heard of it before.
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Ashley Pimsner
Rental Property Investor · Saint Charles, IL · Member since 2014 · 304 posts · 222 votes
7y
@Handie Kunen,
Try not to let paralysis vs analysis keep you from pursuing an apartment deal.
Why are you talking about operating agreement and sample deal package (unless you are using OPM) because those are not necessary to purchase a deal.
The reality is all you need to do is underwrite deals, maybe a 100 or more with BP calculator, and when you find one where the numbers work then make an offer and sign purchase agreement.
All other steps for due diligence to closing can be found in Multi-Family millions, that's it.
I spent a year worrying about land trusts, LLC's instead of closing deals.
Buy a large umbrella policy for now, close on a cash flowing deal, and if you want "perfect" structure in the future adjust accordingly.
Best of luck!
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Cory CarlsonBusiness Member
Real Estate Broker · OR · Member since 2018 · 311 posts · 226 votes
7y
If you have the money to put down and are serious i would find a broker with experience. They can be worth their weight in gold. Proper analysis takes time and experience to develop the skills. As my principle tells me, garbage in - garbage out. Also, they have all the inside knowledge on the market and what's coming soon. If you have the cash and are serious about building wealth in Real Estate you are not waisting their time. We help both first time & savvy investors quantify their invested equity and plan the ideal buy/hold/sell situation that coincides with their risk tolerance and time horizon.
503-222-0282
Constant Commercial Real Estate Inc543 Reviews
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Alina Trigub
Rental Property Investor · Glen Rock, NJ · Member since 2015 · 3k+ posts · 2k+ votes
7y
@Handie Kunen The books mentioned in this forum are really good and definitely supported by the podcast from more or less same people:
Joe Fearless,
Rod Khleif
Jake&Gino
Michael Blank.
Aside from that, you have to start networking with like-minded investors that are already doing what you're looking to achieve. Find REI clubs local to you either via BP or Meetup sites and join them to network.
Best!
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Handie Kunen
OP
Rental Property Investor · Bedminster, NJ · Member since 2014 · 42 posts · 5 votes
7y
@Ashley Pimsner Yeah I planned to use OPM hence the ask. I’m doing smaller deals now (under 10 unit) by myself or with one equity partner but eventually want to get into larger deals. But point taken I do need to get the deal first!
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Handie Kunen
OP
Rental Property Investor · Bedminster, NJ · Member since 2014 · 42 posts · 5 votes
7y
@Cory Carlson I do plan to start with my own cash for 5-10 units first and then use OPM for larger deals. Are you a broker? What market are you in?
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Handie Kunen
OP
Rental Property Investor · Bedminster, NJ · Member since 2014 · 42 posts · 5 votes
7y
@Alina Trigub Thanks Alina. I joined your virtual meetup on Meetup.com and I have been to various meetups in NJ and PA. I currently own a 4 unit and 4 SFHs but am trying to scale and go into larger commercial multi’s, first with my own cash and then OPM. I have had some leads for 6-plexes and 8-plexes but still yet to find a good deal to go forward with. But I figure I should just start preparing for my future syndication plans as people have been saying that one should be raising money always.
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Alina Trigub
Rental Property Investor · Glen Rock, NJ · Member since 2015 · 3k+ posts · 2k+ votes
7y
@Handie Kunen That's a good approach to advance prepare and also built up your credibility. By establishing relationship with investors now and sticking to the terms, you're building your track record and also indirectly making your investors want to come back to you and bring others along (as long as they are happy with your returns).
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Cory CarlsonBusiness Member
Real Estate Broker · OR · Member since 2018 · 311 posts · 226 votes
7y
Originally posted by @Handie Kunen:
@Alina Trigub Thanks Alina. I joined your virtual meetup on Meetup.com and I have been to various meetups in NJ and PA. I currently own a 4 unit and 4 SFHs but am trying to scale and go into larger commercial multi’s, first with my own cash and then OPM. I have had some leads for 6-plexes and 8-plexes but still yet to find a good deal to go forward with. But I figure I should just start preparing for my future syndication plans as people have been saying that one should be raising money always.
Have you considered selling several of your current holdings (perhaps SFH's) and a 1031 (if you have capital gains to defer of course) into a larger multiplex? A proper analysis would show your returns on invested equity of each SFH AND cumulatively which could be compared to the returns of a multimillion dollar apartment complex. We usually see the returns vastly improved and better use of your time. Managing one large with property management is easy compared to 4 SFH's and if it pencils better for your wallet!
Cory
503-222-0282
Constant Commercial Real Estate Inc543 Reviews
Website View Page
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Account Closed
Multifamily Syndicator · Conifer, CO · Member since 2018 · 80 posts · 84 votes
7y
@Handie Kunen
I have done several!
Understand your POV and please know I was only openly/honestly sharing my experience.
I don't work for him or get a referral fee or anything like that.
I understand you've been burned by gurus but for me it was well worth the investment.
I also recommend attending conferences to meet potential partners and network.
Feel free to reach out -
Dino
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Handie Kunen
OP
Rental Property Investor · Bedminster, NJ · Member since 2014 · 42 posts · 5 votes
7y
@Cory Carlson Yes we have considered selling them but we were such newbies then we didn’t buy right. Cash flow wise they are ok but they are in the hood and hard to sell without incurring a loss.
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Handie Kunen
OP
Rental Property Investor · Bedminster, NJ · Member since 2014 · 42 posts · 5 votes
7y
@Dino Pierce that is so encouraging to hear. I knew someone from a local meetup who took a $30k course / coaching program and said it’s well worth it too. I am more risk averse so I want to first use my own money to get to the number of units I need and then OPM. I am just getting the education now.
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