I am new to Bigger Pockets forum and trying to get started in multi family space. Before this, I have invested only in single family rentals. Listening to many Podcasts and Grand Cardone in particular, I strongly feel (personally) that multi family is the way to go-If one wants to scale up and take up RE as full time career. Currently, I am working in a full time job and live in Mechanicsburg, PA
I have access to certain investors who are ready to invest with me. Even though I have gained some real time SFR knowledge, I am still learning Multi family investing by reading books and listening to podcasts. To get started, I am looking for a partner who I can work with to put together a MF deal where we all could benefit including investors. Here are the specifics below:
-I have access to around 150-200K initial investment including my own money.
-As this will be my MF first deal, I am preferring to do within 100-150 mile of where I live (even though I am open to other deals as well that are outside my 150 mile zone in emerging markets)
-I go to Real estate meet ups in my area, If anyone is interested we can definitely meet.
I would really appreciate If people can share their experiences with multi family and give any valuable advice. Thanks
How big do you want to go on your first one? You initial investment and close radius requirement make me think you're starting somewhat smaller.
I knew I wanted to go bigger, and have professional management, so I invested with others first (through syndications), until I was able to go into large multifamily.
It sounds like your partners will be passive, so make sure you structure the deal accordingly. Note that your attorney fees will be a larger portion of your equity raise since you're starting small. I haven't been quoted under $7,500 for subscription documents. If that holds true for you, you'd be paying a 3.75% fee. We pay around $12,500 for a $5M equity raise, or a 0.25% fee.
Thanks for replying Sam....You are absolutely right.
I am trying to partner with someone who has experience with putting these deals together and I want to learn along the way. I could easily invest myself passively in other syndication deals but my priority is to learn so that I can become a syndicator myself (so to speak) one day. Now I am not trying to be a competition to anyone because I feel there is enough for everyone-law of abundance (lol), only If we all understand what the other person is bringing to the table.
What I can contribute is investors contacts, and help build a network where we will have access to high net worth individuals once we show success in our first deal. I also saw your workshop, but I feel Its too early for me to understand that kind of detail.
What is the best way you would suggest ? for me going forward.
Well if you want to partner with someone who has experience, and you want to stay locally, you'll need to find someone who is doing deals in your area. Talk with brokers, title, property managers, etc.- basically everyone in the industry, and find out who is syndicating deals. Sponsors are always looking for investors, so if you can bring them to a deal, you'll be able to find a seat at the table.
Hello @Ramandeep Singh
You are on the right track of finding a mentor and learning from the professionals.
I am working on getting my first apartment syndication in 2019 and the best book that breaks down the entire process is the "The Best Ever Apartment Syndication Book" by Joe Fairless and Theo Hicks. They also have an Apartment Syndication series where they go over all the steps too.
Cheers to 2019 and the year of the syndication begin!
Hello @Mike Taravella . Thanks for the suggestion, I bought "The Best Ever Apartment Syndication Book" by Joe Fairless and I am glad you mentioned about this book. I had heard Joe in BP Podcast and was thinking If I could get hold of this guy, that would be amazing. As they say "law of Attraction" works. Definitely I am looking forward to 2019 as the (or at least my) year of syndication. Also, at what stage would you recommend me to hire a coach/mentor as I am quite serious for someone to hold me accountable to my goals.
@Sam Grooms what is your recommendation, should one be familiar with MF world in order to learn How to become a syndicator ? I am networking locally but also would like to network with people even outside my area . Any advice would help. Thanks
@Ramandeep Singh I would say keep networking until you find someone you would like to work with as a mentor and see if you can provide value to their business. It won't cost you dollars, but sweat equity and they will value it and can help teach you.
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing