First multifamily purchase advise

First multifamily purchase advise

Rental Property Investor · Houston, TX · Member since 2019 · 16 posts · 0 votes

Hey guys, hope everyone’s doing well this morning. I’d like to get some thoughts and advise from folks that made it from zero in the multifamily world. I’m 28 years old, I’ve been in real estate for the past 6 years; own a brokerage firm in Houston and have been in development (spec homes development ) as well. My partner and I are at a point in our career where we’d like to consolidate and choose the best route for our future where we can start building lifelong wealth and cash flow through multifamily investing and syndicating. Even though we do own a ton of real estate, none are rentals at the moment.

Can you guys give me personalized advise on what the best strategy to start is? We’ve been to Rod Khleif’s 3 day boot camp, listen to a ton of podcasts for quite some time now and network with others in the industry. We also have lots of funds awaiting from investors and people we know. We just need to start finding properties that are not overvalued and where we can add value to and reposition/rebrand etc!

As you all probably know, it’s not easy to find. Would you recommend looking at different markets as well? Do you think having a criteria of no less that 40 doors is a wise decision? We really want to go big.

Any advise you can give me would be very beneficial. I’d like to hear anything and everything you have to say.

Look forward to meeting some of you!

Jeff

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  • Nathan GesnerBusiness Member
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    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    7y

    As a REALTOR, you have an advantage over most buyers. Start spreading the word to every agent you come across. Give them something in writing that shows what you're looking for and that you have buyers ready to pounce when the deal presents itself. This is a good way to find deals before they hit the open market.

    You should also find a local investor group. I'm sure there are plenty in Houston. That's a great way to learn and network.

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  • Investor · Morrisville, NC · Member since 2012 · 1k+ posts · 673 votes
    7y

    @Account Closed . My only advice at this time (and based on what you posted) would be to learn how to analyze a multi family asset. Reach out to owner/brokers/sellers, get the P/L and Rent Rolls, then jump onto a deal analyzer tool... and start crunching the numbers ... Make sure to know exactly what you are looking for. Cashflow? Value Add? CoC? IRR? ... etc.

  • Developer · Charlottesville, VA · Member since 2018 · 4k+ posts · 4k+ votes
    7y

    Hi Jeffrey,

    Having a development background gives you a huge advantage in this business.  You definitely want to go big and don't shy away from heavy value add and ground up deals. If you have the resources and investors ready to go then go for the big ones. Keep educating yourself on apartments, look at as many deals as you can so you know the numbers intimately and find a mentor. That's the best way to fast track and scale. You need to work with someone who can help you get your first deal done. Once you get that first deal you're off to the races.

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