Multi-Family Syndicator · Abington, MA · Member since 2017 · 603 posts · 347 votes
7y
We all have to start somewhere. Here are some tips.
1. Educate yourself! This is going to be what you do for the rest of your life as you constantly tweak and insert what you learned into action.
2. Analyze as many deals as possible. Keep reviewing and learning how to spot a good deal from a bad deal.
3. Connect with like minded people.
4. Talk about real estate! Be vocal and intentional with your conversations. You never know who is interested and needs help. Since you have educated yourself and analyzed deals, great chance to partner with a money partner on that front.
5. Raise money for your own deals.
6. Find deals for others. Also known as bird dogging.
7. Invest in someone else's deal or syndication. Learn from the process and get involved someway, somehow. This allows you to earn while you learn by investing passively in their deal.
8. Find a mentor and volunteer to help them for free. Add value to someone else for free education and building a friendship/relationship.
9. Write a blog, start a podcast, start a YouTube channel, or do all 3.
10. Be active on your social media platforms and create your own brand.
These are not step by step processes. Just guidelines to help you get to your end goal. 1, 2, and 3 are crucial but everything else tackle it in your own way and process. Just do it. Hope this helps, good luck, and God bless!
Developer · Charlottesville, VA · Member since 2018 · 4k+ posts · 4k+ votes
7y
Yes that’s a great way to start as long as you have educated yourself. You could also find a mentor, partner with an experienced investor or invest in someone else’s deal.
Investor · St Louis, MO · Member since 2017 · 250 posts · 181 votes
7y
@Ronald Gladden there is no right or wrong way to do it. Most successful investors that I know have started small, and worked there way up. Multifamily can be a lot more complicated. At the same time... If you have a mentor and if you have educated yourself enough then go for it. Whichever direction you choose to pursue, start networking and building relationships as soon as possible.
Cincinnati, OH · Member since 2013 · 1k+ posts · 1k+ votes
7y
@Ronald Gladden multifamily is one of the best ways for newbies to start, if they are partnering with someone experienced. You can do this as a JV partnership or as a passive investor in a syndication.
It really comes down to your goals. If you are imagining a life where you spend your free time with your kids and traveling the world, then passive investments make the most sense. However, if you want to learn everything and manage your own deals then you want to find opportunities where you can be more active, but this will be like signing up for another job, not really a passive investment.
Either way, there is going to be work up front to vet partners and learn how to evaluate deals.
Welcome to BP community! As @John Casmon mentioned, it is important to have your goals set. Once you do that, pick a niche within RE investing that you want to concentrate on and educate yourself as much as possible!
If you do stick with multifamily, I recommend starting with David Lindahl's books on 1) emerging markets and 2) multifamily millions.
New to Real Estate · Hollywood, FL · Member since 2008 · 35 posts · 16 votes
7y
Good morning! I appreciate you sharing your thoughts. Thank you. As I have found thus far there is no one size fits all model and your feedback exhibits that as well. I'll be continuing to educate myself and plan to scale as I learn and practice.
@John Casmon My wife is from Chicago and my son is planning to attend Columbia this fall. I was browsing some properties recently in your area listed on crexi.com. With my early knowledge Chicago seems like a great area for Class C-D apartments with some potential upside. Really considering that area for a start for properties <$500K since it seems like its a solid pool in that price range at first look.
New to Real Estate · Hollywood, FL · Member since 2008 · 35 posts · 16 votes
7y
@Oleg Shalumov Thanks Oleg. Exciting to join the BP community. First community I have joined that has such an intense culture of sharing and support. Already seeing the value.
Cincinnati, OH · Member since 2013 · 1k+ posts · 1k+ votes
7y
@Ronald Gladden Chicago has a lot of opportunities for C and D assets, but make sure you understand what comes with them. The city is tenant-friendly and there are many professional renters who take advantage of the system. These properties are management intensive and require a strong PM to be successful.
There are solid areas where you get the right balance of affordability, strong cash flow and good tenants, so do your homework on the areas to invest in Chicago to optimize returns and minimize headaches.
Looking for thoughts on whether newbies should should be seeking to enter REI starting with multi-family/apartments?
There are many real estate strategies and they don't fit everyone.
Sure - multifamily can be for newbies - but start small - 2-units and learn as much as you can.
Also, not everyone are cut out to be a landlord. Some like the "thrill of chasing the deal" and become really good wholesalers and good real estate agents. Others like improving properties and have an "eye for beauty and design" and they become really good developers and rehabbers.
To be a good landlord - specially of multi-family, you have to be detail-oriented, you have to know how to read people, you have to be assertive & firm (otherwise, your tenants will walk all over you) and you have to be very patient (because the real money in real estate, specially with multifamily is made over the long term).
Rental Property Investor · Frisco, TX · Member since 2016 · 22 posts · 12 votes
7y
I would recommend to start as a passive investor on a deal and ask them if you can "shadow" them and learn about the business. Like everyone said, education is key. Invest in yourself first with the education and training and you will go far in the industry
Denver, CO · Member since 2017 · 43 posts · 38 votes
7y
@Ronald Gladden As you mentioned, there is not a one size fits all approach, be as creative as you want to be! However, before you invest, please make sure you are clear on the following (in order):
Why: What are the external and internal factors leading you down this path?
What: Identify the MSA, city and neighborhood you want to invest in that is supported by strong criteria/metrics. The criteria you come up with will keep your emotions in control. Criteria should include: conservative underwriting, demographic metrics, population growth, income trends, employment, property management, etc.
How: Before pulling the trigger, make sure you have the right players on your team to help shoulder the load and look out for "blind spots".
There are many Apartment Investing / Syndication resources out there. However, the most comprehensive is the 'Best Ever Apartment Syndication Book' by Joe Fairless. Feel free to reach out, I don't mind sharing everything I have come across on my education journey.
Multi-Family Syndicator · Abington, MA · Member since 2017 · 603 posts · 347 votes
7y
We all have to start somewhere. Here are some tips.
1. Educate yourself! This is going to be what you do for the rest of your life as you constantly tweak and insert what you learned into action.
2. Analyze as many deals as possible. Keep reviewing and learning how to spot a good deal from a bad deal.
3. Connect with like minded people.
4. Talk about real estate! Be vocal and intentional with your conversations. You never know who is interested and needs help. Since you have educated yourself and analyzed deals, great chance to partner with a money partner on that front.
5. Raise money for your own deals.
6. Find deals for others. Also known as bird dogging.
7. Invest in someone else's deal or syndication. Learn from the process and get involved someway, somehow. This allows you to earn while you learn by investing passively in their deal.
8. Find a mentor and volunteer to help them for free. Add value to someone else for free education and building a friendship/relationship.
9. Write a blog, start a podcast, start a YouTube channel, or do all 3.
10. Be active on your social media platforms and create your own brand.
These are not step by step processes. Just guidelines to help you get to your end goal. 1, 2, and 3 are crucial but everything else tackle it in your own way and process. Just do it. Hope this helps, good luck, and God bless!
New to Real Estate · Hollywood, FL · Member since 2008 · 35 posts · 16 votes
7y
@John Casmon Definitely John, thanks for the insight.
@Michael Ealy Great delivery Michael, just to piggy back and share some background; I'm currently driven to target multi-family is due to my corporate experiences. Having held Senior Leadership roles in rigorous environments that are intense I'm accustomed to adjusting quickly, planning & execution in large scales relating to facility health, contractors, employees and volume. I was a thrill chaser and wanted a fast buck but learned "slow is smooth and smooth is fast" and sustaining a progressive upward trend was more valuable and repeatable. I love and have enjoyed operations and now I'm at a level where I believe my skills would be most transferrable for long gains in real estate.
@Rebecca Stuelpnagel Thanks Rebecca, I'm considering that route as well. I have some scheduled networking events where I'll be seeking those partnerships.
@Larry Caper Awesome, thanks Larry for the insight, recommendation and opportunity to sync.
Rental Property Investor · Denver, CO · Member since 2018 · 183 posts · 172 votes
7y
@Ronald Gladden you can do it for sure! As other's have stated, surround yourself with the right people, educate yourself, and most importantly trust the process and don't rush into a deal.
My mentor said "Sometimes NO deal, is a good deal."
Take your time, learn, build your team, know your market, walk properties, network, talk to potential investors, read books, attend conferences, go to meet ups, start a podcast, underwrite deals, etc.
If you did all these things I don't see how you could not be a successful REI.
Investor · Charlotte, NC · Member since 2017 · 791 posts · 479 votes
7y
@Ronald Gladden start where you feel comfortable. Each strategy in real estate investing is different. Figure out what part of real estate is attractive to you, educate yourself, and take action. Progress over perfection. You may get into it and not like that particular model of rei and make a shift. There is not prerequisites for multifamily investing if that is what your asking.