How did you make your first multifamily deal happen? I linked up w/ an experienced syndicator, along w/ a few others and made it happen by coming from contribution and offering to be as helpful as possible to get the deal done... anything for the team. Most newbies make the terrible mistake of approaching seasoned players and ask them to "mentor" them for free- taking from the relationship, when in fact it needs to be the other way around with conviction.
What were some key points you would share with others? Get crystal clear on how you can add value to the lives of others (and it doesn't always have to be money). I met an influencer at a seminar and discovered what his current challenges were. Ready for this? He told me that he didn't know how to use Bigger Pockets... lol. I told him that this forum is the place to be and I could help him w/ that. So I went home and made a video tutorial that explained how to use this site and he was blown away by that and said that he was so impressed because all he ever gets is people asking him for stuff. Now I have a great relationship established with a guy that can probably help me fund just about any deal I come across.
Steps you would tell them to take and ones also to avoid..... Learn enough to get going, then get going. I would recommend trying to dump gasoline on someone else's more experienced/ well established fire, rather than trying to push a boulder up a hill. Establishing a track record and credibility will be one of your biggest challenges as well as staying motivated. Perhaps the biggest pitfall I would say to avoid is the "Shiny Object Syndrome".
There's so much to cover and I'm sure others will jump in and cover what I may have missed... Hope that gets you kickstarted anyway!
That was a great read chris, learned a few key points to add to my notes. Any and every detail pertaining to the multifamily process is critical for me to absorb.
- How did you make your first multifamily deal happen?
It was about 20 years ago ... I bought my first property (a duplex) with one of best partner (my mother) and lived in one of the units. Nowadays, it is called house-hack.
- What were some key points you would share with others?
We did not check the tenants well enough and had some problems with them. We eventually learned our lesson, but end up using “cash for key” where you pay your tenants to move out of the apartments.
- Steps you would tell them to take and ones also to avoid.....
There are so many different companies now that allows you to do tenant check, and that does not even cost the landlord anything - take advantage of it.
Thanks for the information Oleg. I like the whole duplex starting out idea, I have been contemplating that myself. You made some valid points that will help me in the future.