Starting CRE MULTIFAMILY Journey! How did you get started?
After my side lining injury. I was wrapping my head around what it is to analyze financially a multi family 5 or more units and the process beginning to end. First Book CRE FOR DUMMIES by Peter Harris
So walking into the first book I had an idea of the big picture but was reluctant to go the syndication route which is to pool together investors to raise capital to attain an asset.
The book “Financial Freedom With Real Estate Investing by Michael Blank. opened my mind to get funding and partner up with like minded investors.
I’ve been researching market trends examples job growth, new construction, vacancy rates, entry cap rates, median rents and median price per unit. 2018,2019,2020 in all categories.
Also focusing on market cycles and closely analyzing the states that fall in a Recovery Phase & Expansion phase 1 &2. There are prospects in expansion phase 3 but focusing on new construction and job growth in those sub markets closely avoiding shifting into Hypersupply.
The goal now is to set up a team that consist of Project Manager, CRE Broker, CRE Attorney, Contracter, Mortgage Broker, Escrow Company. In potential sub markets
List currently at 12 closer studies to narrow top 3
Only interested in properties with a 6-8% Cap Rate with value add opportunity to increase NOI.
Rents need to be below market with room for increases. Value add renovating units, curb appeal, washer dryers etc.
Also focus on lowering expenses and utilities and no major capx renovations.
Execute analyzation Of owner financials T12,T2T3, Rent rolls, taxes, expenses, vendors
Perform due diligence and title investigation.
I’m putting together a booklet presentation with market analyst and Investment Property Example to show potential investors
So much to write but I’m learning.
Back to the books, blogs, podcasts, YouTube videos absorbing it all like sponge.
Best of luck to all ✌🏽 in 2020 & years to come!
Most Popular Reply
Get joe fairless book, best every apartment syndication. Then get michael blank SDA and then see if you want to get your real estate license. Then I would start to listen to a lot of youtube, and podcasts.