Want to dip my toe (or whole foot) into MF. Tips?

Question

Hello all. CA-based investor who has a few SFH in my portfolio. I'm looking to start investing in MF units. I know it's a broad question, but this group is so helpful! Looking for good tips or resources to learn more about decent markets to invest in.

1. Cash flow of course is great, but not the end-all be-all. I'm not necessarily chasing the highest CAP rate. Trying to find a nice balance between CF and appreciation.

2. I have about $100k to work with, but willing to try out any creative financing options.

3. Willing (and almost have to) invest out of state.

Thanks in advance!

E. C. "Stony" Stonebraker · Answer

@Neil Anthony, if you want to learn the MF space, I think investing as an LP in 2-3 syndication deals is an excellent start, especially if you are investing out of state and, assuming you have a full-time job.That is how I started.

You can learn how sponsors evaluate and offer deals, listen to other investors ask questions of the sponsors, and, IMO, you can attend in-person events where you can meet other investors and sponsors and ask all the questions you want as well as hear investment stories of all kinds.

Once you get through some time immersing yourself in the MF investment world, you will have a better idea of whether you want to be an active or passive investor.

Of course, there are plenty of books to read and speed up the learning process. You've probably read many yourself.  Some I like include The Hands-Off Investor by Brian Burke, The ABCs of Real Estate Investing by Ken McElroy, The Millionaire Real Estate Investor by Gary Keller, Tax-Free Wealth by Tom Wheelwright, What Every Real Estate Investor Needs to Know About Cash Flow by Frank Gallinelli, Emerging Real Estate Markets by Dave Lindahl, Financial Freedom with Real Estate Investing by Michael Blank, The Perfect Investment by Paul Moore, and many others.

If you want to talk more about your path, feel free to contact me.

Paul Moore · Answer

Hi @Neil Anthony. You got great advice from EC above. You may also want to consider joining a coaching program. Many people have had success working with a great coach, and one of the benefits can be that you can partner with them on deals in some cases.

You may also want to consider joining a coaching program. Many people have had success working with a great coach, and one of the benefits can be that you can partner with them on deals in some cases.

My coach cost about $25,000 and this paid for itself hundreds of times over.  What are you invest in a syndication or fund, which would be my first choice, or go to this alone, I recommend you partner with others since this is a huge effort to undertake on your own. Happy investing!