Got my loan now what
Hi! I own 3 income properties from 2016. Refinanced cash out and got a lot of money to invest. Looking to crate a team. Maybe a contractor. To do some fix and flips here in Denver or Pueblo. Always wanted to get into apt. buildings though. So if anyone can lead me the right direction for that. Just thought id post on here trying to figure out my next move. Much Love Crystal
You are definitely in the right mindset as far as going with MFH. I have the same plan but am not as far along as you are quite yet. First I would read Brandon Turners Multi Family Millionaire. My plan once I sell and scale is to call every 6+ unit building owner in my market with an offer semi-ready. The first step is to become very familiar with the income the property will produce at market rents as apartments are typically a little less than SFH. Factor in your own operating expenses as well. Figure out what the potential cap rate is compared to what the current cap rate is when speaking with the owner. Also you will need to know what the apartment buildings are going for as far as cap rates in your market. Then you can make a fair offer that will hopefully get accepted. But like I said, I havent done this and this is my plan lol. I learn more every day and as soon as I am actually taking action on it I will probably realize I know absolutely nothing.
Hi @Crystal Wilson, congratulations!
There are a lot of different options that you have.
You can do some fix and flips to build up capital in order to get into multifamily.
Depending on how much cash you have right now, you could jump into apartments now.
Denver is a higher-priced market so you might need to build up some capital first.
Hope this helps! Let me know if I can be of any assistance.
@Taylor Dasch Thank you! That sounds like a great plan. It helps me alot just seeing what other people would do and hearing it from a fresh brain even if you are not there yet usaily people like you have the best advice. My first few deals were my best. But yeah ill try and get a hold of these people who own 6+ units.
@Andrew Garcia Thank ya! I might have enough right now. Just trying to see how I find these places I guess just start looking. And analyzing. I might have to look far away since Denver is so crazy right now. But I do want to to some flips. I'm scared of getting screwed over. I have to find a good team.
Definitely have all your ducks in a row! Congratulations on this next step. Multi Family Millionaire is a great book. 10/10 recommend reading if this is your interest.
Having the right team is a must. I would connect with some local investors and see who they recommend.
On the multifamily side, you can connect with some commercial real estate brokers to get started.
Hope this helps!
Hello Crystal,
Multifamily is a team game so you should create a team of people who have specific expertise and can add value to the team.
Also you should have a good knowledge of Multifamily.
Good luck!
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@Taylor Dasch if you're going to do fix and flips, be sure to have plenty of meat on the bones and really know your construction costs. You should also planning for a softening market when you calculate your ARV. We're heading in to a tricky time for fix and flips.
@Crystal Wilson- thanks - if you cash in hand is ample to do 100% of what you want to do - great ....however if you think you might need financing for any new acquistions - you should get a full loan pre approval in place for whatever hypotehtical scenario you see as being your next realistic step ...you can then be sure you have financing in place and you can also become aware of these numbers ...