Allentown, PA · Member since 2017 · 3 posts · 0 votes
Hello, My name is Brian and I am very interested in getting into the real estate investing game. I recently sold my business so I want to start investing the money. I have never done this before nor do I know anything about this. I am interested in buildings with 4-10 units and ideally a down payment of about 50-150k. I want to learn the logistics and mathematics behind purchasing multi family homes just so I make sure I am profitable.
I am also looking to know the business as I want to purchase more buildings in the future. So any books, any gurus or any knowledge I can find online would be greatly appreciated. Thank you in advance.
Hi Brian, my favorite book on multifamily is by Steve Berges. He explains the value-add strategy thoroughly but clearly.
If you are interested in a truly passive income stream, consider investing in an apartment syndication. I am working on my first one, and my investors (who are all accredited or sophisticated) will receive at least a 6% preferred return and 2/3 of the profits over 6%. My goal as the sponsor is to generate for the passive investors a 10% cash-on-cash return and a 20% internal rate of return.
4-10 unit buildings that are turn key can be difficult to find. What markets have you been looking in? Are you interested in investing out of state or only locally?
Well I would only do SFH if they are distressed... Never retail.
Otherwise, Multi Units is 10x better.
Keep in mind, 1-4 units is considered Residential and 5 units and up are considered commercial.
I would never pay retail or discount pricing on any property period unless it was a property that you can refurbish and increase revenue.
This is where patience is a virtue.
Take your time and don't pigeon yourself in a mindset overlooking duplexes or triplexes... If the price is right, take them down.
Is you goal to just tie up your money or earn a passive income?
I'm sure you get the point.
Just because you have money, never be afraid or oblivious in not being creative. Depending on your market, never be afraid to negotiate... "If you're not embarrassed by your offer, then you are paying too much."
Good luck!
BIG HENRY
Well I would only do SFH if they are distressed... Never retail.
Otherwise, Multi Units is 10x better.
Keep in mind, 1-4 units is considered Residential and 5 units and up are considered commercial.
I would never pay retail or discount pricing on any property period unless it was a property that you can refurbish and increase revenue.
This is where patience is a virtue.
Take your time and don't pigeon yourself in a mindset overlooking duplexes or triplexes... If the price is right, take them down.
Is you goal to just tie up your money or earn a passive income?
I'm sure you get the point.
Just because you have money, never be afraid or oblivious in not being creative. Depending on your market, never be afraid to negotiate... "If you're not embarrassed by your offer, then you are paying too much."
Good luck!
BIG HENRY
4-10 unit buildings that are turn key can be difficult to find. What markets have you been looking in? Are you interested in investing out of state or only locally?
At the moment I am only looking in the Lehigh Valley Area just so I can manage the property as well.
Well I would only do SFH if they are distressed... Never retail.
Otherwise, Multi Units is 10x better.
Keep in mind, 1-4 units is considered Residential and 5 units and up are considered commercial.
I would never pay retail or discount pricing on any property period unless it was a property that you can refurbish and increase revenue.
This is where patience is a virtue.
Take your time and don't pigeon yourself in a mindset overlooking duplexes or triplexes... If the price is right, take them down.
Is you goal to just tie up your money or earn a passive income?
I'm sure you get the point.
Just because you have money, never be afraid or oblivious in not being creative. Depending on your market, never be afraid to negotiate... "If you're not embarrassed by your offer, then you are paying too much."
Good luck!
BIG HENRY
Thanks Big Henry. I am looking to earn passive income and start focusing on real estate investment as a major source of my income. My goal is 5 and up, but if the numbers make sense, I will take anything less. I was also not interested in SFH because as mentioned before, I want to get into this as a business. Thank you once again.
Hi Brian, my favorite book on multifamily is by Steve Berges. He explains the value-add strategy thoroughly but clearly.
If you are interested in a truly passive income stream, consider investing in an apartment syndication. I am working on my first one, and my investors (who are all accredited or sophisticated) will receive at least a 6% preferred return and 2/3 of the profits over 6%. My goal as the sponsor is to generate for the passive investors a 10% cash-on-cash return and a 20% internal rate of return.