Diversifying into Multifamily

[Bijith Rao]

I’ve been in Single family rentals for a while but looking to diversify into Multifamily to replace my Corp income with steady cash flow. Mentor ship programs and classes out there seem mostly gimmicky, besides I’d like to think I’m sophisticated enough to skip the basics (don’t want to spend thousands on redundant info).

Any thoughts on the best approach? Partner with an experience MF investor? What can I bring to the table to be attractive enough to qualify as a co-sponsor for example?

[Will Fraser]

Hi @Bijith Rao, you're right . . . . these paid guru programs are mostly gimmicks and shady junk that you get for pennies or free EVERY DAY on BP and Youtube.

Are you currently investing in Real Estate?  If not, buy a house this year.  Then buy 2 next year, 4 the next, 8 the next, and 16 the next.  You can substitute "units" for "houses" and scale beautifully into multi-family and let experience lead your way.

If you are currently investing in RE, study up on the MF asset class (Ken McIlroy's youtube channel and any book he's written is golden for this) and try to put yourself into a position of direct ownership.  This is the safest you can be in overall.  Otherwise, you'll want to bring a high net worth to the equation to be an un-skilled co-sponsor.  That's the magic ticket!