Hi BP Nation!
During the past several months, I have become highly interested in REI and have gained a wealth of knowledge by browsing this site, reading through forums, listening to podcasts, etc., and figured it is finally time that I jump in. I have developed a focus/interest around purchasing small multifamily units as buy and hold investments in the Charlotte MSA and general surrounding areas within North Carolina (given that is where I currently reside).
I am at the point where I would like to soon begin actively pursuing my first deal. I am very motivated and excited about the prospect of building wealth through REI; however, my lack of experience (being none) has definitely led to moments of hesitation as I would like to avoid any major mistakes on my first transaction.
JT (Jonathan Tambellini)
Welcome to BP! You're already ahead of so many other people being on this site. I'm currently going after the same strategy as you. Unfortunately, I can't give you specific advice for that market because I haven't analyzed there. But hopefully the next two brief tips, coming from someone who started in MFH not too long ago myself, help!
1) Keep up your education and don't quit! Starting out you'll notice a mix of different tempos depending on your market - sometimes things will move very quickly and not work out. Sometimes it'll move at a snail's pace and you'll feel like you're falling behind. Don't worry. Keep at it. Numbers are numbers, deals are deals. They're out there and you'll get 'em!
2) Start networking. It's incredibly important. Search the forums for people in your area. Search the events tab for meet-ups and ATTEND. Embrace your vulnerabilities and step outside your comfort zone. The more competitive your market is, the more you'll benefit from personal relationships.
Good luck & keep us informed!
Congrats on digging into REI and welcome to BP. Networking with brokers, lenders, etc is key. Education never stops as everything will be a learning process. I've been interested in the Charlotte area for MF. I've traveled to there and the metrics seem decent. We have a couple of MF acquisitions in California but strategy is slightly different as you can imagine with the prices of everything here.
I agree with Paul that having a network is the best place to start. You should be able to find some groups in your local area that you should begin to attend. Also, if you haven't already check out the calculators on the site. Do your research in the area you want to pursue and if the numbers work, just jump! If you've been listening to the Pod for a while I'm sure you've heard everyone say the first deal was usually the hardest but taught the most. This was true for mine except that I had the unique experience of having two first deals... meaning we raised enough money to fund two deals in the same city and jumped at it. It was quite the learning experience but thank the Lord they will both still cash flow. You are going to make a mistake or overlook something but if you don't start you'll never succeed.
Good luck and welcome again!
Hi @Jonathan Tambellini ! I love the strategy of small multifamily properties. 1 roof, 1 foundation, multiple tenants :)
In the Charlotte market, this strategy is VERY challenging, just because the inventory is much more limited than single family/townhouse/condos. I've also found that most of the multifamily properties are in need of a lot of repairs and/or modernizing to maximize rents. I'm not sure if that's something you would be willing/able to take on?
A good real estate agent should be able to steer you away from major issues as long as you are open with them about your situation and goals. Have you reached out to any in the area yet?
Thanks for the post @Laura Yates
Based on my initial research and scouting of the Charlotte market, that has been my impression as well. I'm curious what methods most investors in the area use to successfully source their deals.
The rehab process is probably where I could use the most guidance given I have no background in the industry. However, it's a challenge I am willing to take on under the right circumstances - need to gain the experience eventually! Definitely interested in connecting with local contractors or partnering with others who have greater knowledge regarding that type of work.
Hoping to reach out to agents soon. I'll DM you.
Welcome JT. I have some experience in real estate and like you I am finding Charlotte might be a tough nut to crack. Stay vigilant.
Hi @Matt Henry . What exactly has been your strategy so far? I saw that you have quite a few single family rentals. How is that portfolio doing?
Laura, thanks for reaching out. We currently do not have any single family rentals. Where did you see that we did?
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