New Member from West Haven, CT

[Lynelle Fidalgo]

Hello all,

New to the BP site and I just want to say there is so much good information here. More details than any of the books I've read in the past. I have been interested in Real Estate Investing for a while. Been reading and learning and I am ready to really use what I know to start making profits.

My focus is to own multifamily apartments Class B 20- 50 units right now. I know most people may start off with residential real estate when investing but early on I was introduced to the commercial side of real estate everything from mortgages to analyzing profits within the building, cap rates, NOI, etc.

Because I don't have enough to put down on an apartment yet, my plan is to find off-market apartments 20-50 units for sale using direct mail to get to the owners. When I find a good deal wholesale to another investor who has the cash to put down. After a deal is done and I start to build capital for my down payment I would then buy an apartment for myself and after increasing profits within the building I would use the cash flow to buy more.

Please tell me is this a realistic plan or should I go another way with this?

Thanks

[Dev Horn]

Hi Lynelle Fidalgo - sounds like a reasonable plan. The tricky thing in these "getting started without much capital" plans is putting property under contract, finding another buyer, and then figuring out how to close the two deals (assignment, double close, whatever). With your knowledge of mortgages, you may already have it figured out. There is just risk involved in that space between buying the property and selling it to another investor, when you don't have the capital to outright purchase the property.