Multifamily mindset worth the cost?

Question

I’m currently attending a 3-day Multifamily Mindset seminar and have just completed Day 2. I entered with zero real estate experience, eager to learn more about multifamily investing and see if it would be a good fit for me.

During the event, another attendee approached me and shared that a former student of Tyler’s took 3 years to close his first deal — a property valued at $18.5 million — but only received around $6,000 from it. I can’t verify whether this claim is accurate, but it raised some concerns for me.

Today, there was a strong emphasis on enrolling in a $40,000, one-year mentorship program. It appeared that much of the advanced strategy and networking was primarily accessible to those who joined the paid program.

This has left me feeling discouraged and questioning whether such a large financial commitment is the only viable path to get started. I understand that real estate investing takes time, effort, and patience, but many of us in the room joined because we’re tired of financial struggle and want to create a better future. From what I’ve observed, it seems that people who already have substantial capital are able to leverage these opportunities more easily, while others face significant barriers to entry.

Cody L. · Answer

I have no idea what "Multifamily Mindset" is but I can tell you I've never attended a class or anything.  It's really not as complex as people make it out to be.  I started out by finding an 8 unit in an area I liked.  The numbers made sense.  I had enough saved for the down payment so I bought it.Now I have 2,000 units (granted the first 8 unit was 17 years ago).   I'd have more if I was willing to take on partners/investors but that always seemed like a nightmare.

Eric Fernwood · Answer

Hello @Umi Shafi,

There is a lot of confusing statements floating around. I had the same problem when I first set up my business. I read all the popular investment books and went to multiple investment seminars. To my surprise, all I discovered was a sea of self-professed “experts” touting their opinions as facts. They peddled clichés like “secrets the wealthy don’t want you to know.”

Frustrated, I turned to the commercial real estate world. National retailers base all their decisions on what their ideal customers want, not what retail management thinks. I adopted this retail strategy by first determining my ideal "customer."

My ideal “customer” stays for many years, pays rent on time, and takes good care of the property. Once I identified my customer, I determined what and where they were renting and bought similar properties. Every decision focused on attracting my ideal customer to meet my financial goals, not on my personal preferences or others' opinions. This could mean investing in any property type: high-rise, condo, multi-family, or single-family—it does not matter as long as it attracts your ideal customer.

The Multi-Family Fantasy

The multi-family "advantage" most commonly touted is that even with one vacant unit, you still have income from the others. However, this single vacancy often leaves insufficient cash flow to cover all expenses. In multi-family properties, the likelihood of having one or more vacant units is high. As a result, multi-family properties typically generate lower overall income than single-family properties occupied by reliable tenants. In my case, over 17+ years, with a property population of >560 properties, our vacancy rate has been <2%.

Multi-family properties also come with higher maintenance costs. In a 4-plex, you're responsible for four HVAC systems, four sets of plumbing, four sets of appliances, and so on. Every dollar lost to expenses is one less dollar in your pocket.

Another important consideration is that investors rarely sell performing assets. In my 17 years of completing hundreds of deals in Las Vegas, I have never seen an investor sell a property that was making money. Investors only sell properties when they are losing money. So, when you see a multi-family property for sale, it's almost certainly losing money.

Also, beware of paper returns. My first investment property was a C-class 4-plex in Houston that promised exceptional cash flow on paper. The reality was dramatically different. After accounting for vacancies, maintenance, evictions, tenant skips, and other unexpected costs, I was actually losing about $1,000 per month. Why did the previous owner sell? Because the property was losing money. In this case, the cause was both deferred maintenance and problematic tenants.

Summary

Real estate investing comes down to purchasing properties that align with your financial goals. These goals should drive all your investment decisions. Don't allow dogma or “conventional wisdom” push you toward investments that don't serve your financial objectives.

James Armstrong · Answer

There is another thread on here about this. It would be worth your time to read. I found most of it to be true. I attended a 3 day event that didn't teach what was promised in the free webinar. I paid 1500 for the 3 day course to only be told the same thing as in the free course. Nothing new. They then wanted you to.pay 7500 to 40000 for courses, which talking to other students ts realized it only depended on how much they think they could milk you for is what they charged you. I would stay clear of this. I would find someone local that is willing to help guide you, or find a.less expensive more genuine company willing to lock direct arms with you.

Drago Stanimirovic · Answer

Programs like Multifamily Mindset can offer structure and motivation, but $40k is a steep entry point, especially when free or low-cost resources (like BiggerPockets, local meetups, and direct networking with active investors) can provide massive value early on.

Real estate, especially multifamily, is a long game. The story you heard, even if accurate, reflects how returns in syndications or JV deals often don't align with the headline numbers unless you're leading the deal or heavily invested.

You don't need to spend $40k to succeed. What you do need is education, persistence, and smart networking , all of which can be built step by step without high-ticket mentorships.

Feel free to reach out for help anytime! Happy to support you on your REI journey!

Multifamily mindset worth the cost?

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