Newbie - Looking to Get Started in Multi-Family

15 Replies

Hey Houston Community, I’m looking to get started in multi-family real estate. My first objective is to start a property management company before owning my own properties. I’ve recently listened to a BP podcast which shed light on syndication, which I didn’t know about before. I realized that could be a great starting point for me to learn, and me mentored along the way. Anyone out there have any advice on books to read (although there’s no experience like hands on learning), the current state of the multi-family market, or any group of investors willing to give a newbie a shot? Starting with smaller properties of course. Thanks Regdric M.

@Regdric Malveaux Welcome to the party! 

Why do you think doing property management first would be better than owning and managing?

@Daniel Jarvis Thank you! 

I’m can’t say it’s better, due to my own lack of knowledge. However, my initial thought process based on lack of personal investment capital, was to: get started in management, gain knowledge and experience through management, build proper capital, then lastly begin to buy properties and run them through my own management company.

If this is a flawed thinking process, I’d love to hear it!

I'd advise you start property management by buying a multi-family and living in one unit, while managing the others.

Welcome to BP!

I'd suggest learning about the state's legal requirements in owning and operating a property management company. There's a fiduciary responsibility to your clients. Have you thought about possibly joining an existing property mgmt company that specializes in smaller MF properties?

@Regdric Malveaux I would have to agree with @Michael Dang . Property management is governed by state laws. If violated, it can open you up to damages that you might want to avoid. You can look towards joining an existing property management company. 

If you solely want to focus on multifamily, going to the multifamily forum section under the Commercial Real Estate section is a great start. You can follow that up by listening to podcasts: BP, Rod Khleif, amongst other ones. 

Originally posted by @Omar Khan :

@Regdric Malveaux I would have to agree with @Michael Dang . Property management is governed by state laws. If violated, it can open you up to damages that you might want to avoid. You can look towards joining an existing property management company. 

If you solely want to focus on multifamily, going to the multifamily forum section under the Commercial Real Estate section is a great start. You can follow that up by listening to podcasts: BP, Rod Khleif, amongst other ones. 

Thank you guys for the advice. I had been researching a bit more about owning a property management company. I definitely understand now how it can be tedious to get into, and a longer road ahead. Before my current engineering job I applied to property management jobs simultaneously to learn the industry. The more I research and delve into different methods of real estate investing, I'm definitely keeping my investing options instead of going focusing solely on multi-family or property management.

I recently found out about wholesaling through the BP podcast which seems like a good way to just "get started."

If you guys know of any real estate meet-ups in the Houston area,  please share.

Originally posted by @Hunter Hassebrock :

I'd advise you start property management by buying a multi-family and living in one unit, while managing the others.

Welcome to BP!

Thanks Hunter! Had I known about this technique even six months ago, I likely would've been able to convince my wife to go this route instead of moving into a house. Lol

Welcome Regdric! I invest in Chicago but I’m in Houston every week for work (consulting). Maybe we can get together one week and learn from each other?

I’m hoping to stay connected to the real estate world while traveling for my 9-5, I’m also open to investment opportunities in the TX market! Let me know your availability if interested.

Cheers!

@Regdric Malveaux

Feel free to reach out if you would like any help. We have similar stories (also an engineer), and I started with the same conclusion about property management that you had in your first post. The other contributors are right, there are legal implications with property management that you will have to navigate.

On the other hand, I personally believe there can be great long-term value for you and your partners by creating a great property management system.

@Regdric Malveaux , @Jacob Avery - I'm also in Engineering (Procurement/Subcontracts at one of the EPC houses in town), and just embarking on my maiden journey in Real Estate Investing.  Would love to bend you guys' ears on lessons learned, entry strategies, etc. 

@Mykia Long - would also be open to making myself available to meet as your schedule allows, if you're still in and out of town.  All the best!

@Regdric Malveaux Appreachaite the post im also looking to get started in the multi family realestate as well. I ve been fortunate enough to buy two SFR in houston in the last few months but ulitmatley id like to own several differnt multi family properties in the houston area. I live in los angeles but the market here is quite expensive. I hope to find better deals in Houston. I beleive if we contiue to reach out and learn from others here on BP we will reach goals

I'm in the same boat as @Darlington Agu with just a few sfrs. I'm currently reading a few books (Crushing It in Apartments and Commercial Real Estate, MultiFamily Millions, and the Millionaire Real Estate Investor), and listening to podcasts (BP of course, Rod Khlief, Grant Cardone, and Michael Blank) to absorb and push me in the right direction. I'd love to attend some meetups multi focused. @Michael Dang I will review those meetups 👍 Thank you. Good luck to everyone!

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