Hello I am new to real estate investing, I am on my second property which I live and the first one is currently rented out.
I am interested in buying more and grow my real estate portfolio, however at what point can you qualify for bigger deals such as a 10 unit + apartment complex. Also whats a good site to find deals?
I know the banks at that level they don't finance you, they finance and qualify the investment, How do you get qualified, do you need alot down ?
Please explain in great details if you some of you have made that cross over, can it be done at any time or do you need the play the "rich dad poor dad" monopoly 4 green houses then trade up for the red hotel?
Welcome to BP community! You're on the right path. What you need to do now is get educated on how multifamily investing works. Start with David Lindahl's "Multifamily millions" and Steve Berges "Buying and selling apartment buildings". Listen to podcasts on the topic and talk to other commercial RE investors. There's just too much to put in a post. And educating yourself will take you to the next level.
Welcome to BP community! You're on the right path. What you need to do now is get educated on how multifamily investing works. Start with David Lindahl's "Multifamily millions" and Steve Berges "Buying and selling apartment buildings". Listen to podcasts on the topic and talk to other commercial RE investors. There's just too much to put in a post. And educating yourself will take you to the next level.
Specialist · Huntingdon, PA · Member since 2018 · 162 posts · 147 votes
7y
Hi @Luxon Estiverne, I 100% agree with the advice mentioned already but just to answer your question about good platforms to find apartment deals, here is a list of options...
True you may not always find the best deals on these sites but they can be a means to connect with brokers and then try to see the other deals they have that they may not be posting. (For that you will need to convince them that you know your stuff.)
Specialist · Huntingdon, PA · Member since 2018 · 162 posts · 147 votes
7y
Hi @Luxon Estiverne, I 100% agree with the advice mentioned already but just to answer your question about good platforms to find apartment deals, here is a list of options...
True you may not always find the best deals on these sites but they can be a means to connect with brokers and then try to see the other deals they have that they may not be posting. (For that you will need to convince them that you know your stuff.)
Thank you all for the great reply and information, one more thing, I don't think anyone answer me about financing and lending. What are the requirements for an income of 100k with 65% DTI, is it possible to still get financing for a Million dollar deal ?
Rental Property Investor · Normal, IL · Member since 2016 · 170 posts · 85 votes
7y
I've never done a large deal but I'm guessing that's going to be very dependent on the bank itself and the deal. If the deal makes sense the deal makes sense. When I spoke with my lender I asked a similar question and his response was we wont finance a deal that puts all your eggs in one basket he said ethically to loan someone money on a deal that has strong potential to hurt both partners doesn't make sense.
Financing questions are very tailored to each persons situation, as well as the gross estimate rent, taxes and insurance for each property. The best way to find out is to get as few pre-approvals. My first pre-approval came in at around 350k for a 3 family, by my third pre-approval (the house hunting last longer than you think) eventually was able to get 550k for a 4 family grossing 4k per month showing 80k in yearly income, not that this means you can't get more or less. Everyone's finances are unique, and are case by case in the lending and underwriting process.
As for good easy platforms, I would suggest trulia for limiting it to multifamily right out of the search drop down, and switching to map view. I would then re-search my favorite properties in realtor.com's website for current tax information.
Honestly the best source of information is right from the horses mouth. Since all of the third party sites and apps get their data from the MLS (yes even zillow), your best source of information is from your realtors MLS account. Make sure to sit down with your agent and customize the bubbles of your search parameters, locations, unit count, and prices. Start broad and close in as you learn your market. Make sure to ask for daily email alerts!
Rental Property Investor · San Diego, CA · Member since 2018 · 44 posts · 36 votes
7y
@Luxon Estiverne
The best way is to partner with an experienced sponsor. This way you can leverage their experience, get lending approved, reputation to speak to lenders/brokers/property managers/etc and a ton more benefits.
Oh and by the way, brokers are the best way to obtain off-market deals. Try loopnet to find brokers in the market that youre looking in. Loopnet is also good to find small deals, if thats youre thing.