The Advantages of Multi-Family Investing

Single-family is not scalable and if someone is not renting your single-family, it’s one or zero. If someone’s not renting, your income will be zero. You have to manage each property with different location, I cannot bring a property management company, because it’s a different location. I can’t bring because I can buy a home, there's no guarantee I can buy a second one next to this, there's no levels out of expenses there, based on those reason, I went to multifamily.

We started this company back in 2017, so, we all know before we get into business because we are likeminded, we’re all from the same culture, it’s work as a team. That's number one, you need to have a good team in place. Number two years working with my partners, they do have experience earlier in doing a multi-family deal. They are small, small deals by themselves and they have the experience how to manage that. I have a team we can supplement my skills. We have looking to a café, so it could be day-to-day operation of my apartment is number two. Number three is we define the goals, we define the smart goals, which is a very key thing of anybody to have a sector, they need to have key smart goals. They should be able to define, once we have a smart goal, we need to define the criteria, where we want to buy. I've been investing across the country, but I live in Dallas, I still feel Dallas is one of the most happening place in the country. When I moved in 2011, the population around six million people, now seven years down the line or eight years down the line, we are almost seven million people. The way things are going by 2030 will be 10 million, 11 million, with us, it's much happening place.

Listen to full episode: https://lifebridgecapital.com/2019/10/ws356-the-advantages-of-multi-family-investing-with-sanjeev-silla/

We define the criteria, we have to look at B or C class properties, maybe at least 60 to 150 units. We have specific details that are meant with smart goals, we put this timeline, maybe in the one year, we want to make sure that we have at least two deals under the contract. I know, the first deal took almost seven months to get a first deal, but I will tell you and all here, when we moved to this country, it took me seven years to buy a home, because we’re not sure where to buy the home and which location. It's confusing, because I didn’t have an education at the time. But I’m happy to say that after seven months we formed a team, we were able to get a contact in a deal in seven months. Because of the education, you need to have mentor. Once we earned the contract, we're able to close a deal in 60 days from that. And the second deal, we’re able to close nine weeks from the first deal. The reason is we got these most placed at Dallas and with the minimum from $70,000, yhese two deals within a mile apart. So, we can level expenses, not only in our income.

In 2014, with some of my friends we formed a team, we wanted to buy an apartment. In 2014, we went to in Fort Worth, which is 30 miles from here really. You need to have a team where they can leverage the experience in the financials to buy a bigger deal, it’s all because of education and mentor. The mentor, giving it a lot of confidence. Look at the market down, just look at the job market, various factors, we talk about population grow, job growth, income level, median income, it's just so many factors that would feel you confident you can go in the right direction.

I just want to highlight, we do have a full-time jobs, I have my IT consultancy and my friends; they own different companies, at the same time, we do have deals. We need to make that’s top priority, making sure that they’re working on deals, we’re making sure that we are running our operation, number one priority, that’s the number one goal. Number two is yes, we do have people, we work with multiple people. Example, I work on some brokers and my friends work with multiple. We need someone to underwrite the deal and making sure you talk to the finance companies, lenders and talk to the property management companies. You cannot use the same property company everywhere based on the market, based on the more topics.

We had to look at the deal, but there's so many deals in the market. But you need to focus on what deals you want, number one. We’re looking on you know B-class of C-class, or at least a 100 to 150, or 200 units, what make sense. Tune yourself into multi-family podcast and go to seminars, go where the like-minded people are. If you're watching the news, it’s not going to help, to be honest, you have to go to a conference. You have to step up and make sure that your time, this time commitment is important. “Hey, I have kids, I have a family, a job.” Yeah, that's fine. What’s your goal? My goal is I want to retire in the next five years. I mean, not only me, I wanted to also family and friends, we want to be financial freedom in the next few years. Based on goals, you need to come in and ask yourself and be proactive.

Listen to full episode: https://lifebridgecapital.com/2019/10/ws356-the-advantages-of-multi-family-investing-with-sanjeev-silla/