1) “Are there still good multifamily deals out there?”
Yes. Let there be no misunderstanding… The business of investing in apartments IS very competitive. That is why you need an exact system, strategy and good relationships with the appropriate players, so you can close deals!
More importantly… You need to buy based on the right criteria. If you missed it… you can get that by clicking here.
2) “How many deals can I expect to do, if I am just starting out?”
Regarding the investors I am associated with, I have witnessed them grow portfolios of 1,500-2,000 units in a handful of years, starting from scratch.
The Synergetic Investment Group has had up to 800+ units (the group has sold some properties).
A realistic expectation as far as how many deals you can potentially do in your first year, would be 1 significant size deal and then you can most likely expect exponential growth after you close your first deal. This is assuming you put forth a reasonable and consistent lead generation effort each week. That typically entails a few hours each day, Monday-Friday of reaching out to brokers for potential deals (usually in the form of making phone calls, however there are obviously multiple ways to network; ie. email, social media, face to face, etc.)
Everyone will obviously experience different results when buying investment properties. Investing in multifamily apartments is a risk, just like any other type of investment opportunity. As an investor, you could lose some or all of your money.
3) “How can I do this business with a family and a full-time job?”
The name of the game is lead generation. The more phone calls you can make to brokers in attempt to find deals= the better. If you can only make calls for 30 minutes/day on your lunch break- do that. Maybe you give my course to someone to learn the business and your partner with them. Turn off the television. Just do as much as you can. The more you put into it= The more you will get out of it. You got to want it!
4) “How much time do I need to put into this business to try and find deals?”
As stated above… a few hours each day, Monday-Friday of reaching out to brokers for potential deals (usually in the form of making phone calls, however there are obviously multiple ways to network; ie. email, social media, face to face, etc.) will yield you more than enough deals for you to analyze!
5) “How can I make my first ever investment in real estate be in multifamily/apartments?”
That’s what is so awesome about the business of buying and investing in large multifamily apartments… depending on what you can bring to the table, you can participate in a deal in a variety of ways.
For example: If you have no money and/or experience, then you need to partner with people who have those things. The value that you can provide is by going out and finding a really good deal. Finding a good deal is what drives the whole business. There is a lot of money sitting on the sidelines right now… so finding investors are not the problem.
6) “I’ve never invested in real estate before….Should I start with buying smaller single family deals and work my way up?”
This is without question… the biggest myth in the field of real estate investing!
People start with smaller properties because they think it is safer. Ironically, smaller properties are MORE difficult to scale. With bigger properties (50 units or more) you can afford to implement a property management company, which allows you to focus on running the business. You make more money with a pen, than with a lawnmower.
7) “Will people take me seriously since I don’t have any experience?”
YOU don’t necessarily need to have experience. You will need to partner with someone who does. Typically, this can be what is called a sponsor and you would leave most of the profits and “meat on the bone” for the sponsor/investor partner for bringing the cash and/or the experience to the table for you.
As previously mentioned… I have people that will sponsor a deal that makes sense.
8) “I understand that capital, experience, net worth, and liquidity are all factors for securing investors and financing. What if I don’t have any of these things?”
No worries… Determine what you can bring to the table and what you need and go find a JV partner. It cannot be understated that finding a good deal IS the most crucial piece of the puzzle.
I help my clients in my program with all of the above things.
9) “What if I have money saved up to invest, but I don’t want to be a landlord?”
No worries again… Find the person that is out in the trenches and is finding the deals! One person runs the deal (commonly referred to as sweat equity) and the other person with the capital is the silent partner.
10) “How do I buy and/or invest in a property that is not in my backyard?”
All you need is a solid property management company. I know investors that live in CT and Florida and have ownership in property that is in Texas, Chicago, Tennessee, and Georgia!
11) “Should I live in one of the units of the property I buy?”
Many people do that with 2-3 families, but that is not recommended for larger properties.
12) “How does the financing part of it work? I don’t think I can qualify for a mortgage.”
You don’t need to worry about that. I have a mortgage broker that can help you, if you find a good deal. Buying a large apartment building is not like buying a single family house. The numbers of the property and the deal is what dictates everything (cash flow, cap rate, cash-on-cash return, etc.)… as opposed to your personal income , credit history, etc.
13) “I have no idea how to manage a large apartment building! How do I learn that? Do I have to manage a large apartment building myself?”
You will learn as you grow and gain experience. Focus on just finding a really good deal to start. You will most likely be partnering with someone who has experience in overseeing a property management company… So, no. You will not be managing a large property. You or your partner will be managing the property management company.
14) “How do I find deals to analyze?”
There are various ways to find a deal to analyze! You can get deals from the seller if they are trying to sell their property “for sale by owner” (FSBO), through a broker (which is the primary method that I teach in my program), from an asset manager of a bank, from a property management company, etc. A potential deal can come from anywhere!
15) “How can I get help with reviewing my numbers for a potential deal and see what I may be doing wrong?”
I offer a done for you underwriting service. We do the tedious number crunching for you, then explain whether you have a deal or a dud and why!
16) “What if I have no idea about the market I want to buy an apartment building in?”
17) “How do I buy multiple apartment buildings and build a big portfolio? Isn’t there a limit to the amount of money a bank will loan you?”
The key to growing a portfolio of apartments is partnering with investors and raising private money. In doing this… The sky’s the limit!
18) “How do I find a partner that is as serious as I am about buying apartment buildings?”
Networking at your local real estate investing association is a good start. The website BiggerPockets.com
is a good forum and as one of my students…you can also network in my private Facebook group-
I would be more than happy to connect you to someone who shares your same passion for this business.
19) “Isn’t buying large apartment buildings a lot more risky?”
Not if you BUY A GOOD DEAL!… In a good area and there is good cash flow, etc. Watch my video on real estate markets… You’ll be ok!
20) “How do I apply for a loan at a bank, so I can buy a large apartment building?”
You will have a mortgage broker help you. The process is much different than walking into a bank and buying a house. This is another area that I help my clients in.
21) “I have no idea how to structure equity positions for the deal. Can you help with that?”
Absolutely! This is part of the priceless mentoring and support I offer in my program.
22) “I want to buy an apartment building, but I don’t know any investors… Can you help me with that?”
We don’t function as private lenders. We prefer to buy deals wholesale.
I will teach you how to raise private money however, so you can go out and find investors!
23) “I don’t have any money for the down payment and the closing costs? How does that get paid for?”
Partnering with investors… It’s a beautiful thing!
24) “I don’t have any money if repairs are needed for a large multifamily. How does that get paid for?”
Once again…Partnering with investors… It’s a beautiful thing!
25) “I’m afraid I don’t know enough about buying and investing in large apartment buildings! What exactly do I need to learn before I can get started? What if I make a costly mistake?”
No worries! You just need to know enough to get going, then get going! The bottom line is generating leads on a consistent basis, until you find the right deal and my students get full support all along the way.
26) “What is a sponsor?”
The sponsor is someone who has the net worth, liquidity and experience to help you get a mortgage to buy a large apartment building. You would form a JV partnership with a sponsor and in exchange, give him/her a piece of your deal.
27) “How does one find a sponsor as a new investor seeking to invest in multi-family properties?”
Networking at your local real estate investing association is a good start. The website BiggerPockets.com is a good forum and as previously mentioned… I have investors that I am associated with that will sponsor a deal that makes sense.
28) “And I have also heard of teams that get together and buy these kinds of large multifamily investments, REIT and other groups. How do you find these groups?”
Real estate investing bootcamps, mastermind events, chamber of commerce, rotary clubs, your local REIA, LinkedIn, Any place where you think people with cash hang-out.
Many times, it’s just regular people that partner-up, pool their resources and get it done!
29) “What kind of down payment is usually required to finance?
It varies from market to market and each deal is unique… but typically 25% is a good ballpark figure. No worries though… This does not need to come out of your pocket- you will again, partner with investors. Which brings us to the next question…
30) “I’ve heard of gurus doing no money down however I feel it to be very much an exception to the many rules of real estate investing… How can I buy property with no money down?”
It is no $ down… None of YOUR $ down! Your investor partners bring the cash to the table, in exchange for an equity position of the deal.
Did You Find The Info You Were Looking For?…
Let Me Know If You Have A Question That I Didn’t Address Here.
Learn More About Me & How I Can Help You Get Started In This Awesome Business!
By PhoneOr Email Chris.Tracy@cbmoves.com
You Can Also Shoot Me A Quick Text Message At The Above Number If That’s Easier For You…
I Look Forward To Meeting You & Helping You Buy A Large Multifamily!