Multifamily Investing

[Harris Dixson]

Hello everyone! I am looking to get started in multifamily investing. I have read some blog posts, listened to some BP podcasts, and read some books on the subject. I would love to jump right in to large multifamily properties. Though smaller multifamily properties would still be fine. 

At this point I really want to take action. The problem is I don't really have any money. I am aware of some of the creative financing methods. In my opinion I think a partnership would be the best way to get started. 

What should i do? I would really appreciate your advice.

Thank you so much!

[Chris Washington]

@Harris Dixson

Welcome to BP! This is definitely the right place to help you narrow down your focus and figure out your next steps.

My first question would be what type of multifamily you are interested in? 1-4 units (residential MF) and 5+ units (commercial MF) are handled very differently, so depending on what you want to focus on your next steps will be different.

Personally, I am focusing on larger multifamily (specifically 20-50 units or 75+ units). If commercial MF is were you decide you want to specialize in, your first step (assuming you've already educated yourself on all the basics through books, podcasts, etc.) is to learn how to analyze commercial MF properties. Analyze as many properties as you can until you are able to determine the difference between a good and bad deal, as well as calculate what price you would offer on a property based on your investment criteria and local CAP rates.

It will be easier to find a partnership/funding once you have a solid deal with good numbers in hand. You can shop your deal throughout your network (family, friends, coworkers, people you've met at RE meetups, etc.) to find someone to partner with.

Hope this helps...Best of luck on your REI journey!