Starting out with money???

[Ellis Hammond]

My goal is to create financial freedom through passive real estate income and I have listened and read so many podcasts and books on strategies but most have been from investors who started with little to no money (much kudos to all of you- seriously i have been inspired.) Now I know this is almost a silly question "how to start out with money" but my real question is what strategy would you use if you started with around $200k? 

Would you start in multiple smaller complexes or go for larger complexes? Maybe try and save up or partner with someone else and go ahead and invest in a 50+ unit complex? 

Would love to hear thoughts!

Thanks!

[Jason Monroe]

@Ellis Hammond,

There are a ton of national banks one of the people I found on the site that I talked to but didn't use was 

https://www.biggerpockets.com/users/upenpatel

Upen was willing to go to bat, but my property was short some things that made it so it didn't work for them. I went with a bridge loan that had a "Prove You Love Me!" interest rate. 

Most national banks Wells Fargo etc... can write anywhere US Bank has portfolio loans and they can write for anywhere those loans go up to I think either 3 or 5 million.

If you had a partner with multifamily experience and BOTH YOUR GOALS are aligned. Then yes, it will change everything and open up the world to you. BOTH OF YOUR GOALS need to be aligned.

There will be a power dynamic that will change as you get up to speed, so agree up front on when you're going to evaluate the partnership maybe it's 2, 4, or 7 years 

The roles and responsibilities need to be very clear. Each building is a business onto itself that way there is no miss when it comes to expectations. 

There was a biggerpockets podcast for this multi family guy in NY that wrote a book on multi family so you might use that to come up with a roles and responsibilities matrix so you can ensure that you have all of the various facets of the business covered. 

LA and the surrounding areas have lots of rent control. DO NOT BUY IN RENT CONTROLLED AREAS unless you can sell ice to an Eskimo or you have a lot of capital set aside for those buy outs. If you don't have a bunch of alternative housing options it can be very expensive to get people to leave.

AND IF you like my posts VOTE ME UP. Every vote gives me airline miles and I like Hawaii ;-)