Looking for info about Apartment Complexes...

[Ian Crosgrove]

New to Real estate investing haven't made any deals yet just doing alot of reading and trying to learn everything I can.

I have been thinking about Investing in Apartment Complexes but would like to know the right way to go about it. I know I will need a HML I just don't want to dig myself in to a hole I can't get out of.

Guess my questions would be... What is the best way to find HML's? Also where would be the best place to find Apartment Complexes?

Any information on the right an wrong way to go about this would be helpful.

Thank you,

[Account Closed]

I once wanted to start in commercial w/o any experience, money, or connections... and I had a few casual interests from people who wanted to buy in w/me when I found a property....long, long ago.

THEN, I got sober real quick as I began getting familiar with my market.

Not to burst your bubble, but if your first question in delving into multifam is "where do i get HML?"... there are easily 50 more questions that precede that one. and then, after you discover the first 50 questions to ask, you'll find out quickly that HML for a true commercial multifam property is not necessarily the best way to finance your first deal.

A really good place to start would be to first understand the numbers. How do you know a deal is really a deal? What kind of DD (due diligence) do you need to do to ensure the numbers you see before you are accurate and valid? What are ALL the risks to be aware of in evaluating a multifam? Mind you, these few questions aren't necessarily at the top of the list of questions to ask... but they certainly precede the question of where to find an H-M-L.

here's a good book that will get you started with what kind of numbers you'll need to know/work with: (there's no affiliate link to this url): What Every Real Estate Investor Needs to Know About Cash Flow... And 36 Other Key Financial Measures

but even before asking specifics about commercial real estate (this is one of the top 5 questions for sure to ask yourself), you need to step back and ask yourself: What are all the options for me to get started in real estate? Where should I begin in RE and Why? Once you understand all (most of) the benefits and risks for where to start: residential, commercial... as an agent, investor, agent-investor, bird-dog, wholesaler, rehabber, being a pro in re (lender agent, appraiser, etc.), THEN you will be better prepared to start.

While you don't have to take such a comprehensive approach in determining where to start your REI career, one thing I can't emphasize enough: Wherever you start, whatever you choose... FIRST understand how to determine with one eye closed and with pencil and paper if a deal is truly a deal ... AND how much profit you can make given your top 2-3 exit strategies on the subject property.

You can't know that without knowing your market and your numbers... in fact, even before knowing your market and numbers, you have to be certain you're working with the right/accurate data that will help you properly evaluate your market and numbers for your subject property.

Again, I don't mean to rain on your parade, but you're best served first understanding what makes a property a deal, before seeking an H-M-L'er. in fact, how you determine value will be (should be) similar to how your money source will evaluate your deal. If you don't know what they're looking for in a deal, you won't get too far even if you found a lender.

Much luck and success in your journey, and welcome to BP!