New CR investor looking for guidance..

[Ben Wofford]

Hello BP members,

I'm 25 years old and I live in Charlotte, North Carolina. I currently make around $12/hr at a grocery store. My goal is to invest in commercial multifamily, but my main problem is I don't have much capital to invest. So, my dilemma is this: should I seek to raise capital, or should I seek to become a commercial real estate broker? 

Let me know if you have any other questions, and I'll answer them to the best of my ability. Thanks.

[Greg Fitch]

Ben, first of all, congrats for having a job. Not only will you learn invaluable life and job skills but having a W2 also opens up important loan opportunities. I would recommend you prepare for making your first multifamily acquisition, by: 1) check your credit and improve your scores if necessary, and 2) start talking to banks to find out what sorts of lending products they offer. Some will lend against the property and not your own ability to pay. That's what you want. Avoid the large banks; they are a hassle to work with. Find your smaller, locally headquartered banks that love small businesses. And 3) save, save, save whatever you can from your income. Squirrel away enough for a downpayment on a smaller property. 4) Have you considered a house hack? Check out Bigger Pockets for information on that. But in brief, if you buy an 2, 3 or 4 unit multifamily and live in one unit at least initially, you can qualify for a FHA loan and only 3% down. That is a lot less money to save.

You don't need to be a commercial broker to do any of this, and in fact you may want the advice of such a broker.

You might also consider cheaper markets outside Charlotte like the Triad or Spartanburg. Multifamilies in the latter are going to better cash flow.

Good luck!