Investor · New York, NY · Member since 2013 · 4 posts · 1 vote
I plan to get into apartment building in a year or less. But it seems to be daunting. Anyone who is doing good in this area, how did you start? If you do it all over, how would you do differently. Thanks!
Investor · Fort Worth, TX · Member since 2012 · 209 posts · 37 votes
13y
@Victoria Green multi family investing is pretty good in Texas... although prices are very competitive right now and you're dealing with mostly cash buyers. We got into a quad a few months back in a good deal after meeting/building relationship with the seller. Doing it over again I'd probably get into some better marketing (letters, postcards) to absentee owners to find more deals.
Rental Property Investor · Atlanta GA · Member since 2013 · 85 posts · 82 votes
13y
Hi Victoria ... I bought my first 12-unit apartment building in Washington DC 2 years ago. This was a big scary step for me. But surprisingly, as I was doing due diligence, I was becoming more and more comfortable with the idea. In fact, by closing, I wished the building was bigger!
What I'm saying is, the reason we don't get started with commercial real estate investing is because we tell ourselves we can't do it, and our best friends and family members agree! This was (and still is) very frustrating to me.
I found that I actually had to stop being friends with certain people and start making friends who actually want me to succeed.
The other factor is your mind. We limit ourselves because we're afraid, or we're uncomfortable. So you must continually work to expand your comfort zone.
The way I still do it so to look at a lot of deals that are outside my current comfort zone. So for example, I can see myself doing a $2M deal, maybe a little more, but I have a hang-up with a $5M deal. So I request marketing packages for $5M deals, run the numbers for them, do my analysis. I even go on a property tour. The more I do this, the more I act "as if", the more and more comfortable I get, and the more I can visualize myself doing a deal like that.
Also, in the beginning, I read every possible real estate book I could get my hands on. I would also strongly consider taking a course or seminar. These can help expand your comfort zone, learn skills, and maybe avoid some mistakes.
Investor · Snohomish, WA · Member since 2013 · 629 posts · 84 votes
13y
@Michael Blank - I like your story.
Victoria - owning apartments is great, just do lots of research beforehand and find a mentor who already owns one. A good broker should be able to help you start analyzing the deals as well to make you understand what the numbers will look like. Once you've got passive income you will want more!