Multi-Family and Apartment Investing
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated almost 2 years ago, 01/13/2023
19 y/o looking to buy my first multi-family property
Hey guys,
My name is Lorenzo. I am 19 y/o and originally from Puerto Rico. I am currently studying finance in Bentley University, about 20 minutes from Boston. I am an extremely hungry and ambitious person and I've been looking into Real Estate for a few weeks now. Looking to connect with a veteran in the Boston area to learn more about underwriting and raising capital. Thanks.
Man, I am pumped for you! I can only imagine what I would have accomplished by now if I was disciplined enough to start investing in Real Estate at an early age.
It will be a little bit harder to raise capital if you dont have any deals under your belt but its definitely possible if you have a good deal in hand.
If I were you, I would start by connecting with a local real estate agent that specializes in investing and get their input on what your next steps should be for your specific goals!
- Taylor Dasch
- [email protected]
- 9727656563
Thanks Taylor.
I will definitely do that. I am also studying to get my RE license in MA. I don't really want to be a broker but I'm just getting it for the education and experience.
I am also blessed with very successful parents and I realized that it's an opportunity that not a lot of people have and I have to take advantage of it.
That's why im looking to learn and master how to analyze deals and underwriting so I could possibly go and pitch my parents.
Right now, I'm just looking to start my track-record, just get something under my belt. Not looking to make huge amounts of money, I just want the knowledge and the experience.
hi @Lorenzo Lopez - Bentley is a great school. I've spent some time underwriting deals in the boston area and glad to connect and discuss more.
Boston as you may know is highly competitive and somewhat of a playground for institutional buyers/sellers; but there are opportunities out there for those focusing on the right RE asset class/size.
Hey Justin. Thanks for responding, I would love to connect.
Incredibly excited for you Lorenzo! A big key in the multifamily space is experience. ESPECIALLY in today's market. Luckily for all of us inexperienced folks, you can partner with other WAY more experienced GPs in varying ways.
When you are looking for a GP , it is important that they have experience in your market. If you have not determined your market, this is where I would start. An incredibly helpful book to buy is Joe Fairless's "Best Ever Apartment Syndication Book". It is a comprehensive, DETAILED book that will walk you through everything you need to know to accomplish your goals in partnering in your first deal.
Below are a few ways that I have heard that will grab the attention of a GP to partner with when the person bring the value doesn't have any experience (you and I):
1. Connect an investor with capital to a deal that you (or another GP) has sourced.
2. The reverse of #1 is also true; Connect a GP with a deal to an investor with capital.
3. Source your own deal through broker relationships and bring that deal to an experienced GP.
There are nuances to some of the above suggestions. For example, legally you cannot just bring capital to a deal and be given equity, so you would need to work for the GP in some other capacity to "earn" the equity split.
Do not under estimate the power of connecting people to others!! You got this Lorenzo!! Let me know if you have any other questions!
Hey Cole, I just bought the book the other day! Thanks for the advice. That's what im trying to do.
Right now I'm focusing on learning how to fully underwrite/analyze deals to be able to sell to investors. I tried Rob Beardsley's underwriting model but I found it extremely difficult to understand.
I would be extremely grateful if anybody could help me with this process from scratch. I am a fast learner and have great memory. I just need an experienced folk to explain it to me and I'm on it.
Quote from @Lorenzo Lopez:
Hey Cole, I just bought the book the other day! Thanks for the advice. That's what im trying to do.
Right now I'm focusing on learning how to fully underwrite/analyze deals to be able to sell to investors. I tried Rob Beardsley's underwriting model but I found it extremely difficult to understand.
I would be extremely grateful if anybody could help me with this process from scratch. I am a fast learner and have great memory. I just need an experienced folk to explain it to me and I'm on it.
I have Rob Beardsley's Underwriting Book as well. That book is hard to understand, but it is a great breakdown of what it takes to underwrite a deal. My thoughts for you on that book is to re-read that book as much as it takes to understand what he is saying, while following along with his free underwriting model that he provides. That book is an incredible snapshot into what it will take to be proficient at underwriting deals.
Start learning and asking the right questions and the right people will come along. This will take time though, there is a lot of knowledge that will need to build for you to be competent!
Wait a couple of years and you wont be down 40%.
Thanks for the advice Cole. Really appreciate it. Gonna get to work!
Quote from @Daniel Maciag:
Wait a couple of years and you wont be down 40%.
This is literally the worst and most negative post I have ever seen on a BP form. Shame on you.
Hi Lorenzo,
Did not see anyone ask if you planned to live in the MFH and househack by occupying one of the units. The theory and math are a little different if you can get owner occupied financing and if your own housing costs can be reduced...plus presumably your own onsite management.
Any details would be helpful. Have you lived in that part of MA long enough to learn the market?
Stay warm.
Lorenzo! I advise you to follow the Agent Investor (Tommy Carfarella) on facebook. I would also suggest to start joining facebook groups within your area to network. Lastly, in person and virtual events (such as REIA) will help you to connect with others. I think you are currently taking the right steps and I am all for getting your license to expand your education as this helped me.
What I’d give to be 19 and the knowledge I know now lol. My wife and I follow the brrr method and do all of the renovations ourselves. We’ve learned how to do everything construction why’s over 10 years by watching YouTube videos. But we’re very creative with buying properties with no capital. We inflate the sales price and ask for maximum sellers assist. On commercial loans there’s no limit for sellers assist. So for example if the seller is asking 120k we offer 150k with 18% sellers assist and we wave inspections because I’m a licensed/insured home inspector now. But anyways that leaves us with 27k credit at closing towards the hud fees and the sellers get 123k. We also keep construction cost down by buying used Kitchen cabinets/appliances off Facebook market place and buying materials off people who sell lowes/home depot returns. All across the country they auction off their returns and people buy them by the trailer loads and sell them for a 1/4 of the price.