REIT apartment

[Aaron Ross]

1. I want to build a portfolio of apartment complexes. Possibly sell to a REIT someday, where/how do I start building that relationship?

[Brian Burke]

@Aaron Ross Joel is right, setting up a REIT is expensive, and it's wasted effort without millions of backing (and I don't mean two million!). As a beginner, obtaining funding to back a REIT isn't going to happen, you'd never get past a broker-dealer's third party due diligence.

The way you want to do this is via private placements. These are less regulated than a REIT structure (think: less expensive and more flexibility to set terms). You fund each deal with investor $. Each property is a separate partnership, so you do it one at a time. The problem: this is easier said than done. Finding investors is all about track record. If you don't have one, finding investors is very difficult. Experience is also important to lenders. So...just like anything else, there are no shortcuts. You have to work your way up, and it takes time, hard work, and a deliberate progression up the experience ladder.