First apartment purchase

[Farakh Zaman]

Hi,

We're starting our search for our first apartment (6-24 units). So far we have a couple SFH and a 4plex in Colorado. One of the SFH has over a 100k in equity tied up in it so the plan is to 1031 exchange that into a larger property. Also we have additional money to put into the deal.

Has anyone else done this? Where did you start?

We have a great team for buying smaller properties but I don’t have a broker for commercial properties nor do we have a lender lined up yet for commercial properties. What is he best way to set up a team for this type of endeavor?

We have two markets in mind for this purchase, the front range in Colorado and also Dayton Ohio. We are familiar with both areas and comfortable investing there.

I’m currently reading multi family millionaires to learn a bit more. Any other book recommendations are also appreciated.

Overall just looking for some guidance on how to proceed forward. 

[John Warren]

@Farakh Zaman I would actually start with the property management company. Most lenders will want to know how you will manage the property once you take it down, so if you at least have some sense of who could/woud manage the property, that will help quite a bit with presenting your business plan. 

From there, I would jump on loopnet and start networking with every commercial broker in the market who handles the properties you are interested in. 

To find a lender, make a list of all the local banks in the area. Begin by contacting their "VP" of commercial lending and tell them your plan. You will quickly figure out which 2 or 3 banks will want to work with you as an out of state investor. 

Continually ask the PM's, Bankers and Brokers if they have referrals for the other trades, and you should quickly figure out who does what in your target market place.