Making the jump from single family to muiti-family/apartment

[Allison Jones]

Hey everyone!

My husband I are newer investors with 3 single family rentals with the hopes of adding some more.  However, we would eventually like to move into multifamily units and apartment buildings.

Has anyone made the jump from single family homes to multiple family/apartment buildings? Any TIPs you can give on making that first purchase?

Thank you!

[Lennon Lee]

I made the jump from a small residential portfolio of condos and single family homes into large multifamily properties. 

I started investing as a passive investor with an experienced group/operator through the syndication model where my participation was totally passive but allowed me to start my education in  the space beyond podcasts and books.

I later started building partnerships with other operators and brought value to the relationship in different ways in order to earn my seat on the table (i.e. the active side of the deals). That allowed me to build credibility and relationships in the industry as well as creating a network of other passive investors that, just like me,  find value in having a good network of multifamily operators with whom to place our capital with.

After that process I then moved into building partnerships with like-minded groups to venture into the direct acquisition of large apartment complexes and effectively become an operator in the multifamily space.

That is my experience moving into multifamily and by no means I'd say it is the best way to do it. What I can say is that by having a patient approach I was able to gradually earn my badges and build the confidence to now pursue 100+ unit apartment acquisitions.