How Did You Get Started In Multi or Apartments?

Question

Did you start from single family? Family already in the real estate business? Those are just a few examples. I am curious to know how everyone got started. Please forgive me if someone has a topic like this already.

Jeff Greenberg · Answer

It seems that my route was a little different then most of those previously mentioned.  I came into real estate very late in the game and didn't and still don't have time to use the monopoly method of creating a portfolio.  I did go to a seminar on investing in MF properties and became a voracious reader of anything on MF ownership and investing.  I did invest, as a passive investor, in a syndicated portfolio investment and was able get a better understanding of the process.

My first investment was a 20 property in which I used none of my money and walked away with 50k at close.  My partners and I own only 25% of the deal, while our investors own the other 75%. This property is in Texas and I am in California, with my partners in Alaska and Penn.

I continue to do investments with partners in Colorado, Texas, and many other states that are showing growth in this economy.

I continue read books such as McElroy's, and he also wrote a chapter in the Real Book of Real Estate compiled by Kiyosaki which I recommend. Books by Lindahl, Trump, George Ross, and others line my shelves

I also go to certain Seminars and conferences knowing full well that the "gurus" will try to upsell and very few of the attendees will ever perform.  From these events I have gained groups of friends and fellow investors that I can call on.  From this circle of investors I learn more and more. I attend 5 different REI groups including 2 I run as well as a mastermind group.  BP is also a great place also to learn and meet people.

The four green houses to the red hotel is a great slow and steady way to wealth.  I started much too late in life and don't have the time left for that.

My recommendation is this, read, read, and read.  Find someone that is doing what you want to be doing and find a way to be of service to them.  It doesn't matter if they are local or three states away.  The law of reciprocity works.

There are many ways to skin the cat.

Dennis Tierney · Answer

I started in multifamily as I wanted to get $ out of the stock market and diversify assets but didn't want to have another job of property management. From everthing I'd read (including McElroy's book mentioned by Seth) to be cost effective in using professional management you should usually buy multifamily of 20 units or more in size and that's what I've done and it's worked out for me. I intend to hold property for retirement income and eventually pass the property on to children for their income.

Slavik Lund · Answer

I personally enlisted in the military for its educational purposes. From that I have a VA loan which gives me triple zero down at a 3% interest rate.

That was quite literally ZERO dollars out of my pocket (seller paid for closing costs). I purchased a 4-plex because as well as living for free I have 2 units that pay my mortgage and utilities and 1 unit that pays for expenses and profitability.

Although I've already been in the business for many years (family business). This was the first big purchase all on my own.

Bruce Thomas · Answer

All of your stories are great. I like to see how folks got into the game. Let's keep it going with more. :)

Brian Burke · Answer

I had one rental house and one rental condo.  Sold them both and did a 1031 exchange into a 16-unit complex.  That got me hooked on multifamily.  That was over a decade ago.  Hundreds of units later, still growing!

David Krulac · Answer

Family was NOT in real estate business, I became self taught.  First house bought single family house from the state department of transportation at an auction.  I had never been to an auction, if was interesting and have bought many more properties at auction since.

I'm always looking to buy real estate, good times, bad times, everywhere in between.  I tell people that I want to buy property.  Have bought a bunch of property that was not for sale, not listed, not FSBOed, not advertised, no sign, etc.  The second property that I bought was a multi-unit that was owned by the grandmother of the janitor at the school where my girlfriend taught.  Only 3 degrees of seperation.  The grandmother had passed and the family wanted to sell the property and settle the estate.

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George Paiva · Answer

Family Business.  Grew up landlording and my Dad was a general contractor as well.  I guess you can say I was groomed to be one.

Fast-tracked to Landlording because Dad passed on over 2 years ago and started managing (8 units, 3 properties).  Liked it so much that I bought 4 unit property last February.

Looking to continue adding multifamily properties to my portfolio for cash flow.  I am a long term buy and hold.  Want to retire in 10yrs!

Allan Landfried · Answer

My first purchase was a triplex 7 years ago. I live in one unit and rent the other two. Still living there today... cant beet living for free (the rent pays for the entire cost of the house)

Mike H. · Answer

The thing that would concern me about buying a duplex as my first investment would be the turnover. I just don't see duplex renters as being from the same renter pool that someone looking to rent a home would be from.

The one advantage I would see is that you would get two doors with one loan. Getting financing is, without a doubt, the hardest part of being an investor. If I had someone that could finance me at 70% LTV all day, I would have about 40 homes right now instead of 17.

I'd give my left arm for a LOC at a bank of about 500k just so I could take down 6 or 7 houses in one fell swoop without having to beg all my local banks for a loan for each one like I'm doing today. :-)

I don't see duplexes appreciating like sfh's either. So if you're a long term buy and hold, I think you might be foregoing some of your long term gains there as well.

Sam W. · Answer

Craig Sturgill .... I focus up in your neck of the woods.  Good luck with the deal.

How Did You Get Started In Multi or Apartments?

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