Getting started in Medium to Large Multi-Family

[Reed Meyer]

How can I get started in medium multi-family without a track record? I am thinking the 16-20 unit range. Obviously need about ~75% loan from the bank and would need significant money from a partner for the down payment and rehab. 

I am looking at opportunities in areas with large rent disparity where we could go in and rehab that are already selling at around 6Cap. We could rehab these and increase rents by $100-$150 units each and force appreciation so the math works great. However, how can I convince the bank and a partner to get on board when I have no experience? Will a good, confident sales pitch and well organized, convincing OM be enough to get the money if it truly is that good of a deal?

Or is it truly a necessity to start small and get a 4 or 6 unit under my belt to prove myself before moving up to bigger deals? I really just want to jump into a big one first because I know that they'll take similar work upfront anyways and the higher unit counts are far more lucrative due to benefiting from economies of scale.

Thanks a lot. I'd love to get any and as much advice as possible!