Transitioning from Single Family to Multi Family

[David White]

Would love to hear you alls opinion on what the proper steps are for a single family investor to successfully transition into multi family. What are some techniques to come across professionally to serious brokers? What are some key factors I need to educate myself on?

[Jonathan Twombly]

Before you ever reach out to a broker, you need to get some credibility first. And the very first thing you need to do is learn how to underwrite multifamily properties.  Without understanding how these deals work and how they are valued, it is useless to talk to brokers.  Even if they pay attention to you, you're likely to do a bad deal and start on the wrong foot.

I'd start by learning to underwrite.  Then figure out where you want to invest, what kind of property you want to invest in, and what size property you are actually capable of closing on. Then invest in some credibility markers, like a simple website, business cards, etc.  Start talking with people in your market, especially the professionals other than brokers, like lawyers, accountants, mortgage brokers, and especially property managers.  Once you've done all that, then ask your network for introductions to the brokers. Actually talking with brokers should be the last step you take, after you've done all your prep work.  It will go much, much smoother for you then.