Advice on multi family investing through investor group

[Terry Lawson]

I want to invest in multi family apartments, but because I don’t have any experience I am thinking of joining an investor group.  Are these groups groups worth my time and money? 

[Moises R Cosme]

Key questions:

1. Who is the owner of the investor group?  What is their background?  What is their track record?  It is important to evaluate the individual that heads the investor group.  

2. What is the track record of the company?  Where are they located?  How many employees do they have?  How long have they been in business?  What do past investors have to say about them?

3. What is the investment?  What are the numbers?  What is the return on your equity?  Do the projections line up with the realities of the market?  Try to question their assumptions, particularly as it pertains to rent rates.  Ask for profit and loss statements for the last 4 quarters (get them broken out by quarter) and see if you can match their results with their projections (for any project they have done).  A good investor group will run separate P&L's for each investment and they should have a record of their projections as well.  

4. Binders - ask if they will provide you with copies of the insurance binder on the subject property; they should be willing to provide you with a redacted version of the policy; approach the situation as if you are buying the building yourself!!  

I hope this helps, if you have further questions check out my profile & feel free to message me.