Real Estate Agent · Woodbridge, VA · Member since 2013 · 52 posts · 7 votes
I am a Realtor in the Washington D.C area. My expertise is Residential Real Estate. But as of lately I've been doing tons of reading and research and I really would like to purchase my first multifamily investment. I don't want to start with the 20million dollar 50 unit estate. I want to start small (4 - 10 units) and work my way up.
Where do I start?
Also what are some things I should consider if I am looking for an Investor?
I am completely "Okay" with not making much if any on the 1st investment. I feel like the first one will be my stepping stone to learn the process and in's & out's of the business. I understand the language I've done some case studies and I've looked at properties on LoopNet and I still believe there is more I need to know about. ALL HELP IS WELCOMED!!
Sam Eligwe Welcome. You can wing it on your own as a newbie in the single family arena, but that won't work very well in commercial. You need to find a seasoned investor that you can latch onto initially. I would network like crazy with some of the commercial agents that are active in your area with multifamily, let them know what you're interested in and see if they can connect you with some seasoned MF investors. You can also research the ownership of small apartment complexes in your area and track them down that way. And there will be an apartment management association in your area offering networking opportunities.
Since you're an agent, maybe they'll let you manage a smaller property after a bit of learning their "system". Build your expertise and start hunting down deals. Get your mentor to partner with you on a deal, where you do all the work to acquire, rehab, stabilize, and manage it, and you split the profits. And it will just progress from there. If you develop the knack for finding good off-market value plays, negotiating a good price, turning them around, and running them profitably, the sky's the limit.
Just put yourself out there and kick inhibitions aside. An energetic, enthusiastic, hardworking, and motivated individual is usually someone that seasoned investors will give a shot to. And properties in the 10-100 unit size are usually the province of local owners, not larger institutional players.
Also, the CCIM is a credential you may well want to pursue.