Multi-Family Investment Funding (Savings/Retirement/Loans)

[Alex Mendoza]

First-time multi-family investor here.  I am looking to invest in some multi-family deals with some local firms (similar structure to Yieldstreet, Cardone Capital, etc.)  Minimum investment vary from $50k to $250k and some require investors to be Accredited (based on the guidelines, I am Accredited) and others do not.  

While I can afford to use my own personal capital to invest in the minimum required to about $50k, but what can I do if I wanted to make a $250k investment? For example, if I wanted a SFH at a cost of $250k, I can easily go get a loan ... can something like this also be done for multi-family deals?

[Arn Cenedella]

@Alex Mendoza

My suggestion for your consideration would be as follows:

Start with educating yourself further about multifamily investing. There are numerous inexpensive ways to do this - BP, podcasts, ebooks, and web research. Contact a variety of apartment syndicators - have them send your their investment summaries, attend their webinar presentations - not with the intent of investing now but rather increasing knowledge etc.

Once you feel knowledgeable about the space, start actively looking for deals in the markets you like with operators you trust.

As @Greg Scott notes, syndication deals do offer leverage.

I believe strongly in diversification.

With $250,000, I would look to make five different $50,000 investments. You can diversify your investments by geography, asset class, and operator. It’s a great way to enter the space in a thoughtful prudent way. Your investments will benefit from the loans and leverage the operator obtains. Spreading your investment dollars amongst various assets is a smart way to get your feet wet.

Good luck with your move into multifamily investing.