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Updated over 5 years ago, 05/24/2019

User Stats

51
Posts
14
Votes
Adrie Moses-bailey
  • Miami, FL
14
Votes |
51
Posts

Multi-Family Investors, how did you get started

Adrie Moses-bailey
  • Miami, FL
Posted

Hey  I am new-ish around here and would like to get into multi-family one day so was hoping to hear from some investors in the apartment space about how you got started. WHat was your first multi family deal and how did you position yourself for it?

User Stats

8
Posts
4
Votes
Jim Sims
  • Investor
  • Salem, OR
4
Votes |
8
Posts
Jim Sims
  • Investor
  • Salem, OR
Replied

I bought a duplex in 2002 with an FHA loan. I think I had to come up with 3% down at the time. I borrowed $8K from my 401K to close (I only had $16K in my 401k at the time and 50% was the most I could borrow). Price was $212K. One unit was vacant and I moved into that unit.

User Stats

678
Posts
465
Votes
Steve Kontos
Pro Member
  • Investor
  • Great Neck, NY
465
Votes |
678
Posts
Steve Kontos
Pro Member
  • Investor
  • Great Neck, NY
Replied

@Adrie Moses-bailey

I leveraged my credit to purchase my first asset.  This helped build my credit resulting in more lines which meant purchasing more buildings!

  • Steve Kontos
  • Rent To Retirement logo
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    User Stats

    606
    Posts
    697
    Votes
    Bettina F.
    • Investor
    • Post Falls, ID
    697
    Votes |
    606
    Posts
    Bettina F.
    • Investor
    • Post Falls, ID
    Replied
    Find a good commercial broker. In our area, we have one well regarded broker who specializes in apartments and multifamily. He helped us and mentored us that first year.

    User Stats

    1,561
    Posts
    732
    Votes
    Jay Helms
    • Rental Property Investor
    • Gulf Breeze, FL
    732
    Votes |
    1,561
    Posts
    Jay Helms
    • Rental Property Investor
    • Gulf Breeze, FL
    Replied
    Originally posted by @Adrie Moses-bailey:

    Hey  I am new-ish around here and would like to get into multi-family one day so was hoping to hear from some investors in the apartment space about how you got started. WHat was your first multi family deal and how did you position yourself for it?

     Here’s our story: 

    First Duplex: https://www.biggerpockets.com/blogs/8160/50653-purchasing-our-first-duplex

    Good luck!

    User Stats

    51
    Posts
    14
    Votes
    Adrie Moses-bailey
    • Miami, FL
    14
    Votes |
    51
    Posts
    Adrie Moses-bailey
    • Miami, FL
    Replied
    Originally posted by @Steve Kontos:

    @Adrie Moses-bailey

    I leveraged my credit to purchase my first asset.  This helped build my credit resulting in more lines which meant purchasing more buildings!

     What do you mean by leveraged your credit?

    User Stats

    51
    Posts
    14
    Votes
    Adrie Moses-bailey
    • Miami, FL
    14
    Votes |
    51
    Posts
    Adrie Moses-bailey
    • Miami, FL
    Replied
    Originally posted by @Jay Helms:
    Originally posted by @Adrie Moses-bailey:

    Hey  I am new-ish around here and would like to get into multi-family one day so was hoping to hear from some investors in the apartment space about how you got started. WHat was your first multi family deal and how did you position yourself for it?

     Here’s our story: 

    First Duplex: https://www.biggerpockets.com/blogs/8160/50653-purchasing-our-first-duplex

    Good luck!

     Jay thanks for sharing that, how long did it take you to save up the downpayment

    User Stats

    4,248
    Posts
    2,624
    Votes
    Lane Kawaoka
    Pro Member
    • Rental Property Investor
    • Honolulu, HAWAII (HI)
    2,624
    Votes |
    4,248
    Posts
    Lane Kawaoka
    Pro Member
    • Rental Property Investor
    • Honolulu, HAWAII (HI)
    Replied

    Adrie Moses-bailey you need to align yourself with a mentor or a group of experience investors. Unlike sfh mfh is high stakes and even more of an unfair game to newbies.

  • Lane Kawaoka
  • User Stats

    678
    Posts
    465
    Votes
    Steve Kontos
    Pro Member
    • Investor
    • Great Neck, NY
    465
    Votes |
    678
    Posts
    Steve Kontos
    Pro Member
    • Investor
    • Great Neck, NY
    Replied

    @Adrie Moses-bailey

    Used lines of credit to purchase buildings.

  • Steve Kontos
  • User Stats

    664
    Posts
    1,741
    Votes
    Llewelyn A.
    • Investor / Broker
    • Brooklyn, NY
    1,741
    Votes |
    664
    Posts
    Llewelyn A.
    • Investor / Broker
    • Brooklyn, NY
    Replied

    @Adrie Moses-bailey

    I house hacked a 2 unit building in 1997.

    Learned to be a Landlord during the process. Living in the building teaches you a lot.

    One of the most valuable lessons while living in the building is that you must do your BEST at Tenant Due Diligence otherwise, you will have a neighbor you dislike! This is even more important in places with STRONG pro-tenant laws as we have here in NYC.

    That sets you up for future investments.

    If you have an appreciating assets, then you can leverage off of that Asset and buy another one.

    The skills you picked up in your house hacked 2 Unit prepared you for your first full multi-family investment property.

    After the 1st one in 1997, I bought 7 others, sold one. 

    That was my formula and I highly recommend it if it makes sense in your area.

    User Stats

    51
    Posts
    14
    Votes
    Adrie Moses-bailey
    • Miami, FL
    14
    Votes |
    51
    Posts
    Adrie Moses-bailey
    • Miami, FL
    Replied
    Originally posted by @Steve Kontos:

    @Adrie Moses-bailey

    Used lines of credit to purchase buildings.

     OK Gotcha, that counts as a cash purchase correct?

    User Stats

    1,561
    Posts
    732
    Votes
    Jay Helms
    • Rental Property Investor
    • Gulf Breeze, FL
    732
    Votes |
    1,561
    Posts
    Jay Helms
    • Rental Property Investor
    • Gulf Breeze, FL
    Replied
    Originally posted by @Adrie Moses-bailey:
    Originally posted by @Jay Helms:
    Originally posted by @Adrie Moses-bailey:

    Hey  I am new-ish around here and would like to get into multi-family one day so was hoping to hear from some investors in the apartment space about how you got started. WHat was your first multi family deal and how did you position yourself for it?

     Here’s our story: 

    First Duplex: https://www.biggerpockets.com/blogs/8160/50653-purchasing-our-first-duplex

    Good luck!

     Jay thanks for sharing that, how long did it take you to save up the downpayment

     Our down payment for this one came from selling our Jeep and cashing in a whole term life insurance policy that had barely earned 1% in the last 10 yrs. I was reluctant at first but has proved to be a great decision as 1.5 yrs later we bought a 42 unit apartment complex : https://www.biggerpockets.com/blogs/8160/67620-purchasing-our-first-apartment-complex

    User Stats

    1
    Posts
    0
    Votes
    Replied

    @Bettina F. who do you recommend for commercial brokerage?  We live in CDA and are looking for our first multifamily investment?

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