Multi-Family Investors, how did you get started

[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?

[Jim Sims]

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.

[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!

[Bettina F.]

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.

[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!

[Adrie Moses-bailey]

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?

[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

[Lane Kawaoka]

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.

[Steve Kontos]

@Adrie Moses-bailey

Used lines of credit to purchase buildings.

[Llewelyn A.]

@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.

[Adrie Moses-bailey]

Originally posted by @Steve Kontos:

@Adrie Moses-bailey

Used lines of credit to purchase buildings.

 OK Gotcha, that counts as a cash purchase correct?

[Jay Helms]

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

[Richard Smith]

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