A grand start to my multifamily journey

[Brendan Davis]

Hello all,

My name is Brendan and I am looking to start my multifamily journey. I come from a very low income family, which has started a fire in me since I was 15 years old. When I was 16 I started my first business, as is like most first businesses, failed. At 18 I started my second business which took 6 more months to fail than the first one! (Progress.) I am now 19 with my real estate license, about 9 months in and 5 deals under my belt. I now have an incredible understanding of real estate. I switched to commercial recently to meet a higher net worth network of people without any emotion attached. I recently closed on a quadplex. I have figured out how to efficiently and consistently get a 10% response rate on marketing materials. I know how to find the deals. Now I need to figure out how to apply them to my own corporation. Where do I look for private lending? How do I know who to trust? These are questions I need answered to start my journey.

Goal: Cash flow $200,000/Mo to help pay for my family's life.

If it's easier, I would love to have a video call or a direct response to meet most of you. You are all valued, reputable characters. All with brains I would love to pick.

Thank you,

-Brendan

I had posted this on another forum, however I think this one suits my questions better.

[Scott Mac]

Just off the top of my head.

Multifamily---

20% down is standard unless it's a you live in FHA, then it's 3.5% down.

If you intend to live in a unit get to know the FHA loan for 2,3,4 plexes and use that.

Make yourself into the borrower they want, ratio's down, cash reserves--different lenders may haev a little different requirements between them.

Some other smaller bank held loans (portfolio loans) may be 20% to 35% down.

Focus on getting the down payments while keeping an eye on any net worth requirements the lenders may have for you personally.

The more down payments you can get the faster you can grow.

Many people hold their assets in an LLC, or LLC's (not a Corp), many others use an Umbrella Insurance Policy--it's a decision you will have to make.

You are looking for Cash Flow. More cash flows from (it can, or it can't--it's risky) more run down areas (read that can be Dangerous areas) than the middle class areas, but they can cash flow too.

Decide on if you are a Class B or C guy (Class D is usually not a good move for a beginner, due to the roughness and issues of the area).

You will need a good accountant for taxes and bookkeeping, and an eviction attorney.

You can self manage or hire a manager.

Good Luck!