Looking to invest in an apartment building

[Carl Sandquist]

Hello, i live in Viila Park Illinois and looking to invest in an apartment building. I've done some research regarding this and notice a lot of "new" terms associated with apartments - rent roll, cap rate, net operating income, etc. Seems theres more involved in apartments then single family properties. I realize there are many books, videos and seminars but would like to hear from someone who is currently invested in an apartment building and share their experiences. Thank you, Carl S.

[Bill Manassero]

Hi @Carl Sandquist!

Welcome to BP!  You've had some good suggestions here to help you move in the right direction toward apartment investment.  I personally went from SFRs to duplexes and last year bought a 22-unit in Indianapolis.  I was able to do all of those without outside investors.  But now I am pursuing 100 plus units and see how what @David Thompson says is true.  It becomes a team sport as you get into the larger apartment communities.  I am currently seeking a sponsor (someone with net worth and liquidity surpassing the value of the apartment) and private investors as part of my syndication.  In addition, I need a good syndication attorney, strong "boots on the ground" and an excellent property management firm.  David is right that another entry into multifamily is as a passive investor in a syndicate.  This is a great way to get your feet wet and learn what goes on "behind the scenes" in multifamily investing and management.  It also counts as experience when you are being evaluated by potential multifamily lenders.  Another excellent resource for you is Samuel K. Freshman's Principles of Real Estate Syndication.  It explains in layman's terms what syndication is and how it works for you as an investor.

I am not the most experienced but would be happy to answer any questions you have.

Best of luck.

bill