Total newbie, how do I learn what multifamilies are available?

[Scott Kammerer]

Hi BP, first quick intro followed by my goals and intentions: 

Vegas resident. My income is $64k annually before taxes plus another $12k annually, tax free. No wife, no kids. I recently cashed out of the stock market and have about $50k in liquid cash. I also have about $20k in available credit and am virtually debt free.

Goal: I would like to find a duplex/triplex/quad to purchase with a 0% down VA loan and move into one of the units and start to get my feet wet while making some money. I'm not looking for an Earth shattering ROI here, I'm not that guy that thinks he's going to luck into a 20% cap rate and ride the easy wave to riches. As long as my financial situation is trending in the upwards direction, the knowledge and experience ROI will make it more than worth it to me.

Which brings us to this post, and frankly, I'm so new and overwhelmed at this point that I'm not even sure exactly what question I should be asking. Are there agents in town that anyone can recommend that specialize in multifamily?  I'd really like some assistance from someone that would have access to sales that aren't listed on the Zillow/Trulia type sites because those all seem to either have an offer on them or are sitting on the market for very obvious reasons. 

I guess if I were going to try to whittle this down into one simple question it would simply be: Where do I start?

[Jonathan Twombly]

@Scott Kammerer

1.  Get started.  Actually taking action will calm your nerves and your sense of overwhelm, because it will accelerate the learning process, which will make you more confident.  The best way to get started is to just start going out and looking at deals.  At first, it does not really matter what you are seeing.  Just start getting familiar with things in your market.  Ask a lot of (dumb) questions.  Go in with the attitude that you are just getting yourself educated, so there is no pressure on you to make an offer.

2.  As @Robert Rayford said, get educated.  This is extremely important for a number of reasons.  First and foremost, it will raise your knowledge level and with it your confidence.  But second is that it will help you speak to brokers on a high level.  You want them to think of you as on their level, as knowing what you are doing, so education is really important.  But please don't let education become an excuse for not taking action.

3.  Learn how to analyze deals financially.  This is critical.

4.  Once you start to get familiar with the markets and get a better idea of what you want to invest in, actually sit down and write it out on paper.  What do you want to invest in, where do you want to invest, and why do you think these are good ideas?  What is the reasoning behind your thinking.

5.  Turn your thoughts into a broker credibility package.  This package should contain your bio, photo, contact information, a detailed list of the criteria of property you are looking for (size, price range, area, type, investment play strategy, etc.), and the list of information you need to evaluate a property.  Almost no one does this, it will impress the heck out of brokers, and it will help get you in line for pocket deals.

5.a.  A note on pocket deals.  You can usually only get access to these if you are an insider - someone who has closed a deal with the broker before, or a known closer in the market.  If you are not either, then you get trapped in what I call the New Investor's Catch-22.  (No broker will give you your first deal, so how can you get your first deal?)  To break through this logjam, steps 1-5 above are critically important.  As a new investor, you need to get the broker's attention and show them you're not the average new investor/tire-kicker who will never actually do anything.  Do something unusual, like prepare a credibility package, and that will help.

6.  Get your team in place - lawyer, accountant, mortgage broker, contractor, and property manager (if you are going to use one) - so that you can move fast if you find a deal.  Put these people into your credibility package as well so that the broker knows you have a team behind you.  Tire kickers work alone.  Pros have teams.  Show the broker you're a pro.

7.  Find partners, preferably who are a little ahead of you.  People who are a lot ahead of you probably won't partner with you, but you don't want someone who is also just starting out.  Find someone who is a couple of steps ahead, but not so far ahead that they won't partner with you.  Real estate investing can be a lonely business.  Sometimes it helps to have someone else along for the ride.  Also, the partner should have a different personality that you.  If you are an optimist, find a pessimist, and vice-versa.  Two optimists will talk themselves into doing bad deals, and two pessimists will never do anything, so make sure you get your opposite personality type.

8.  Build relationships with brokers.  Can't say enough about this.  If you are able to meet a broker, be sure to stay in touch.  Brokers like to deal with their friends.  They are just like everyone else that way.