Keys to Getting Started in Multi-Family Property Investing

Keys to Getting Started in Multi-Family Property Investing

Investing in multi-family housing is a long-term investment, but you'll want to make sure you are making safe and sound decisions. There are always risks with investments, but with a solid education and a sound plan, you can find great rewards in multi-family apartment investing.

Find a Mentor

Talk to others involved in multi-family apartment investing. Network and find someone who's willing to give you some guidance. Ask about their successes and failures, too.

Research

You need to know everything from your first tour of the building to your closing terms. Taxes, maintenance, energy bills, demographics, and much more are all items you need to consider. Knowledge is the foundation to your fortune, and you can never know enough about the investment.

• Develop a plan

Make a plan. Prepare your finances. Write down all the questions you want to ask, and note the answers. Make a checklist, and visit and evaluate as many properties as you can. Learn the market you're interested in, and check out other markets as well to make a comparison. You want to avoid expecting too much or too little.

• Know the Market

Plan each visit. Is this a good neighborhood? Talk to locals and business owners. Find other property owners or managers in the area, and ask questions. Learn the demographics, and also check with local law enforcement.

• Formulate Your Strategy

Plan your strategy. What return do you want for your investment? Don't be afraid to make low offers. Often a seller will take a lower bid than he or she is initially asking because they need to sell quickly. Check out the deals and compare them to each other. This also helps you build confidence in your own skills.

Finally, the important thing is to get out there and do it. Educate yourself and make a plan. Following these steps will help you protect your vision of multi-family apartment investing. You won't forget your hard work, but your success is worth the prep time.