Hello everyone,I came across a deal for ~50 units of small warehouses (each 700-800 sq ft) and leases are around 1 year each. 

How can an investor best exploit another set of investors who will likely lose their shirt on bad deals of the past?

What made you interested in investing in this type of deal?

He also states that if you do this the right way, you will never have to use any of your own money, as once you get your first deal, you can just use the money from that deal and then reinvest that money into your next deal, etc.  

Definitely be VERY diligent with your underwriting on a deal like this.

I would like to find multi family (5+ units) to invest in i just dont know how to find the deal or structure it. 

That's no big deal if it's just a room being used as a bedroom, but imagine ripping out that nice kitchen and bathroom you put in!

This is the most complicated piece because you are essentially the mortgage originator (which might run into licensing concerns depending on how many times you do this and your state), and you need to make sure the person who is buying is a good borrower.3) close with a title company or lawyer (state dependent) who knows how to deal with this type of transaction4) set up an account with a servicer to collect the money from the borrower (not required, but highly recommended from note buyers)5) collect payments

In the meantime work on building a downpayment and do an owner occupied deal in the meantime (that's how I had scratched my itch to "do more".) 

Not sure on all the particulars of your deal but that seems high.