Are you planning to invest in multifamily property? If your dream is to become a successful multifamily investor, there are several tips that can help you get started.
Try Single-Family Deals First
Even though there are investors jumping straight into investing in multifamily properties, it would be a wonderful idea to test the waters first. Once you invest in single-family properties, you get a chance to put your psychology to test:
- Make offers
- Invest your own money, and money of others
- Make quick decisions
- Negotiate with contractors and sellers
- Work with partners
- Take leadership
- Accept a degree of risk
If you cringe with the mere thought of doing these things above, it will be wiser for you to start with smaller investment properties first.
Choose a Market
It is the perfect way of breaking through analysis paralysis. You might check first at least 5 to 6 markets before settling on one. Then, you can drill down to submarket level. What are the best neighborhoods? Which gives you the highest possibility of success?
You will never be able to close the deal if you just sit in front of your TV or computer, or other electronics? For a successful multifamily investment, you should start to do these things:
- Look at listings, and tour properties
- Drive around neighborhoods
- Talk to fellow investors, and line your funds up
- Interview commercial breakers
- Build your own real estate investing team
If you don’t go out to connect and talk with potential partners, professionals, management companies, as well as other industry professionals, you will never be able to find a possible investment property, or form your team.
Network, Network, Network
Everyone knows someone who has become successful in residential real estate investment. Many of these investors will be more than happy to discuss with you if you pick up the phone and call them. You can ask your family, friends, teachers, and other people you know. Start networking with those who already experienced investing in residential real estate. It is a great way to find potential mentors.
Just a word of warning, though: real estate comes in various asset classes. If you are committed to making investments in multifamily properties, never be tempted by the rest of the asset classes like retail or self-storage. Choose your asset class, and be an expert.
Investing in multifamily properties is not a hobby, and you will never become successful overnight. How much time will you be able to allot every day to add to your knowledge, and be on the phone for your networking? Can you spend around 45 minutes to 1 hour everyday working on your career on real estate investing?
Doing an intense activity for 2 hours every 2 weeks will never let you cut it. Time flies. If you can commit yourself to a daily regular schedule then stick with it, then, you have higher chances to succeed in this venture.