Real Estate is an incredible investment option in general. It allows the investor to generate ongoing passive income if done properly. Single-family and multifamily are two of the most common types of residential real estate that you can invest.
Single-family properties, as the name implies, are residential buildings that are relatively and one unit for rent. Multifamily properties are apartment complexes or buildings with several rentable spaces. On the other hand, if you are looking for more opportunities and better income, then multifamily real estate property is something to consider.
Just like any investment endeavour, if you are already accustomed to single-family property investments, jumping to a new opportunity like multifamily property investment can be nerve-wracking and mind-boggling. Here are the step-by-step process and materials for you to have a smooth transition from single-family to multifamily real estate investment.
Be Informed and Get the Facts First
Since this is a new venture, educating yourself about multifamily real estate is very important. It will help you know the ins/out, terms, and lingos of the industry. Spend hours and hours to help you widen your knowledge on how to acquire and invest or manage multifamily property is very effective.
Multi-Family Millions by David Lindahl, a highly recommended material to help you get started. Learning from real estate forums like BiggerPockets forum is very useful as you can be able to read different ideas and viewpoints of the forumers. Another impressive resource material to look into is the one from Grand Cardone in which you will be able to learn more about analyzing, finding deals, what to look for and red flags to avoid.
Determine Your Buying Criteria
Make sure to know first what type of property you wish to purchase by determining the criteria like the type of property, and your market. Also, you can focus on making a good connection between the broker or doing marketing to achieve what you want to obtain in the future. For instance, your buying criteria is apartments with between 75-200 units and built between 1950-1980 with market rents range 650-900. Having the buying criteria makes it easier for you to focus on other important like being able to focus on criteria you prefer.
How are you going to manage the property you just purchased? It is one vital question that you have to ask yourself first before inking the deal because you need to make sure that the property is well managed. You’ll find it difficult to sell a multifamily real estate property if it’s poorly operated. Self-manage is okay but be sure that you have the right systems in place that can handle the property well.
Leap of Faith
There might be some challenges and obstacles that you may encounter at the early phase of the transition. To succeed, you need to have the drive and positive mindset that you can make it. The obstacles that you might encounter are not finding deals through networking with brokers and not coming close to making them work. Deciding to go direct-to-owner will allow you to take more control.
Finally, transitioning from single-family to multifamily is not an easy task, but as long as you have the right information and mindset, everything will turn as what you have planned. You’ll surely realize that it is not as hard as you think, and it is more profitable than other types of real estate investment.
I’m giving away a copy of my book “From Zero to 400 Units”. Grab your FREE copy here. Also, I am hosting an Intensive Real Estate Investing Training. Will Take You By The Hand To Show You Exactly How This Works— Absolutely FREE! Book your COMPLIMENTARY Seat here.I am putting up an elite group for real estate entrepreneurs like yourself. If you wish to be part of the “The Real Estate Mastermind Group” take the free self-assessment test to see fit.