The Rookie’s Ultimate Guide to Multifamily Real Estate Investing
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- čas přidán 8. 06. 2024
- Episode #346
Multifamily real estate investing can be scary to a new investor. After all, buying more units requires more money, more resources, and a larger team. But today’s guest is here to show you that multifamily investing is not nearly as intimidating as it may seem and why NOW is the perfect time to get started!
Welcome back to the "Real Estate Rookie" podcast! In this episode, Andrew Cushman delivers a masterclass in multifamily real estate. Andrew got his start flipping houses for profit, only to find that he was missing out on the consistent cash flow and long-term appreciation of buy and hold properties. So, he dived headfirst into the world of multifamily investing. Today, he shares how he landed his first multifamily deal-the good, the bad, and the ugly.
If you’ve ever considered buying multifamily properties, Andrew explains why you should start now. He also offers some essential tips for investing in today’s market and provides a wealth of resources to help you define your perfect buy box. Finally, you’re going to need the right people around you to tackle multifamily real estate. Andrew shows you how to build your team and how to pitch a long-term buy and hold property to potential investors!
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Grab Your Copy of David Greene’s Book, “Long-Distance Real Estate Investing”:
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Is This Deal Worth My Time? The 6 Crucial Steps to Vet a Multifamily Deal w/ Andrew Cushman:
www.biggerpockets.com/blog/bi...
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The 8 Steps That Will Stop You From Getting Burnt on Multifamily Deals w/ Andrew Cushman:
www.biggerpockets.com/blog/re...
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Why Self-Storage Beats Rental Properties w/ AJ Osborne:
www.biggerpockets.com/blog/ro...
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Resources to Help You Build Your Buy Box:
JCHS: www.jchs.harvard.edu/son-2023...
ESRI: www.esri.com/en-us/home
FEMA: www.fema.gov/flood-maps
BLS: www.bls.gov/
Rich Blocks Poor Blocks: www.richblockspoorblocks.com/
Bright Investor: brightinvestor.com/
Neighborhood Scout: www.neighborhoodscout.com/
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Connect with Andrew:
BiggerPockets: www.biggerpockets.com/users/a...
LinkedIn: / andrew-cushman-959471a
Vantage Point Acquisitions: www.vpacq.com/
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Connect with Ashley and Tony on BiggerPockets:
Ashley: www.biggerpockets.com/users/e...
Tony: www.biggerpockets.com/users/t...
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Connect with Ashley and Tony on Instagram:
Ashley: @wealthfromrentals or / wealthfromrentals
Tony: @tonyjrobinson or / tonyjrobinson
Show notes at: link.chtbl.com/Rookie
00:00 Intro
01:50 Should You Buy Multifamily NOW?
04:14 COSTLY Multifamily Investing Mistakes
07:55 Analyzing Deals in Today’s Market
11:22 Multifamily Deals Gone Wrong
24:53 How to Fund Your First Deal
32:00 Building Your Buy Box
41:04 Assembling a High-Performing Team
48:49 CRUCIAL Multifamily Buying Tips
56:03 Connect with Andrew!
Great video, but I don't recommend this as a blueprint for any rookie. I was going to jump into a 4 family for my first property and I'm extremely glad I started small with a single family home instead. Stay local, do not partner outside of a spouse or very close trustworthy relative/friend. Self manage, self fund or try to get bank funding FIRST. The reasoning is that it doesn't make sense to try to be a real estate mogul on your first property with no experience. You will hit some snags and unexpected issues that will hopefully help you learn. Keep debt and purchase price low in the beginning because it's better to make early mistakes with low exposure versus the opposite. Remember, no one else will care about your investment more than you so be close to it and manage it yourself FIRST before you outsource all the work. Just my $0.02.
This comment made more sense than this video😅
You should make a video. I would definitely watch it. 👍
@@joser6703 The channel is coming...I'll let you know 😁
Your best episode right here.
Thank you for resources.
Information gold. Thank you!
Great episode
Hearing about the significance of referrals in building a reliable team for real estate investments really resonated with me. Networking and recommendations are the keys to real estate success!
Great information at 32:27
We've been working with other investors for quite a while and this is some great advice, especially on how to fund your first deal. I personally prefer the seller financing route, but the point is to just get started. Great video, can't wait to see more
Buy and hold is how you create wealth.
Wealth is created through appreciation, not only cash flow
@@JohnDoeX1966hence, buy and HODL….
Don't use your own cash for investing, utilize banks and investors, use your cash to leverage getting loans so you always have a nest egg of liquidity available if and when a emergency occurs
@@UNDaDog757 true
thanks
It is difficult to make exact projections for the housing market as it is still unclear how quickly or to what degree the Federal Reserve will reduce inflation and borrowing costs without having a substantial negative impact on demand from consumers for anything from houses to cars.
I recently sold my home in the Boca Grande area and am considering investing a lump sum into the stock market before the anticipated rebound, couple of folks have been discussing a potential rally, speculating on which stocks may experience substantial growth during the festive season. Do you have any insight into which stocks these might be?
During severe recessions, think about moving from real estate to stocks, but approach the market volatility cautiously. While not financial advice, investing during these times could be strategic, and seeking the guidance of a financial expert is worth considering.
Currently, the best market strategy is to work with a credible investing coach. Since a while ago, I've been in touch with a coach, mostly because I lack the depth of understanding and mental toughness to deal with the ongoing market conditions. You lack the information necessary to succeed in a competitive market, not because you're doing anything wrong, but rather because of your lack of experience.
@@ThomasChai05Can you suggest the financial guide you've been using? It appears you've had success with their guidance.
CAMILLE ALICIA GARCIA maintains an online presence. Just make a simple search for her name online.
There are a number of maps on the JCHS site. Which one specifically is being referred to?
Macon, GA! Yikes, I know he made a mistake when he mentioned my hometown.
Hey @RealEstateRookie, do you have an episode that talks about individuals under visa (e.g. H1B visa) and how they could invest in multihouse family houses?
As a fan of this page, wanted to let you know a 92-unit multi-family story isn't too accessible for 'rookies' 😅. Still love the content, just my two cents.
Why do you feel a 92 unit is beyond a rookies ability to access?
My sentiments exactly
@@anthonyj.4756exactly, I acquired an iconic Dallas skyline apartment tower as my first deal with no money down
Even though i got a bad credit i sill have faith to get me some multifamily properties! I'm learning the process so thanks for the information, you got a new subscriber here 100%
Credit of 840 not sure where to get financing for a multi family comercial property dscr loan
My bank does them but they do not market them. You have to ask around and call lenders if they offer it. Alot of people think theyre investors and its risky for the banks@edgalarza2657
Credit score is just a snapshot in time. Can change fairly quickly! Keep at it!
Soon I will be able to buy my first property, I am very close
How so? I am looking for ways to help myself earn more, maybe learn a skill
The dark blue on the Harvard map is negative population. The red is positive
Noticed this as well
Good catch, it looks like they recently flipped it. Thanks for checking and posting! -Andrew
Great video! Buy and hold is a great way to start. Then you can begin to develop after a few projects. That's how I started.
I can't find any deals for
apartments
No No No. No one should invest in multifamily properties right now. Ill take care of it. Check back in a few years 😆
Right!!
😂 bingo!
Hahahahaha i love this 😂
P😊
Okay!
Hi I’m newer investor been investing in Realestate part time for about 6 years and have a portfolio of 5 houses and 1 commercial automotive property with 12 units total.
I Have a decent 18unit apartment building I’m looking at off market and need a private money lender to help with down payment and rehab. Any recommendations would be much appreciated.
Look up jay Conner private money authority and I’m new to real estate but research a lot and u can raise your own private money once you look into what’s a self directed IRA where the it’s approve a couple of companies to take your IRA account and invest in real estate. That’s how these company are raising money to invest and look into Quest trust that’s one I know that have all the private lenders and make your program based it off Traditional investing as CDs ira and offer your private lenders a promissory note , name additional on insurance , name on title , and terms of payment and only invest 75% ARV and you can do 8-10% why the average account we can say is 5.5 interest back and your offering 8-10% back by real estate. As Jay Conner say Get the money first then invest and we don’t have to get on our hands and knees at the bank to get funding when I can raise it yourself hopefully this info can help alot of ppl
All hard money lenders do is raise money the same way and just lend it out at a higher interest so the goal is to find out how they get their money
"Let's use some smaller numbers here. Let's say you need $500k..." Yea thats not a small number for someone trying to get started.
Correct
Red on map is where to invest
Good catch was thinking same thing
How do you not know your numbers?
👍
43 looking to invest in Multifamily RE for the first time. Bought my first home 10 years ago. Will be using a HELOC of $150k to get started with some liquid capital if needed. I am also a solo owner operator business owner with a spouse who is full-time employed. We both have 800+ credit scores. I have only been in my business for 6 months, it has good cash flow and was an established business. I'm not sure what size of an investment property we should be looking at. We are on the East Coast (VA) I read and read but still do not know where or what to start with.
Hey man, I’m a real estate agent in the Cincinnati area. There is plenty of multi family over here although I’m not sure what you’re looking for. Idk if you’re looking for turnkey, value add, etc. If you’d be interested in seeing what’s out here, let me know!
Can you invest within a 401k?
A self directed 401k yea
If you offer a much lower price to cover the mortgage. They dont accept the offer
What’s up guys! How much did you have in your 401k when you cashed out?
Look up a ROBS transaction or self directed 401k
I wish Andrew had explained how he changed the area since the police was no help
He sold lol
That inhale... ugh
LOL I agree!
Maybe asthma.
He is inhaling way to hard
I wish he would drink some water because that spitting and sniffing noise is very distracting! I had to use close caption to get through this video !
Amazing video, you need to live the experience. So you can see that this info is the path to do it right but we are humans so we will do it alone and pay money for expensive mistakes or just taking the long-wrong way to do something. We have a mastermind group we get together to analyze deals In Miami by the airport contact me if you like to come and share with the group.
He makes sure he stays out of Blue States.