Who are the typical buyers for small multifamily?
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[{"id": "fho1oop", "text": "That is still individual investors or maybe a couple of individuals pitching in and forming an LLC.\n\nI guess you could form a REIT for that amount, but why? I can\u2019t imagine that actual institutional investors would bother with something so small, relatively.", "replies": [], "depth": 1}, {"id": "fhp7uz1", "text": "Small to Mid cap private equity firms, family offices", "replies": [], "depth": 1}, {"id": "fhpbxpw", "text": "Small enough for single RE investors or flippers with more money than the average joe, or biz owners with extra liquidity, or a first time syndicator with LPs. Not even close for a reit.", "replies": [], "depth": 1}, {"id": "fhpi1yo", "text": "I've seen reits in harlem trading properties at 15-20mm but its very unusual.  most buyers of multifamily residential in that range are guys like myself that either typically use their own$ or sometimes pool $ from friends/family/investors.  we are small potatoes in comparison to the big shops.", "replies": [], "depth": 1}, {"id": "fhpr60i", "text": "I own some of these types of buildings with my husband. We are just normal people except I\u2019m really good at money stuff. We are both active duty military officers and are stationed in an area where we get a hefty housing allowance. This allows us to earn about $300,000 a year, $60,000 of which is tax free. We live in a townhouse, drive Priuses and send our kids to public school. I feel like I have everything I want but we still build up cash fairly quickly. \n\nIm actually leaving MFs soon and moving on to commercial.", "replies": [{"id": "fhxdd6f", "text": "What's the onus for the change to commercial?", "replies": [{"id": "fi6irz4", "text": "It had gotten to be too much work to keep on top of the financials. I have professional managers but the program they use (Entrata) has confusing reports and I have a hard time knowing what return I\u2019m getting. It\u2019s gotten unwieldy for me. So I\u2019m going to get a medical building instead. The tenant is responsible for most things so it\u2019ll be easier to wrap my brain around income and expenses. I have 4 young kids and a full time job- I just don\u2019t have time to devote right now.", "replies": [{"id": "fi8d3j5", "text": "Got it. I'm actually working on some things to potentially streamline the analysis of potential acquisitions. Mind if I PM you about it?", "replies": [{"id": "fj6sf99", "text": "Sure no problem!", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fhpy01x", "text": "I own many of these size buildings. Mostly single asset entities created by a few investors or developers.", "replies": [], "depth": 1}, {"id": "fhqixnk", "text": "I'm in the market for buildings of this scale at the moment.  Individual investor (well, me + spouse), currently 20ish doors of 2-4 unit buildings, looking to go larger (15-30 units most likely) for our next acquisition.  Targeting 1.5-2m purchase price.  Hard to find buildings of this scale that trade hands in the areas we invest in.", "replies": [], "depth": 1}, {"id": "fhqjx9q", "text": "Absolutely not for a REIT. Those are private guys or syndicators.", "replies": [], "depth": 1}, {"id": "fhuthbb", "text": "REITs start biting at 8-figures. What I\u2019ve seen investors do is build up a portfolio of properties, package them up, then pursue REITs. It\u2019s been a successful strategy for the most part.", "replies": [], "depth": 1}, {"id": "fhxd9jg", "text": "The small multifamily investor scene is *absolutely booming* right now, increasingly made up of people who want more flexibility than a W2 job and are casting their hopes on multifamily investing. Here's how to find the active buyers:\n\n1. There's a growing network of networks catalyzing around **podcasts**. Check out some of these:\n   1. [Wheelbarrow Profits](https://jakeandgino.com/category/multifamily-real-estate-investing-podcasts/wheelbarrow-profits-podcast/) (Jake &amp; Gino)\n   2. [Wealth Through Real Estate Investing Podcast](https://podcasts.apple.com/us/podcast/wealth-through-real-estate-investing/id1457606006) (Dwaine Clark)\n   3. [The Real Estate Foundation Podcast](https://www.yarusiholdings.com/podcast/) (Jason and Pili Yarusi)\n   4. [Multifamily Investing Academy](https://www.multifamilyinvestingacademy.com/blog) (Charles Dobens)\n   5. [Multifamily &amp; More](https://www.youtube.com/watch?v=QEmjSjWFE2s&amp;t=1s) (Jamie Gruber)\n2. Local events/**meetups** \\- check out [Meetup.com](https://Meetup.com), or [BiggerPockets](https://www.biggerpockets.com/forums/521-events-and-happenings)\n3. Larger **conferences** \\- some of the same hosts as the Podcasts above do larger events once/twice a year to bring in their entire communities. Also see Rod Khleif in that category.\n4. **Facebook** groups! Yes, facebook groups. All the above podcasters have surprisingly active communities on Facebook, but then there's also just real estate investing groups, buy/sell groups for listings, etc.", "replies": [], "depth": 1}, {"id": "fi0q0ra", "text": "They won\u2019t be unless in a larger portfolio. This is because of the way REITs work. The acquisitions guy/team for REITS are paid salary and are expected to invest a certain amount of capital (almost always a very large amount). The purchase of small properties often takes as much work/time in the due-diligence as larger properties. Because of this they only look at much larger deal that fit their investment criteria. \n\nFor example if you were the acquisitions guy on salary and have to buy a billion $ in properties would you spend all your time picking up little 1-2million dollar deals and doing all of the DD work for each one? No you would buy the large deals/portfolios that allow you to invest the billion quickly and efficiently. Not only that managing many small properties spread out is much less cost effective then a few very large properties.\n\nAlso REITS are a pain in the a$$ to sell to. Wealthy private investors are better if you\u2019re a broker unless you like getting bogged down in bureaucracy", "replies": [], "depth": 1}]