How can I invest in MF real estate with little money?
I work as an analyst at a large CRE firm. Most people i work with own multiple properties themselves.  My market is growing like wildfire right now, and I would love to be able to buy a multi-unit home while prices are still low, but I do not have the cash. Do I have any options? I am completely willing to manage and lease the property...how can I break through?
[{"id": "cwzcvcf", "text": "Start building connections within the industry to find investment partners who'd bring equity into the deal. Then you can act as a GP and collect a management fee for the work you are doing.", "replies": [{"id": "cwzfyqm", "text": "Exactly.  No money means find a partner that has money and bring other value to the table.", "replies": [], "depth": 2}], "depth": 1}, {"id": "cwzsdff", "text": "What market are you in that multi family prices are low?", "replies": [{"id": "cwzul0s", "text": "Midwest most likely. In my town, you can buy a turn key 2 family for as little as 35k with $900 a month cash flow.", "replies": [{"id": "cx013oy", "text": "What area?", "replies": [{"id": "cx04atl", "text": "Northeast Ohio", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}, {"id": "cx06si0", "text": "Pittsburgh", "replies": [], "depth": 2}], "depth": 1}, {"id": "cwzyhyr", "text": "I started trying to do this on my own a few months ago.  Currently partnering with a company acting as a GP on a deal, and getting a cut for bringing in money in the form of other investors offering limited partnership stakes.  You have to be really careful about how you do this though, there are lots of SEC regulations about who you can and cannot solicit to.\n\nThe strategy we were going to use before this was to find a good investment property, get it under contract, and pitch to investors that we know personally to put up some money for the project.  Depending on the size of the asset, and your network, this could work well.  (again speak to a lawyer through this process). ", "replies": [], "depth": 1}, {"id": "cx00nq1", "text": "Honestly, the CHEAPEST way is to get into one and live in it for at least a year. That will allow you to begin with owner occupied financing and acquire a duplex, triplex, or quad. You would be eligible to use either FHA (3 1/2% down) or if you qualify for VA, a zero down loan. You can feasibly get in with just the down payment. \n\nI've known people who have similar positions as yours and they were able to find partners by being good about bringing great deals to their partners on other properties, but if you have no experience with managing multifamily properties, it'd be less than wise of an investor to sponsor your learning on it! ", "replies": [{"id": "cx06yfr", "text": "I do not have any management experience (though I am close with and work with professionals who manage 200 unit+ buildings that are more than willing to give me advice and mentoring), but I a more than confident I can manage a 2 unit house. How can I go about finding partners?", "replies": [], "depth": 2}], "depth": 1}, {"id": "cx47ie6", "text": "FHA loan", "replies": [], "depth": 1}, {"id": "cxj3bde", "text": "Having little money can be a big impediment.  There are lots of \"no money down\" strategies out there, but these may not be for you.  My sense is that it takes a lot of work to find properties that have enough hair on them that the seller is willing to do seller financing just to get out -- and then you wind up with a deal with hair on it.\n\nIn the beginning, you may want to look into becoming a limited partner in someone else's deal, which will give you access and allow you to learn the process without having to be directly involved in the day-to-day.  You'll be free from having to source, finance, and manage the deals and the properties.  You can just collect a check.  You can do this through syndication deals (i.e., where the sponsor assembles the equity from private investors in return for a fee and/or share of the profits), or you can go to one of the many real estate crowdfunding sites where syndicators list their deals.\n\nIf you really want to break into the field and you are having trouble getting your foot in the door, I actually wrote a post on my blog recently with some tips for breaking in.  Here it is.  http://www.themortarblog.com/maximize-your-credibility-to-get-your-first-multifamily-deal/  Please let me know your thoughts, good or bad.", "replies": [{"id": "cxkdgqg", "text": "Hey thanks for the response, I will read your blog and give you feedback (though not sure what its worth as i am new to all of this).\n\nYou said an option would be becoming a  limited partner, to collect a check with no money down. Why would anyone let me share a return on their investment for free, there's got to be a catch right?", "replies": [{"id": "cxocflx", "text": "I must not have been very clear.  A limited partner is an investor in the deal, so you would be putting money into someone else's deal. Then you could learn and watch what goes on.  It would not be as expensive as trying to buy a property yourself.  ", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}]