Looking for advice getting into the 30+ unit Multifamily realm. Any advice on where to start? 20 y/o investor.
So I’m a young investor who’s looking to get into large multifamily real estate. Any advice, steps to take, or places to look for information? I’m looking more into being the investor but as I go through this subreddit it’s more about getting jobs working for large firms to get experience. Is this a good route to take or should I just keep building my pockets up for a few more years and waiting. I’m looking to start with a $10M, 30-40 unit and build up from there. Honestly I don’t have any experience in this field and my only exposure is Grant Cardone. So any books, free material, courses, videos that I can watch to get a grasp on the processes, requirements, LLC planning or anything of that nature. Thank you.
[{"id": "i7rb783", "text": "Do you have $10M to invest?\n\nBtw, I\u2019m sincerely asking. I have a great deal in SoCal if so.", "replies": [{"id": "i7rbjdj", "text": "Yeah, the financing is the main key, here. I don't know a lot of 20 year olds with access to $2.5-3M (25-30% down on 10 million). \n\nWhat's the situation? Are you sitting on cash, or are you going to recruit 30 friends?", "replies": [{"id": "i7rbxbo", "text": "Think source of funds is coming from the crypto portfolio OP started 20 days ago.", "replies": [], "depth": 3}, {"id": "i7rck0d", "text": "No. Been in forex market for a few years so sitting on a little less than $1M. not looking to hop in right now. Just wanted to know about any resources to start learning", "replies": [{"id": "ijkfbsy", "text": "Why tf was this down voted?", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}, {"id": "i7rl07u", "text": "I do if the project is right and the metrics make sense.", "replies": [], "depth": 2}, {"id": "i7rl5cl", "text": "Where in socal?", "replies": [{"id": "i7rli50", "text": "Orange County", "replies": [], "depth": 3}], "depth": 2}, {"id": "i7s3nf8", "text": "DM sent.", "replies": [], "depth": 2}, {"id": "i7t8ccu", "text": "Im actually interested can i pm you?", "replies": [{"id": "i7t98n9", "text": "Of course.", "replies": [], "depth": 3}], "depth": 2}, {"id": "i7tkvpp", "text": "Do you have anything in HTX?", "replies": [], "depth": 2}, {"id": "i7uise2", "text": "Can you pm ur deal plz.", "replies": [{"id": "i7und4z", "text": "Why.", "replies": [{"id": "i7uvs3n", "text": "You said you had a great deal in SoCal, and I have a great repeat client in an exchange looking to buy MF in the 10-20mm range. Seeing if it could be a fit. \nNo worries if you don\u2019t want to share.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "i7rc57g", "text": "So, to summarize, you have no real estate experience, and are looking to start with a 10 million dollar property.\n\n\nQuestion - What are the steps you need to take to purchase this property?", "replies": [{"id": "i7rcfz5", "text": "that\u2019s the question Im asking. What are the steps or the process to getting started. I have no experience", "replies": [{"id": "i7s92ka", "text": "Buy a house.  Fix it up. Sell it.\n\nThat will give you 30% of the experience you need to buy a multi.\n\nIf however, you *desperately* want the other 70%, go for that multi unit as your very first purchase.", "replies": [], "depth": 3}, {"id": "i7su8rw", "text": "People are probably down voting cuz it seems you want us to do your homework for you, which is def the impression. Also some of us think Cardone is a con man. But thats besides the point.  Go to the /realestateinvesting subreddit, read some of the books they recommend, analyze some deals in your target area and then come back.", "replies": [{"id": "i7svj15", "text": "Thank you!", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}, {"id": "i7vc1sk", "text": "That Russian oligarch moneys got to go somewhere\u2026", "replies": [], "depth": 2}], "depth": 1}, {"id": "i7rddcq", "text": "I'm 27 and own 15 units (closing on a 22 unit this week). \n\nBanks wouldn't lend that amount of money to someone with no experience unless you partner. It's not impossible, but it's going to be difficult. Brokers wouldn't take you seriously because you haven't closed on anything. \n\nI'd start small, buy a 2-4 unit where you live and live in one unit and rent out the other. Get your feet wet and build up your real estate resume. \n\nBiggerpockets is a good start, some facebook groups too. If you have extra cash, considering LP'ing in a syndication", "replies": [{"id": "i7resva", "text": "okay! thank you! that was helpful. If you don\u2019t mind me asking more questions, what\u2019s the scaling place that you\u2019ve taken? what age did you start? any problem with brokers? any partner or syndication experience?", "replies": [{"id": "i7rmpgv", "text": "Yeah sure man, happy to chat. I was 25 when I bought my first property. Started out with a single family, then bought an 8 unit, then a 14 unit, sold the 8 unit. Now buying the 22 unit. \n\nI have 1 partner that I'm buying these properties with and syndicating it with family funds. I charge a 2% management fee and we take 20% of carry. We do everything with JV agreements with our lawyer. \n\nFor future deals, I'll probably syndicate as my personal capital is running low.", "replies": [{"id": "i7s8cjn", "text": "What market?", "replies": [{"id": "i7sq36w", "text": "Midwest", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}, {"id": "i7sywkj", "text": "&gt;Biggerpockets \n\nNever heard of this before.  Just clicked on the link.  You just taught an old dog a new trick!", "replies": [{"id": "i7uq3s9", "text": "Ur about to learn a lot more.  Tune into their podcasts, very well done and easy to follow along.  Cheers", "replies": [{"id": "i7v8y76", "text": "Gracias!", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "i7ri424", "text": "Hahahahahahahaha", "replies": [], "depth": 1}, {"id": "i7ri5p9", "text": "This is a joke, right?", "replies": [{"id": "i7s1iz3", "text": "Who knows but you would be surprised the money some young people are sitting on. I came up in the domain name investing space (which has a 1/2 dozen different facets). I had dozens (actually hundreds) of friends age 20-30 sitting with $5-50 million. They were smart and could tackle any  business. One became one of Indians youngest billionaires. I first met him when he was around 21 and we did some deal together. It is how I got into real estate myself.    \n\nI realize most people that age don\u2019t have this going on but they exist and many of them eventually diversify into other types of investments.", "replies": [{"id": "i7tvstp", "text": "Ah yes, I too had hundreds of millionaire friends growing up.  \n\n\n/s", "replies": [{"id": "i7uch5x", "text": "Right place at right time was all. Started buying domain names when nobody believed in them and those of Us that did the same pretty much all went to the same conferences and they were small so you know like all 500 ish who were doing the same. I grew up on a farm in the middle of where so kinda fell into this by accident.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}, {"id": "i7s1ues", "text": "https://en.wikipedia.org/wiki/Divyank_Turakhia", "replies": [], "depth": 2}], "depth": 1}, {"id": "i7rkiy3", "text": "First of all, forget everything that Grant Cardone has told you, the guy is a farce. Recommend reading The Real Estate Game by Poorvu and Crushing It in Apartments and Commercial Real Estate by Brian Murray. Would also join your local real estate investors chapter or Rotary Club if you don\u2019t have one. IMO, the best way to learn is through experience and it\u2019s not really a good idea to start off with what could be a very costly $10m failure. Start with a SFH or a 3-5 unit. 30-40 units is way too many for someone just starting. Make sure that you\u2019re investing in an area with more lenient tenant protections (I.e. not SF, NYC, LA). When deciding on a market to invest in you want to look for rent growth and strong demographics (population growth, friendly business environments, etc.). Once you decide on a market it\u2019s all about seeing as many deals as you can. Decide what type of returns you\u2019re looking for (not really familiar with what multifamily investors are looking to get but you could probably find this info on Bigger Pockets or some funds website) and evaluate deals based on that metric. I\u2019m not going to go into depth on that topic because you need to learn by doing. A lot of real estate is Googling, and asking other people in real estate questions. Networking is important, especially with brokers and lenders. Think I\u2019ve covered most of the bases but you can never get enough experience in RE.", "replies": [], "depth": 1}, {"id": "i7s0mdq", "text": "Be careful with grants philosophies . He\u2019s a pretty extreme character when it comes to investing in property. This guy and others like him will have u thinking to invest in the lavish full blown multi million dollar deals. Start small.", "replies": [{"id": "i7wjhzc", "text": "Thank you for the advice!", "replies": [], "depth": 2}], "depth": 1}, {"id": "i7sjg7q", "text": "I can help you sir dawarabbas06600@gmail.com", "replies": [], "depth": 1}, {"id": "i7st4zy", "text": "I am 41. I syndicate. Started with single family and now do 100 unit + properties with 2 partners. I am doing what you want to do. More than happy to share my experience so far and the hurdles. I can also point you to others who are your age and getting in on larger deals and having great success. A conversation would be the best next step if you\u2019re serious. I\u2019m not selling anything.", "replies": [{"id": "i7uglm6", "text": "I have done a few infill development deals and am interested in MF syndication. May I dm you?", "replies": [], "depth": 2}], "depth": 1}, {"id": "i7t59u5", "text": "Don\u2019t listen to grant pretty sure he\u2019s a fraud if he was making great money off his deals he wouldn\u2019t bother selling courses and his numbers in his video don\u2019t add up usually but you probably need to start small maybe with a duplex or a mobile home park but the hardest thing you\u2019ll run into is finding deals without a negative spread rn and getting financing you will need at least 30% down for a mult- over 4 units deal you could use an fha your first one and house hack", "replies": [], "depth": 1}, {"id": "i7tqg7f", "text": "Step one.  Realize that Grant Cardone is a joke.", "replies": [], "depth": 1}, {"id": "i7uadzh", "text": "House hack a 4 plex with fha funding.", "replies": [], "depth": 1}, {"id": "i7yhc5l", "text": "We are syndicators and I would suggest starting small. Do a deal yourself (with your own money and no passive investors) prior to raising money. Once you start growing; you can partner with more experienced partners and start raising money but there is a lot more to it than just raising the down payment.", "replies": [], "depth": 1}, {"id": "i9vtlsp", "text": "I\u2019m looking to bang the early 2000\u2019s version of Jessica Simpson. Got a time machine for me?\n\nJ/C what in the actual fuck is up w this subreddit? Dude you\u2019re 20 w no money. No property. No experience. Nothing. And you want to start at 10 mill? \n\nEven at 30 units, are you going to manage it? Do you even know how? Start small my guy. Go find a shitty duplex in the hood and call the owner and offer him a land contract or something since you have zero cash. \n\nStart small and baby steps my guy and grant cardone is a liar - don\u2019t take what he says to heart at face value", "replies": [], "depth": 1}]