There are many ways to getting started on building your real estate career. Whether it’s flipping houses, buying land, or wholesaling, there is something you will like and feel comfortable doing.There are so many niches and asset classes to choose from.
At our live events, all people are interested in building a portfolio in multifamily. Some of them, however, when they hear the word “multifamily”, they get a little scared. They convince themselves that their lack of experience or resources would prevent them from getting into multifamily. The truth is, multifamily is no easier or difficult than doing any of the niches I just mentioned. I would even say that multifamily investing is one of the easiest ways for new investors to get into real estate.
Perhaps it’s because of the intimidating name, or the fact that there are rules and laws around landlording, but new investors should consider investing in multifamily deals to grow their net worth.
I’m not big on starting small, and by small I mean less than 16 units, but if you want to start with a fourplex, you can live in one unit and rent the other 3 units to cover the mortgage while still getting some additional income. If you live in a very active market, you could even live off the three other units while the mortgage gets paid down by the rents. You only have one roof, one HVAC, one yard and one foundation to worry about. All this while collecting multiple rents. When you do it correctly, you can reduce the amount of expected maintenance on a property.
For many people starting out, new investors are scared of multifamily for one simple reason: the price of entry. In most cases, a multifamily deal in good condition and in a good area will be much more than a single family home. And while it may be enough to scare some investors off, many people don’t understand that it is actually easier to get loans on multifamily deals. This is because lenders see multifamily as a cash producing asset. A cash flowing business.
If you want to scale into larger units, you can become successful in real estate by using mentorship, partnering with someone with experience, and aligning with a property management company.
Anyway, are you looking to get started in multifamily? What are you doing today to get rolling? Are you going to meetups to network with other multifamily people? Let me know in the comments. I’d love to hear from you.
If you are getting started in multifamily, check out the Bulletproof Cashflow podcast on iTunes or Stitcher, and subscribe to our YouTube channel. We are working on getting new content out all the time to help you build your success.