Multifamily investing might be very lucrative. You can use it to create stable monthly income or to grow your wealth, however just because you want to be involved in multifamily it does not mean it’s easy to get into. Multifamily has a high-learning-curve and it has high-barriers to entry for a new investor.




It’s not easy to get started. In order to get involved in multifamily you need money, time, and experience. If you have all three, you could contemplate going it alone. If you only have one or two, it’s time to consider partnering with others who have the aspects you do not. Anyone can take advantage of the strong multifamily, but depending on your situation you will need to consider how you want to be involved:




a).- Do you want to be a passive investor?




b).- Do you want to put the deals together?




c).- Do you just want to get a quick fee for finding high-quality deals?




These are just a few of the questions you should ask yourself before jumping in.




 Let’s take a quick look at the three requirements to get involved in multifamily Investing: 




1.   Money – Multifamily requires big chunks of equity to get involved. Gone are the days of “no money down” multifamily. Now, in order to get financing you need to be prepared to bring at least 25% to 30% of the purchase price to put down. As the deal sizes get bigger, this can be a major challenge if you plan on going it on your own. 




2.  Experience – Multifamily investment real estate is a complex business. It requires experience to understand design, development, construction, management, financing, maintenance, managing employees, tenants, accounting, and tax matters just to name a few.




3.  Time – Finding, evaluating, developing, designing, getting permits to build, securing financing, stabilizing and managing the multifamily projects takes a lot of time. From handling employees, move-in’s and move-out’s, maintenance requests, sifting through hundreds of opportunities, it can take a lot of your time.




Here are some of the options: “go it alone”, partner with a qualified developer, investing in a Private Equity Firm or a Mortgage Lending Fund




Have a question?




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