How to start investing in multifamily real estate? That's a great question
because there are a few steps that I'm going to share with you but it's a great
question and I can't wait. Let's go. In this video, I'm going to share with you the
best way to start investing in multifamily real estate. And I'm going to
give you some great tips on how to do it with almost no money. Like, okay, I'm not
talking thousands of dollars. I'm not even talking a thousand dollars. I'm
really going to give you some great ways to get started in multifamily. Not just one
door, okay? As many people want like, "What is multifamily?" We're not just
talking about 1 house or 2 houses. We're talking about a property that has
multiple doors. I'm going to show you how to do that again with not even thousands.
With just hundreds of dollars. Number 2, I'm going to tell you where to find
multifamily deals. Because that is so important. So, where they're located? Where
you should be looking and where the best places for multifamily are? And then
lastly, I'm going to tell you how to avoid a money pit. How to avoid those big old
properties that some unsuspecting and newbie
investor is there. They're trying to pawn off on you. I'm going to tell you how to
avoid those money pits and how to not get taken advantage of when we're in the
multifamily around. Okay. So, let's get into it. So, let's first talk about what
multifamily is because before I can even tell you all of that other stuff, I got
to kind of break this down a little bit. Because there's 2 definitions. A
multi-family house is just a house with more than one unit. So, we could be
talking about 2 to 4 unit. A duplex, a triplex, a quadruplex. Okay? So, a 4
unit. Those are still considered single-family residences, okay? So, one to
4 units, even a duplex it's a multi-family. You know, the 2 to
4 is a multi-family but it's also considered residential real
estate. So, for the purpose of financing, I really guys I need you guys to
understand that 1 to 4 units is one thing and then 5 units and up is
another category of multifamily. So, there's 2 categories
in multifamily. And I'm going to teach you on both of them. But I had to kind of
give you that. So, 2 to 4 units and then 5+ units. Whereas the basics
there. Okay. So, now that we have the definition and we know that there's a
difference between you know 2 to 4 units versus 5+ units. Like I said,
2 to 4 units is going to have one set of financing that's usually just
residential real estate. You can use regular mortgage brokers. They're
probably going to be able to lend on those a lot easier than going to a
commercial bank which is what you'll have to use if you get 5 or more
units. So, just giving you the difference there and letting you know there's 2
different types of financing. Both are actually okay to obtain. I'll walk you
through that. But there is a difference there. So now, let's talk about where to
find multi-units. So, we're just talking about any multi-unit. And most of your
multi-units are not going to be in the suburbs. They're not going to be on the
outskirts of cities and things like that. Most of your multi-families are going to
be near the city or near the city's core or right outside of the city, okay? And
the reason that this is the area that you want to look at multi families for
is because a lot of times, people are not still building a lot of duplexes and
triplexes. The coding has changed. The zoning has changed. So, a lot of times,
there's not like a lot of newer properties available for you to buy. And
properties that are closer to the city, closer to the urban core where people
live there. Higher populations. So, there's a lot more multi-families. So, you
really want to stay away from the suburbs and start looking at your city,
around the urban areas and being in those areas to look for properties. The
next thing and the next reason why that's important is because those areas
too also usually have land that is very valuable. When you're near the city not
in the suburbs, the land where the multi-unit is is usually very valuable.
And so, that's why they put multiple units on that land because that land was
very valuable. So, that's another reason why we usually want multi units closer
to the city and not way out in the suburbs.
The next place that you want to look and start searching for properties and
finding ideal places for multi families are going to be around schools like
major universities and things like that. Major hospitals and
major attractions, okay? Most people that are looking for apartment living or
multifamily units or to rent properties are usually looking for things what?
Close to work, close to public transportation, close to
events and things like that. So again, this is why we're going to be
staying away from the suburbs totally when we're talking about multifamily. We
really want to be closer to where the main things are in your city or in your
locality because those are gonna be command the highest amount of rent and
they're going to be very valuable. You're going to make a lot of money.
Okay? So, additionally, like I said: On the suburbs, there's not many duplexes and
triplexes and stuff like that. So, it's not really lots to find out in the
suburbs. So, that's the same place that you want to avoid is don't go out into
the suburbs. Wherever there are multi families at, that's probably the area
near schools and hospitals and things like that. But if you find these
properties and they're not really near anything, it's probably not a good
investment. The next thing we're talking about investing in multifamily is like I
said, we have the 2 to 4 units and then we have the 5+ units. And in
any case you need to decide which one are you going to go for? Now, I'm going to tell
you a quick story. So, when I first got started in real estate investing, I
started like I told you. I was working, I was a full-time mom. I got 5 kids. I
worked. And I did real estate on the side. And I was wholesaling when I first got
started. Then I graduated to the fixing and flipping. And again, I was just doing
single houses. And then I got into the multifamily. And what I'm going to tell you
is you do not have to start with one house, okay? ou do not have to start with
single family residences. You really can start with duplexes and triplexes and
quadruplexes, 4 units. Because that way, you can make more
profit, okay? The more doors you have, the more profitable. So, multifamily is
definitely something that you want to be looking into as a real estate investor.
And you really want to start to think about, "Is this what I'm going to do in
this thing?" Because it is very profitable. But you probably don't want to go with
those 5+ units if you haven't done this before.
Okay? The financing is different. The lending
is different. How they look at the property is different. But I'm going to be
really honest with you. In many cases, with those 5+ units, the
commercial real estate, they have some pretty awesome things available. So, just
start, okay? Just start with those 2 to 4 units and then quickly decide that
I'm probably going to go to 5 units and more, okay? So, I'm not telling you that
you have to start with houses. You totally don't have to start with houses.
You definitely can start with multi-family. But I guess this piece of
advice is go with those 2 to 4 units first to get your feet wet if you
have never had a property or you've never done anything like this before
before you go to that 5+ unit. Well, okay. That wraps up this video.
Hopefully you enjoyed all this content. Hopefully you are interested in
multifamily. I hope that you are because I love it. In fact, we're buying
apartments now like crazy and so are my students and we have this great network.
There's a link below to the opportunity to show you how you can get involved. How
you can start making money. Probably within 90 days doing this. You know, most
people are getting a check within 90 days. In fact, that's how it's set up. So,
check the link below. We have some great opportunity in multifamily with this
company that I have. Again, it's endorsed by the original shark from the hit TV
show, Shark Tank. So, this is amazing and you are on the right track by either
watching this video and being interested in multifamily. I'll talk to you next
time.