In this video I discuss the best way to get into multifamily investing.
Hey. This is Devin Elder. I’m out here at one of my projects in San Antonio. This is a 75 unit property where we’re putting in some private yards. We do a lot of work out here. But I wanted to talk about the best way to get into multifamily investing. If you’ve heard that it’s a good investment or it’s something you want to explore, probably the easiest and best way to get into it to start with is to become a passive investor in somebody else’s deal. Obviously there’s a lot of moving parts between how the financing works and how the valuations work, and there’s a lot to learn in multifamily, it’s definitely not a beginner investment strategy. But a big project like this requires millions of dollars and the sponsor or syndicator, the person putting the deal together, is usually not coming up with all that money themselves. So they’ll put together a group of investors, like we did with this property, buy the property and prove it, cash flow it, and make a bunch of money for everybody. Not to mention improving the community.
So you can participate as a passive investor, and once you do that you ride shotgun. You’re going to get a very good handle on how to do these kind of things yourself in the future. So that’s my recommendation for getting into multifamily investing is first be a passive investor and then look at leading your own deal in the future once you’ve gotten to ride shotgun.
Hope that helps.