Investing in multi-family buildings can seem very intimidating, especially when investing in single family homes is a lot more simpler. In comparison, investing in multi-family real estate or apartment buildings has a much higher financial risk as well as a lot more work. HOWEVER investing in single family homes is only one way to build your wealth and real estate portfolio. As a seasoned real estate investor, I had built a real estate portfolio with many different properties, including single family homes, duplexes, triplexes and etc. I realized the one thing I was missing in my portfolio was a multi-family apartment building, where I potentially could have a higher return on my investment.
After talking to other investors, reading blogs such as Bigger Pockets, and watching youtube videos, I learned that, while large multi-family properties can seem intimidating, fundamentally it’s almost the exact as the duplexes, triplexes. The difference: It is just on a much bigger scale and some additional intricacies through the process.
Thus, in 2019, I joined with my other partners and bought our first apartment building with 17 Units and now we own it for free! WATCH the full video to learn about my journey investing in large multi-family properties.
HOW WE FOUND THE DEAL:
One of my business partners, Jeff Wybo, who is also a real estate agent, had seen the property for sale at one point. Then he later noticed that the listing had expired. An expired listing is one that was previously listed on the market, did not sell and expired.
So, we quickly crunched some numbers on a purchase price that meet our metrics. In this case we cared primarily about 3 things: 1. Can we purchase it for under market value? 2. Will the property cashflow? 3. Is there room for forced appreciation?
All three of these criteria were met, so Jeff got in contact with the listing agent for the expired listing and asked him if he still had a relationship with the sellers. Turns out he did, so we made an offer and….. BAMMMMM IT WAS ACCEPTED!
WATCH the full video to learn how we financed, BRRRRed the property and how we now own it for free!
