Beginner Guidance


I am looking to get into real estate investing, to start multi-family properties, and am looking for some direction. Currently I work full time as a manager of a bank and have a colleague who I am looking to partner with. We both make over six figures and our wives stay at home. We want to start investing in local real estate, multi-families, to supplement our income. Below are some questions that I am currently researching. Any help would be appreciated.

  1. Should we start an LLC
  2. Do we need real estate licenses?
  3. How can we get hooked up with a mentor/experienced investor in person?
  4. Should we use our own funds for financing(i.e. down payments) or should we seek private funds?
  5. Are multi-family properties the best way to get our feet wet- remember we work full time but our wives have time at home(while the kids are sleeping or in school).
  6. What is the best way to find profitable properties? Through agents/websites?
  7. Should we approach our mortgage broker with our business plan or should we look else where?

Thanks Again.


thanks for the info.

Investing in multifamily properties does not have to start as a 30 unit complex. Obtaining financing for 2 - 4 units can be much easier from a first property investment standpoint. It is a good way to test the waters so to speak. This will put you in a much better position to handle a large investment property. There are some good loan programs for 1-4 family properties.

That being said, the easiest way to find properties is to use a realtor. They have access to the local MLS database. These types of properties are going the be less discounted than non-listed ones. Starting with a realtor is a good way to learn the ropes before jumping into the real estate market on your own.

Another resource are online databases of distressed, foreclosed, REO and auction properties. You can find some great deals in there. Another resource is to contact apartment building owners to see if they are interested in selling.

Do you need a real estate license to invest? No, definitely not. If you are marketing other peoples properties, then yes. You do not need a license to buy and sell your own properties.

Thanks, that is more what I am looking to get into,2-4 units, to start and then see where it takes me from there. I am still just researching to see my first steps and who I should be talking with first. Thanks again.

In today’s mortgage market, getting bank financing can be a real trip. So your first step is to get pre-approved for a loan. Don’t even start shopping for investments until you have done this. Pre-approval will (1) tell you how much you can buy and (2) it will make it more likely a seller will accept your offer and (3) the closing is much quicker.