Hi all! I am new to the posting arena, but have been reading the valuable info from people on here for some time now.
I am in the central part of new Jersey and am finally going out there and take action rather than just reading and watching webinars. I am waiting for 2 local rei meetings to go to this month and have decided to focus on multi-family investing.
I hear alot about private money and figure I’d go that route, but I think to wholesale a few deals to build up some cash. Any suggestions? My financial position…honestly…I’m paycheck to paycheck right now and have decided to end that chapter of my life soon.
I’ve always had a thing for real estate and I know this is what I want to do full time when the time is right! So, am I on the right foot on getting started???
I love the fact you have been getting a education by reading and watching webinars, however unless your living million dollar paycheck to million dollar paycheck it might be pretty tough to start out on multi - family commercial properties; unless you have a professional background in property management, real estate, management or finance and a long record working in the industry.
If you think finding money for homes and residential properties is tough, it’s like bringing the lamb to the slaughter walking in and believing you could convince private investors to work with you with no experience to do commercial properties. The problem is people with money are not going to invest with someone with no professional education, no experience and no track record!
Start with a single family home and go from there to a second and a third and build a track record and enough experience to jump into duplexes, triplexes and fourplexes and then expand into 5, 6 or 8 or 10 units, prove you can do it, gain the education and experience and create a track record by doing.
Then in a number of years you will have what it takes to convince an investor or two to put the money up to start your dream?
hey gold river, thanks for the welcome and reply. I figured as much that I need to start a little at the bottom so I will do so, especially with the SF. I read alot about the wholesaling bit and am going to do that and pick up a few properties inbetween to build up a rental portfolio. I guess right now I need to start building the team as i find deals.
A new investor and light on cash looking to start with multi family properties is a recipe for disaster. That’s a goal to strive for, not a starting point. Multi units are heavy on management issues, and a vacancy, (which you will have), can put you in financial ruin in a hurry.
Look at wholesaling or lease options as a way to start that is relatively risk free and has light cash requirements.
thank you very much members for your welcome and replies! Yes, I am looking to get into multi-families, but yes i do have to start lower on the totem pole…hence, why I am here on this great site. Want to get started on the right foot. AJ290, I was actually doing some more research to get into wholesaling. Have you or anyone else heard of Preston Ely?? I heard a lot about him and his system. Any suggestions anyone???
Diamond,
If you don’t own the house you live in, the easiest way into a multifamily is an FHA 203K loan. You would have to come up with 3.5% down. I’d look for a 4 family to start as it will likely have better potential cashflow and is still considered a residential property. This will give you a good basic understanding of landlording/property management. As you probably know 5 units and above are commercial properties.
im also located in new jersey and a newbie as well…after reading the post im a little intimated to move forward with my first property being a 4-unit, since most people were against it. but I’m going to do it anyway. my financial situation is a little different, i have saved away money in the bank. i am going through a first time home buying program called naca. naca.com. they will qualify you for properties up to 4-units with a cap. and will take 75% of the rental income and factor that into your mortgage. really good program no closing cost, etc. take a look at the website. like to know how you make out.
niuvya,
I’ve had family members who bought using the naca program in California. There were mandatory educational meetings and the contractor repairs were signed off on by inspectors. My relatives then made a lot of money when they sold the house, just before the bubble burst.
A 4-unit owner-occupied property is a great way to start your real estate investing. You will learn all about landlording.
Good luck, and hit these boards with your new landlord questions.
I think at this juncture investment in real estate is a good thing to move on as the US economy has been on the positive note post recession.There are good opportunities in and around California and Newyork.
Which REIA meetings are you looking to attend? I am from New Jersey and might be able to help you with some information about each. To be honest I prefer the smaller more intimate groups because it makes it easier to get help from more experienced investors.
I still think you should go to the meetings, whether it be GSREIA or MREIA you’ll be exposed to a ton of investors and that is never a bad thing. Just watch out for the product pitches from the speakers. Only buy if you’ve done your research.
I’m from NJ and have recently brought on a team of bird dogs and wholesalers. If you’re interested in networking further, drop me a PM or email offline. I would be more than happy to network with you.
scostell, I am going to the gsreia meeting next wednesday. that and mreia are the only ones i know of so far that are close to me. What smaller ones do you suggest?
Hi Diamond I am also from New Jersey (Hudson County). My advice to you is definitely pursue your real estate investing education with passion. It is important to know the various creative real estate investing strategies like lease options/options, wholesaling, owner financing, short sales etc so that you don’t leave “money on the table”. However, to be super successful you must understand first and foremost that you are in the marketing business not real estate. Real estate marketing is the business. Your success in this business hinges on your ability to find motivated sellers as well as motivated buyers and close deals with them.