Many real estate investors who have gotten their feet wet in the industry by purchasing single-family dwellings are looking to upgrade their commitment by investing in multi-family dwellings. The profits can be much greater of course, but there are also some added concerns which you should be aware of before committing to multi-family investments.
Working your way up the ladder
One of the most solid ways to work your way up the real estate investment ladder is to begin by purchasing a duplex. This can help you learn the nuances of the business fairly quickly, and it can minimize your investment so that you’re not crucified if things go south. Once you feel you’ve got a handle on all the ins and outs of duplex management, and you’ve built up a little nest egg for further investment, it will be time to take the next step up the ladder.
Find deals for a syndicate
Prior to taking the plunge as a full-fledged investor in multi-family investments, you could wet your feet a little better by identifying bargains and great deals for an existing syndicate. You’ll have to work hard to get good at this, because it’s not easy to sniff out great deals in the real estate business. When you do find one though, you can take it to a syndicate, and at the same time position yourself to get a seat at the partnership table. If you can pull this off once or twice successfully, that will not only give you some solid background in sniffing out great multi-family investments, but you may also have earned enough money to be prepared to go it alone.
Find a mentor
The last important step you should undertake before taking the plunge into multi-family investments is to identify a mentor who can help you navigate through the pitfalls of the real estate industry. Even if you have to pay someone for their services, it might well be worth your while, because it can help you avoid some of the most damaging mistakes, and it can also put you miles ahead of your competitors.
Are you considering a multi-family investment?
If the only thing holding back your investment in a multi-family dwelling is financing, contact us at Steadfast Funding Partners. Our financial experts will be glad to discuss some opportunities with you for securing the necessary capital to carry through with the transaction.