This will be the first how-to article in a series covering ways to make money in multi-family properties. This episode is just introductory, and will just skim the surface on the major steps involved in acquiring and profiting from multi-family deals. If you are just getting started in real estate investing, and want to maximize the risk on your investment, multi-family housing is the way to go. Alright, let’s get the overview and make some money:
- How to Find Multifamily Properties:
This is the most challenging step for the real estate investor. If you are going to invest, you must learn The One Key to Real Estate Investing – buying right. I preach this a lot, and I cannot emphasize the importance of it. If you buy at or near market value, YOU WILL LOSE. The only way to win buying at market value is to hang on to the property forever, and pray it goes up in value over time. The savvy real estate investor knows that the property will not rent or sale for greater than market value, thus the only way to win is to buy at a significant discount.
- How to Buy Multifamily Properties:
After you find the property, you will need to be able to negotiate down the price. Rarely will you find a deal that is already priced at a level that will produce the necessary income to take on the risk. You will learn how to negotiate with sellers to get the necessary price.
- Multifamily Property Financing:
There are a zillion ways to finance any kind of property, but alas, financing a multi-family property is a little tougher than financing a primary residence, just due to the nature of property. It is investment property, even if you live in one of the units. Lining up commercial financing or finding hard money lenders is one of things you will be learning throughout this series.
- Marketing Your Multifamily Property After the Purchase:
You will need to know the prevailing methods to effectively find tenants that are willing and able to rent the property. I will take you through advertising, showing, and properly screening your potential tenants. I have had some trouble with a few tenants that I taken chances on, but in the end, it has all worked out so far.
- Multifamily Property Management Plan:
Someone is going to have to manage the property. I manage several properties here in the Belton/Temple area of Texas, and will show you how I manage my properties. It isn’t difficult from a theoretical standpoint, but you must keep emotion out of the game, or you will just get killed out there. People are masterful at convincing others of how bad there situation is, and how they can’t come up with the rent. I will give you some personal stories of how I dealt with such matters.
So sit back, relax, and hang on in the coming days as we plow through the methods and ideas for getting your multi-family empire started. But before you leave, make sure and sign up for my RSS feed, and get this great free information delivered directly to you automatically in a medium of your choice.