Buying an apartment complex may sound overwhelming, but the most important thing to remember is, you won’t be doing it alone.
For one thing, you won’t be coming up with the money on your own. As a syndicator, you’ll be raising money for your investment.
Your friends and family a great place to start. But before you can present your investment opportunity to others, you need to be clear about what you’re doing. Your very first step is taking charge of your knowledge.
How to Buy an Apartment Complex
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Educate Yourself
Read, watch videos, learn from those who are already succeeding. Learn from their mistakes as well as their success.
Here’s a story, for instance, of how I bought a 12-unit apartment building with money raised from private individuals. This deal closed against all odds and then nearly bankrupted me. I share this story because I don’t want you to make the same mistakes I did.
You can find my book Financial Freedom With Real Estate Investing here, and find other resources here.
Your education is fundamentally important when it comes to buying your first building and fortunately, there is a wealth of knowledge out there.
Network With Other Investors
You know what’s great about social media? It’s social. Find online real estate groups and join in the conversation.
Attend your local Real Estate Investor Club meeting and listen to what others have to say.
Find the commercial real estate investors in your area, take them out for coffee, ask them questions.
Get out there and network with the other people who are making apartment building investing work for them and see them as a resource. Be proactive. You can’t be afraid to pick up the phone, ask for what you need, and explore your market.
Go to Workshops and Seminars
When you start networking, you’ll have a sense about whether or not multifamily is for you. If you know that it is, then sign up for workshops and seminars, both online and in-person.
A good seminar (even one that may be more expensive) will help you avoid mistakes and will speed up the process of the learning curve. Investing in a good workshop is an investment in yourself that will pay for itself by saving you time and heartache.
Create a Deal Package
Search for deals and request the marketing package for one of them.
Then create your own deal package. Include information about the property, photos, your business plan, actual financials, and projected financials and returns.
This will be useful to you in several ways. For one thing, it will help make the whole thing more real to you. For another, you can use it when speaking to potential investors, brokers, and lenders to give you credibility.
Practice Analyzing Deals
Next, buy or create a deal analyzer spreadsheet and answer the question “what is the most I can pay for this deal?”
The more you analyze, the more confident you’ll get.
Tour Properties
Start where you are – maybe you’re in a position to buy a duplex, rather than a building. Start with a duplex for your first deal and grow your business.
Call a broker, request the marketing package, analyze the deal, and arrange to visit the property.
Write a Letter of Intent (Make an Offer!)
Once you’ve worked through these steps, you’re ready to submit a Letter of Intent!
It may feel scary, but the worst that could happen is that it gets rejected and you submit another one.
And there’s no need to worry because even If your offer is accepted, it’s not legally binding. You can always withdraw it.
We know if you follow these steps over the next 3-6 months, you will be amazed at the progress you’ll make.
We know you can do it. We’re cheering for your success!
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