Guidelines in commercial REI

[lightweight99]

I stumbled across this sub forum through curiosity and it got me thinking, I may be at the point where I can get into multi-unit invesments.

Originally, I was going to do some lonnie deals to get more capital, but I was curious as to whether having the capital necessary to invest was enough to get into these types of investments?

Money available to invest: $50,000

My real estate experience is 0. I'm thinking I will need to build up a good amount of credit with my bank and get to the point where I can take out six figure + loans. If that is the case, how does one get to that level?

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[kwerner]

I can hear Russ H asking:
"What is your goal with multi-units? How does it fit into your PLAN?"

 

[lightweight99]

Goal is to produce income.

My plan is to accumulate $35,000,000 or more to produce $200,000 or more a month in income

 

[hofster]

I do agree with your opinions,

Goal is to produce income.

My plan is to accumulate $35,000,000 or more to produce $200,000 or more a month in income

It's really a good and flexible job.Thanks for sharing.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[G_Alexander]

Anyone can dream of having $35,000,000 in assets and a healthy cash flow, but those are your net worth goals...not your PLAN to achieve them.

Right now the credit markets are still insanely tight. And chances are unless you have major collateral or a successful history with a local bank, you aren't squeezing a penny out of a piggy bank. Do you have any credit history yet? Do you know anyone who could privately lend you money?

You need to put together a growth plan. Do you want to buy and hold? Do you want to refinance into new debts (read: larger properties) after your first few deals. What is your leverage tolerance?

Start searching through and reading all of the real estate threads here on the forums to give yourself a base knowledge of real estate from our members points of view. SteveO, RealOG, GLC, JScott, and many more have posted guides on getting started all the way up to major management.

Develop a good analytical strategy for the properties you are looking at. $50,000 can turn in to a pile of gold or vanish in a second if you aren't smart with even simple due diligence.

Go to the library and pick up books on multi-unit investing (Vollucci or Burgess).

Or, find someone on these forums or at a local REI club to partner up with who you can learn from.

I am currently trying to secure a triplex on my University campus, so while I have already made mobile home deals, spent ample time with multi-unit guys, and read all the books; I am just getting my feet wet as far as a physical deal.

It may seem like that is a lot to throw on your plate before you consider your first deal but that is the reality of getting into CREI. Sure, anyone with $50,000 can just jump in and lose their a$$ off, but if you are prepared for your battles you can make millions.

G. Alexander