What is a realistic figure for getting started in the apartments thesedays?
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Free registration at the forum removes this block.Of course you could always jump into partnerships with others. There are groups that allow investement into deals of all different sizes. This way you can get into 100+ unit sized properties.
I believe SteveO has done this before. I don't know how detailed he got in his success story, but I believe he at least mentions it in there.Anyone have some success stories or getting started stories pertaining to this. Seems like this is a great way for a smaller player to get in the fastlane. Also a great way for a first timer to get his/her pocket picked.
I've personally had a bad experience with this but still want to try again. I've scoured my local REI group, but can't find the interest. I am in a smaller market and it seems that the folks involved in this area have their established group and don't network outside of it. People in my area that invest in SFRs love to network, but I can't find that in the Multi/Commercial folks.
Just like SteveO's example above that would require 450k capital to get going. Ten investors each bringing 50k to the deal would be something that i'd be interested in. How does one get started down this path?
Just like SteveO's example above that would require 450k capital to get going. Ten investors each bringing 50k to the deal would be something that i'd be interested in. How does one get started down this path?
Just wondering how it works when multiple people (especially as many as 15, as you have) are involved in day-to-day decision making...
We met these people through local REI groups and were recommendations from other investors that we knew.
For someone completely starting out , what would be a smaller scenario? What should someone be looking for in a smaller scale? (given your estimates of 20-30% down). What is considered small in the apartments?
Anyone have some success stories or getting started stories pertaining to this. Seems like this is a great way for a smaller player to get in the fastlane. Also a great way for a first timer to get his/her pocket picked.
As you get smaller in unit size, the cost per unit goes up. This is especially true for the smaller complexes. I would break down the size as:
The small complexes won't typically support a manager in the financials. Many owners of these property types are the operators and managers. This presents a problem for someone trying to break into the apartment market. You can still get around this by finding the right deal or putting a larger amount of money down. It is difficult to find a good manager for this size property as well.
- 2-19, small
- 20-59, midsize
- 60 and up, large
The biggest problem in my opinion is the challenge of being able to purchase in the up and coming areas. Catching the up-slope of a market that is blossoming is where the biggest gains come from. It is always possible that the area you live in is preparing for one of these swings. If so, it may make sense to purchase and manage by where you live.
The time and effort that it takes to go and evaluate locations is enormous. It makes more sense to do this if you are working on large scale properties. It is still important to do regardless of the property size though.
Agreed. I have put together a few of these deals and continue to do them. All investments have risk. This can be minimized by teaming up with the right people.
I think what Steve means is that the financials may not work in the smaller apt complexes with professional management, thus investing in them would be difficult to do remotely. This problem can be alleviated if you are willing/able to self-manage the units, put more money down (30% instead of 20% for example), or get an exceptionally good deal on the price.
Again, issue gets back to economies of scale...generally the economies of scale will benefit you more and more as size increases...whether it be for property management, cost per unit, and so on.
My apologies to Steve if I am misinterpreting...hope this helps MP
If I had a business reason to go, I would be there in a flash. :banana:
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