Ten Steps You Must Do When Considering A Multifamily Apartment Investment

Residencial-MultifamilyIf one of your goals as a real estate investor is to focus on high monthly cashflow – then you should consider investing in Multi-Family properties. I suggest start out investing with smaller multifamily properties at first. When you are first starting out investing in Multi-Family units, a 4 – 20 units sized property is the perfect starter property. It opens up an opportunity where you possibly can join forces with another investor and also the projected income can adequately cover the expenses of the property and factor in management, debt service, and vacancy expenses.

10 Steps For Buying A Multi-Family Property

1. Figure out your Buying Strategy

  1. High Rental Return (monthly cashflow)
  2. Value Appreciation (huge payout when you sell)
  3. Distressed Sellers (good properties at slight discount)
  4. Distressed Properties (discounted fixers)

2. Build/Contact Your Virtual Team

  1. Realtor/Commercial Broker
  2. Title Company
  3. Insurance Agent (did you know they can tell you about past claims?)
  4. Accountant/Bookeeper (needed after purchase)
  5. Property Inspector
  6. Appraiser
  7. Surveyor (banks usually require you to pay for a report)
  8. Contractor/Handyman
  9. Property Manager/On site staff

3. Work Out Financing Options

  1. Register with a Hard Money Lender
  2. Get a Proof of Funds letter
  3. Notarized Bank Balance Statement
  4. Pre-Approval Bank Loan Letter

4. Consider you Entity Structure

  1. Think asset protection for your state
  2. Think tax advantages for your area

5. Set A Budget & Search For Deals

  1. Use Craigslist, Zilllow, Trulia, Loopnet databases
  2. Ask Realtor/Broker to set up email alerts

6. Show Interest & Make An Offer

>>>>  Learn How At:  http://charleston.viprespond.com/
7. Due Diligence

  1. Order a property inspection
  2. Review the rent rolls and past tax returns for the property
  3. Order a market rent analysis from realtor

8. Deal/No Deal

  1. Consider if the information gathered during due diligence changes your mind about your plans for the property
  2. Renegotiate terms of your offer
  3. Verify your financing options for the specific property

9. Rainy Day Plan

  1. Prepare for crisis with a plan for the worse or explore exit strategies
  2. Keep cash on hand to fund repairs in the beginning

10. Management

  1. Hire a Property Management Firm definitely if you are more than 200 miles away
  2. If you decide to maintain it your self, consider having a handyman live on site for discounted rent

Multi-Family investment properties offer real estate investors many advantages: cashflow, tax advantages, appreciation, etc. You can start out small by buying a Duplex, Triplex or Fourplex in your area just to wet you feet with a income producing property.

Real Estate Investments in  income producing properties provide great long-term returns. There are many great opportunities for real estate investors in the market right now. Learn how to maximize your opportunities with these strategies and investing techniques listed above.

So what’s next?

Come to our Multifamily Real Estate Marketing and Business Creation

http://charleston.viprespond.com/

LOCATION: Hyatt Charleston Airport
DATE: June 22-23
WHERE: Charleston, SC

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