How do I get started in multi-family real estate?

I've been in the property management game for 11 years working for several corporations and entities that own mutli-family real estate. What and how would you suggest getting started, financing? etc. for someone who wants to make the leap from a property manager to a property owner?
Thanks,
Paul
In Buying Property - Asked by Paul N. - Aug 27, 2009
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Answer(s)

Peter N.
Broker/Agent
Valhalla, NY

With 11 years of experience, you should already have the skills you need. Now all you need is the money, aprox 30% of purchase price.
One suggestion is to try and find one of the properties that is owned by the company you work for. Maybe a building that is more of thorn to that company, but it could work for you. They'll be happy to get rid of it, you'll be happy to aquire it and maybe you could work out a special deal with them for financing and down payment.
I think every deal requires creative thought and financing. See how creative you can get with what's around you.

Aug 27, 2009
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Eric G.
Owner/Investor
San Jose, CA

Hi Peter and Paul. I also would like to get started in multi-family real estate out of state and I have good credit and a well paying job. Only problem is that I do not have the 25% to 30% down payment that is normally required by lenders. I currently own a rental property in CA but due to the down economy, I do not have enough to cash out refi on it. Are second notes still an option? Any other suggestions would be helpful. Thank you.

Aug 27, 2009
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Karim A.
Broker/Agent
San Diego, CA

You can get started in multifamily in at least the following three ways (not meant to be an exhaustive list).
1) Acquire in an area where 30% of the purchase price is in your budget
2) Participate in a syndication (i.e. partner up with like-minded investors) to acquire in an area where coming up with 30% alone is outside of your budget
3) Explore seller carry options to reduce the amount of downpayment required - this of course, can be used in combination with (1) and (2) above.
Although, personal investment objectives differ, I personally chose (2) and (3) above for my own multifamily investments - not only does this spread my risk across multiple properties, but also enables me to buy in "more expensive" areas where the economic base tends to be stronger. If you have more questions on the above, feel free to give me a call at 619-813-5809

Aug 27, 2009
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Davide P.
Broker/Agent
Pinole, CA

To Paul N. & Eric G. If you don't have the full 30-35% down for a bigger multi unit building, you can also try a 2-4 unit building. Granted, you still need a bigger down payment of 20-25%, but at least it could be more in your range. As for financing, as for recommendations but any broker or banker that knows what he/she is doing should be able to find you something presuming you have the financial back up for it.

Aug 28, 2009
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Gregory G.
Broker/Agent
San Francisco, CA

Sounds like you have some great relationships with owners and potential sellers. Maybe you can get owner financing from one of them.
http://www.gregorygarver.com

Sep 1, 2009
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David A.
Owner/Investor
Tempe, AZ

Paul and Eric, I am not certain what your cash situation is, but if you have an IRA you can roll into a self directed/real estate IRA and use those funds as a down payment or as a full cash offer. Let me know if you have any further questions.

Sep 13, 2009
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Eric R.
Owner/Investor
Portland, OR

you have had your feet in the water for 11 years now.. Jump in.

Apr 2, 2014
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