The Multifamily Millionaire Vol. I: Achieve Financial Independence by Investing in SMALL Multifamily Real Estate

Physical Copy:

Audiobook:

By: Brandon Turner

Rating: A-

This book is a crash course in how to invest in small multifamily real estate.

The author differentiated small and large multifamily real estate by number of units but also by the method in which they are acquired and operated.

Small Multifamily Real EstateLarge Multifamily Real Estate
Typically 2-20 UnitsTypically 80+ units
No on-site staffOn-site staff
Likely financed by a local bankLikely financed by large commercial lenders with assistance of mortgage brokers
Down payment probably self-fundedDown payment probably funded by raising money from investors
Typically managed by owner or small local property managerTypically managed by large, third-party property manager
Usually localUsually long-distance
Owner likely knows tenants’ namesOwner unlikely to know tenants’ names
Repair work to units done by owner or handymen hired by ownerRepair work to units done by contractors or on-site employees
Property rehabs performed by owner or local contractors who handle small-scale projectsProperty rehabs performed by contractors who handle large-scale projects
Bank’s decision on whether to fund typically based on owner’s borrowing strengthBank’s decision on whether to fund typically based on property’s business strength
Owner usually involved in daily operation of investmentOwner usually not involved in daily operation of investment

Topics they addressed were:

  • Property Types
  • Choosing your location
  • Property conditions
  • Price ranges
  • Profitability and Analysis
  • Strategy for finding deals
  • Finding deals on-market
  • Finding deals off-market
  • Walking a property
  • Traditional financing
  • Creative financing
  • Making quality offers
  • Due Diligence
  • Managing the property
  • Accounting, Taxes, and Legal Entities

My favorite Chapter: Chapter 12: Finding Small Multifamily Deals Off-Market

  • Strategy 1: Drive for Deals
  • Strategy 2: Direct-Mail Marketing
  • Strategy 3: Networking with Landlords*
  • Strategy 4: Working with Property Managers
  • Strategy 5: Working with Local Wholesalers
  • Strategy 6: Online Marketplaces

Many owners have “headache” properties that they would be willing to sell, even though they haven’t decided to do so yet. When you connect with them before they list their properties officially, you can land some terrific deals.

Just because you find a property off-market doesn’t necessarily mean it’s a great deal. You’ll need to do the math to find out whether it’s the right property for you.

Decide on a strategy. Commit to it. Treat it like a business. Develop systems, track, trend, adjust. You will find deals, if you work at it.

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