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 Estate
Large Multifamily Real Estate
Typically 2-20 Units
Typically 80+ units
No on-site staff
On-site staff
Likely financed by a local bank
Likely financed by large commercial lenders with assistance of mortgage brokers
Down payment probably self-funded
Down payment probably funded by raising money from investors
Typically managed by owner or small local property manager
Typically managed by large, third-party property manager
Usually local
Usually long-distance
Owner likely knows tenants' names
Owner unlikely to know tenants' names
Repair work to units done by owner or handymen hired by owner
Repair work to units done by contractors or on-site employees
Property rehabs performed by owner or local contractors who handle small-scale projects
Property rehabs performed by contractors who handle large-scale projects
Bank's decision on whether to fund typically based on owner's borrowing strength
Bank's decision on whether to fund typically based on property's business strength
Owner usually involved in daily operation of investment
Owner 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.
