multifamily investing

Small multifamily investing is one of the fastest ways to reach financial freedom through real estate. With just a few multifamily rental properties, you can create passive income streams that’ll allow you to retire from your W2 job, go full-time into real estate investing, or have enough money to do whatever you want, whenever you want. Don’t think it’s still possible? Dave Meyer, multifamily investor and VP of Data and Analytics at BiggerPockets, may change your mind.  Dave started investing in real estate by buying a couple of small multifamily rentals within a block of each other. He lived in one of the units while renting out the others, allowing him to live for free and collect some sizable cash flow. Now, years later, Dave is collecting around $5,000 per MONTH from just these two properties. And if you invest in small multifamily rentals, you could experience the same cash flow!  If you want to invest like the experts and use the tools and calculators from this episode, sign up for BiggerPockets Pro and use code “FAMILYPOD20” for a discount!  In This Episode We Cover: How to achieve financial freedom by investing in SMALL multifamily real estate The four MAJOR benefits small multifamily boasts and why you’ll want to get in NOW The financial freedom formula and calculating out how much you REALLY need Financing your small multifamily rentals using loans and creative financing  How to use the BiggerPockets Rental Property Calculator to calculate cash flow, cash-on-cash return, and long-term profit  The dangers you MUST look out for before investing in ANY multifamily deal  And So Much More! Links from the Show Find an Agent Find a Lender BiggerPockets Youtube Channel BiggerPockets Forums BiggerPockets Pro Membership BiggerPockets Bookstore BiggerPockets Bootcamps BiggerPockets Podcast BiggerPockets Merch Listen to All Your Favorite BiggerPockets Podcasts in One Place Learn About Real Estate, The Housing Market, and Money Management with The BiggerPockets Podcasts Get More Deals Done with The BiggerPockets Investing Tools Find a BiggerPockets Real Estate Meetup in Your Area Rental Property Calculator Rent Estimator DealMachine ListSource Grab the Small Multifamily Slides and Worksheet: Slides Worksheet Already Pro? Check Out Pro Exclusive Videos! Sign Up for a BiggerPockets Bootcamp Hear Dave on The “On The Market” Podcast Wherever You Listen to Podcasts: BiggerPockets Apple Podcasts Spotify Dave's BiggerPockets Profile Dave's Instagram Book Mentioned in the Show: Real Estate by the Numbers by J Scott & Dave Meyer The Multifamily Millionaire by Brandon Turner Click here to listen to the full episode: https://www.biggerpockets.com/blog/real-estate-q3-1 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com. Learn more about your ad choices. Visit megaphone.fm/adchoices

When you think of creative finance, you think of Pace Morby. He didn’t invent creative finance, seller financing, or subject to investing. Instead, he perfected it, buying deals often with zero dollars down, low (or no) interest, and with terms any investor would dream of. But maybe you don’t know what creative finance is. Maybe the terms “seller financing” or “subject to” have never been mentioned to you before. As Pace describes in this episode, this industry-wide ignorance of creative finance is by design and keeps you from building wealth. To Pace, creative finance is the ultimate key to building a big rental property portfolio. But most sellers, buyers, and real estate agents don’t know about it. Describe creative finance to a regular realtor, and you’ll get laughed out of the listing. But, bring it up to a buyer, and suddenly everything changes. Don’t believe us? Pace brings up numerous examples in today’s show of how he was able to get real estate deals done that agents and realtors alike thought impossible. In this episode, you’ll get a complete intro to creative finance. Pace runs through the definitions, how each strategy works, why NOBODY talks about creative financing, and how YOU can start investing today (yes, TODAY!) with zero dollars out of your pocket and even with limited experience. Ready to start your rental portfolio? Tune in and get your copy of Pace’s new book, Wealth without Cash, today!  In This Episode We Cover: How Pace Morby buys multifamily real estate for NO MONEY out of pocket  Pace’s new BiggerPockets book that’ll help you get your first creative finance deal done  Seller financing explained and using it when a seller won’t budge on purchase price  The “subject to” strategy and how to lock in a rock-bottom mortgage rate even in 2023 Underwriting a real estate deal and seller lies that can often trick an inexperienced buyer Tax benefits of creative financing and how it makes a win-win for you and a buyer  The risks of subject to and seller financing and how to EASILY avoid them  And So Much More! Links from the Show Find an Investor-Friendly Real Estate Agent BiggerPockets Youtube Channel BiggerPockets Forums BiggerPockets Pro Membership BiggerPockets Bookstore BiggerPockets Bootcamps BiggerPockets Podcast BiggerPockets Merch BPCON2023 Listen to All Your Favorite BiggerPockets Podcasts in One Place Learn About Real Estate, The Housing Market, and Money Management with The BiggerPockets Podcasts Get More Deals Done with The BiggerPockets Investing Tools Find a BiggerPockets Real Estate Meetup in Your Area David's BiggerPockets Profile David's Instagram David’s YouTube Channel Work with David Rob's BiggerPockets Profile Rob's Instagram Rob's TikTok Rob's Twitter Rob's YouTube Boost Your Knowledge with Pace’s Creative Financing Bootcamp BiggerPockets Podcast 527: 300 Doors, 100% Creative Financing Real Estate Rookie Podcast 236: Creative Financing 101 with No Cash, Credit, or Credentials Real Estate Rookie Podcast 280: How to Buy a Rental Property with NO Money OR Credit Rob and Pace’s Recent Collab Books Mentioned in the Show: Wealth without Cash by Pace Morby Connect with Pace: Pace's BiggerPockets Profile Pace's Instagram Pace's YouTube   Click here to listen to the full episode: https://www.biggerpockets.com/blog/real-estate-757 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com. Learn more about your ad choices. Visit megaphone.fm/adchoices

A commercial real estate crash is looking more and more likely in 2023. Rising interest rates, compressed cap rates, and new inventory about to hit the market is making commercial real estate, and multifamily more specifically, look as unattractive as ever to a real estate investor. But with so much money still thrown at multifamily investments, are everyday investors going to get caught up in all the hysteria? Or is this merely an overhyped crash that won’t come to fruition for years to come? Scott Trench, CEO of BiggerPockets and host of the BiggerPockets Money Podcast, has had suspicions about the multifamily space since mortgage rates began to spike. Now, he’s on the show to explain why a crash could happen, who it will affect, and what investors can do to prepare themselves. This is NOT a time to take on the high-stakes deals that were so prominent in 2020 and 2021. Scott gives his recommendations on what both passive and active investors can do to keep their wealth if and when a crash finally hits. But that’s not all! We wouldn’t be talking about multifamily without Andrew Cushman and Matt Faircloth, two large multifamily investors who have decades of experience in the space. Andrew and Matt take questions from two BiggerPockets mentees, Philip and Danny, a couple of California-based investors trying to scale their multifamily portfolios. If you want to get into multifamily the right way or dodge a lousy deal, stick around! In This Episode We Cover: The commercial real estate crash and bad news for high-interest rate investors Cap rate compression, rent stagnation, and red flags for the multifamily market  Recommendations for both active and passive multifamily investors How to vet a real estate syndication deal when raising private capital Scaling from small to large multifamily and why the jump is easier than you think Cash flow vs. appreciation and which is a better bet if valuations start to tank Balloon payments, adjustable-rate mortgages, and risky financing options putting new investors in a tough spot And So Much More! Links from the Show Find an Investor-Friendly Real Estate Agent BiggerPockets Youtube Channel BiggerPockets Forums BiggerPockets Pro Membership BiggerPockets Bookstore BiggerPockets Bootcamps BiggerPockets Podcast BiggerPockets Merch Listen to All Your Favorite BiggerPockets Podcasts in One Place Learn About Real Estate, The Housing Market, and Money Management with The BiggerPockets Podcasts Get More Deals Done with The BiggerPockets Investing Tools Find a BiggerPockets Real Estate Meetup in Your Area David's BiggerPockets Profile David's Instagram David’s YouTube Channel Understanding Rental Property Depreciation—A Real Estate Investor’s Guide House Hacking 101—What It Is and How to Get Started Your Debt-to-Income Ratio Can Make or Break Your Investing Career On The Market Podcast 65 with Ben Miller On The Market Podcast 71 with Brian Burke BiggerPockets Real Estate Podcast 708 BiggerPockets Real Estate Podcast 719 Book Mentioned in the Show The Hands-Off Investor by Brian Burke Connect with Andrew, Matt, Dave, and Scott: Andrew's BiggerPockets Profile Dave's BiggerPockets Profile Matt's BiggerPockets Profile Scott's BiggerPockets Profile Click here to check the full show notes: https://www.biggerpockets.com/blog/real-estate-721 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page! Learn more about your ad choices. Visit megaphone.fm/adchoices

The multifamily real estate market seemed almost impenetrable over the past two years. Unless you had millions in dry powder, ready to overpay for a huge apartment complex, there was a low chance you’d be making any money in the multifamily industry. This gave the big buyers an unfair advantage, while smaller investors struggled to put almost anything under contract. The tables have started to turn as interest rates rise, repricing becomes the norm, and multifamily buyers start fleeing the closing table. It’s now your time to shine, small-scale investors. As large buyers begin to fear a housing market crash, you can swoop up the spoils that could benefit you for years to come. But, before you do so, you’ll need to understand how exactly multifamily investing works. Back again on the show are Andrew Cushman and Matt Faircloth, two multifamily masters in their own rights. They’ve become real estate veterans after over a decade worth of investing experience. Now, they’re here to share some beginner steps and tips on how you can get into the world of multifamily real estate, regardless of your experience, knowledge, or bank account size. These steps are simplistic at a high level, but doing them correctly could help you beat out the competition for years to come. The only question is, are you ready to start? In This Episode We Cover: Why today’s “fearful” multifamily market is a great opportunity for new investors  Evaluating your goals, skillset, and advantages before you step into the multifamily market The biggest mistakes new investors make when choosing a real estate market How to get deals sent directly to you and build up a network of top-tier brokers Building your real estate dream team that’ll allow you to scale with far less headache Raising private capital and using other people’s money to grow your real estate empire  And So Much More! Links from the Show BiggerPockets Youtube Channel BiggerPockets Forums BiggerPockets Pro Membership BiggerPockets Bookstore BiggerPockets Bootcamps BiggerPockets Podcast Get Your Ticket for BPCon 2022 Listen to All Your Favorite BiggerPockets Podcasts in One Place Learn About Real Estate, The Housing Market, and Money Management with The BiggerPockets Podcasts Get More Deals Done with The BiggerPockets Investing Tools Find a BiggerPockets Real Estate Meetup in Your Area David's BiggerPockets Profile David's Instagram BiggerPockets Podcast 571 BiggerPockets Podcast 586 BiggerPockets Podcast 634 BiggerPockets Podcast 279 Harvard Joint Center for Housing Studies Crexi Loopnet Berkadia Cushman and Wakefield CBRE Marcus and Milichap Colliers Books Mentioned in the Show: Long-Distance Real Estate Investing by David Greene Raising Private Capital by Matt Faircloth Connect with Matt & Andrew: Andrew's BiggerPockets Profile Matt's BiggerPockets Profile Click here to check the full show notes: https://www.biggerpockets.com/blog/real-estate-661 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page! Learn more about your ad choices. Visit megaphone.fm/adchoices

Real estate underwriting isn’t a commonly used term within the residential world. If you’re used to dealing with single-family homes, duplexes, triplexes, or quadplexes, you’ve probably done real estate underwriting to some degree, but you’ve called it “real estate analysis”. In both scenarios, investors are looking at what they’ll make on a deal, how much they need to invest, and what exit strategies they have. But, in a hot housing market, like we’re in today, by the time you analyze a deal, a deal may already be gone. You need a way to quickly sort deals into the “pursue” or “dump” piles, and Andrew Cushman, expert multifamily investor, may have just the solution for you. Andrew has been on the BiggerPockets podcast before and manages over 2,600 units, so he definitely knows what he’s talking about! Today, Andrew showcases the phase one underwriting he uses to decide quickly on deals, as well as the four levers to look at before even getting into underwriting. His system can save you hours, or even days, if you’re a full-time investor, and it helps rookie investors quickly analyze deals so they can get into the game. Now, residential owners can transition into commercial real estate with better scale and bigger profits. In This Episode We Cover: How Andrew scaled from zero to 2,600 units in only ten years The basic screening process that allows you to triage your deals and waste less time Four levers every investor should look at when analyzing a new deal The six factors of phase one multifamily underwriting and using it to unlock “home runs”  Developing and nurturing broker relationships so you can get off-market deals before your competition  And So Much More! Links from the Show BiggerPockets Forums BiggerPockets Podcast 169: Using Hustle and Persistence to Build Wealth Through Real Estate with David Greene BiggerPockets Podcast 170: The Journey From Flipping Houses to Owning 1,470 Units with Andrew Cushman BiggerPockets Podcast 270: Turning Your Primary Residence Into 40 Units & Financial Independence with Amy Arata How to Find Overlooked Opportunities in a Hot Market with Andrew Cushman Hal Elrod's Website BiggerPockets Calculators Submit your Question for an upcoming Seeing Greene episode! CoStar ESRI LoopNet Invest with David Greene David's Instagram Check the full show notes here: https://www.biggerpockets.com/show571 Learn more about your ad choices. Visit megaphone.fm/adchoices

If you own a single-family rental or a portfolio of single-family rentals, the world of large multifamily may seem scary to you. There are so many more tenants and units, there’s a different financing structure, and what about finding the deals? At some point, many investors make the jump into the world of multifamily, and they rarely look back. One of our own, J Scott, did the same when he offered a year's worth of work for free in order to learn the multifamily game. Joining him today are multifamily syndicators and thought leaders Ashley Wilson, Brian Burke, and Joe Fairless. Together these four investors manage over two billion dollars worth of multifamily real estate. And just like many listeners, they at one point started at zero. J uses this episode as a multifamily roundtable, asking each of these veteran investors about the state of the housing market, where to invest, how to plan an exit, which strategies they use when investing, and how rookie investors can get started. Regardless of your unit count, experience, or real estate skills, all these investors believe that with some hard, creative work, you too can succeed in multifamily! In This Episode We Cover: Why 2021 was the “perfect storm” for multifamily (and whether or not it will continue) Cap rate and why it isn’t as great of a metric as most investors think it is Creating an entrance and exit plan for a large multifamily deal Finding the “value-add” that will make you and your investors more money How to analyze a multifamily market using a number of demographic metrics Transitioning from single-family investing to multifamily success Growing relationships with owners, brokers, and multifamily vendors And So Much More! Links from the Show BiggerPockets Forums BiggerPockets Youtube Channel UHaul Joe Fairless's Podcast Matthew McConaughey University of Houston Speech Check the full show notes here: https://biggerpockets.com/show532 Learn more about your ad choices. Visit megaphone.fm/adchoices

We’re back for part two with The Multifamily Millionaire authors Brandon Turner and Brian Murray. This time, Brian is on the mic to give you the ten steps to purchase your first large multifamily property. You may be thinking that these ten steps sound too easy for such a large deal, but that is part of the advice that Brian gives. Brian wants smaller multifamily owners or even single-family owners to know that buying a large multifamily property is just more volume, not a completely different skill set. If you own one or multiple units right now, you may have more skills than most to take down a 100-unit apartment building or a big mobile home park. The only thing standing in your way is the mindset. This episode just scratches the surface of what’s possible in large multifamily real estate investing, the rest can be found in The Multifamily Millionaire Volume II. As a reminder, if you purchase before the end of August 2021, you’ll get a four-week multifamily masterclass, taught by Brandon Turner. In This Episode We Cover: Why chasing larger deals leads to larger profits  Understanding the skills needed to become a successful multifamily investor Shrinking your criteria down to a micro-level, not just a macro overview Starting (or investing in) syndications so you can get into bigger multifamily deals Capital stacks, debt, and other types of financing when buying large properties Why underwriting is more than just putting numbers into a spreadsheet And So Much More! Links from the Show BiggerPockets Forums BiggerPockets Calculators BiggerPockets Pro Membership BiggerPockets Youtube Channel BiggerPockets Bookstore Brandon's Instagram David’s Instagram BiggerPockets Podcast 126: From 0 to 400+ Units Through Value-Add Investing with Brian Murray BiggerPockets Podcast 212: Buying a 115-Unit Apartment Complex for No Cash Out of Pocket with Brian Murray Discover the Multifamily Book bonuses  Click here to check the full show notes: https://www.biggerpockets.com/show497 Learn more about your ad choices. Visit megaphone.fm/adchoices

Have you been looking for the right way to find deals in today’s tough market? Today’s show might be just what you’ve been looking for! Join us as Brandon and David sit down and bring out the gold nuggets on what’s working for successful real estate investors in today’s hot market. You’ll learn six strategies that will help you land deals and build wealth, as well as detailed insight into how to pull them off successfully. You’ll want to hear this advice about how to find deals, how to set up your business, and how to protect your capital that not everyone is talking about! For the second half of the show, Brandon and David share five “accelerants” that will help increase the level of your success once you’ve found the strategies that work for you. This show is the first of its kind, and we think you’re going to love it. You spoke, we heard, and this is the content the people want. Download and share this gem today! In This Episode We Cover: Strategy #1: BRRRR Strategy #2: House Hacking Strategy #3: House Flipping Strategy #4: Vacation Rentals Strategy #5: Wholesaling Strategy #6: Syndication Accelerants and how to pour fuel on the fire OPM (other people’s money) Value-add Forced equity Increased cash flow through additional units Leveraging others (core four) Finding deals from your sphere of influence Funnels Partnerships Personalities Skill sets Resources And SO much more! Links from the Show BiggerPockets Forums BiggerPockets Bookstore BiggerPockets Podcast 302: Making $100k/Deal Using Other People’s Money, Time & Experience with Cory Nemoto KECO Capital KECO Capital’s Instagram BiggerPockets Hard Money Lenders BiggerPockets Webinars BiggerPockets Podcast 212: Buying a 115-Unit Apartment Complex for No Cash Out of Pocket with Brian Murray BiggerPockets Podcast 126: From 0 to 400+ Units Through Value-Add Investing with Brian Murray BiggerPockets Podcast 355: From Small-Time Landlord to 1,000+ Units Under Contract with Ryan “The Mercenary” Murdock Paying Off Student Loan Debt with a Median Income and Two Kids in Northern California with Kyle Renke Check the full show notes here: https://www.biggerpockets.com/show358 Learn more about your ad choices. Visit megaphone.fm/adchoices

Is there such thing as a “perfect investment?” According to today’s guest, yes. Today on the BiggerPockets Podcast we sit down with Paul Moore, a real estate investor whose 18-year journey through real estate has included house flipping, new construction, hotels, and finally—multifamily. In this episode, Paul shares three powerful reasons why multifamily might just be the most perfect real estate investment. You’ll learn how Paul discovered the vital difference between investing and speculating, why falling in love (with a deal) is incredibly dangerous, and the huge real estate gamble that Paul made that cost him $40,000. If you plan to eventually buy small multifamily properties, this is one podcast episode you can’t miss! In This Episode We Cover: Paul’s history and how he got into real estate Bought a house for $34,000—painted it, and sold it for $65,000 Never fall in love with a deal From two failed flips to 50 successful ones! The difference between gambling and investing How he built a Hyatt hotel with a partner and lost money Some reason behind the dropping of homeownership Why he thinks multifamily properties are perfect investments How he looked at 180 deals this year He sold an HR company in ’97 for almost $3 million. Ten years later he was 2.5 million in debt. How he was able to end up debt free 13 months later Financing an $8.7 million multifamily property What is a green loan program? The journey to a syndication process How he’s been able to write a book, have a podcast, and write for BiggerPockets Networking through BiggerPockets And SO much more! Links from the Show BiggerPockets Forums BiggerPockets Webinars Tim Ferriss Show BiggerPockets New Member Introductions Forums NMAC Conference Books Mentioned in this Show Mastering the Rockefeller Habits by Verne Harnish The Perfect Investment by Paul Moore The Complete Guide to Buying and Selling Apartment Buildings by Steve Berges The ONE Thing by Jay Papasan and Gary Keller Fire Round Questions What is a good way of finding multifamily owners if it’s owned by an LLC? Where do you gets your numbers when it comes to multifamily units? Tweetable Topics: “Every percent drop in home ownership means a million new people in the renter pool.” (Tweet This!) “When baby boomers rent, they never return to buying again.” (Tweet This!) “Don’t fall in love with a deal.” (Tweet This!) “Wealth built up slowly over time is the key to become successful.” (Tweet This!) Connect with Paul Paul’s Company Website Paul’s Podcast Paul’s Posts on BiggerPockets Paul’s BiggerPockets Profile Learn more about your ad choices. Visit megaphone.fm/adchoices

Change is good, right? We hope so – because in this episode of the BiggerPockets Podcast, we change a lot of things up and invite you to come sit in the BiggerPockets digital coffee shop and listen in on a fascinating discussion! For the first time, we bring back a previous guest on the BiggerPockets Podcast to move beyond “their story” and dig into the dirty details on a very popular and important topic: multifamily rental properties. Today Ben Leybovich, who shared with us his powerful journey almost a year ago on episode 14 of the BiggerPockets Podcast, is going to talk with us about what it takes to succeed as a multifamily investor – looking beyond the numbers and truly investing in the right kind of properties. As I said- this show is a little different. Rather than just an interview, we decided to make this episode more of a “conversation” between Ben, Josh, and myself – discussing (and often loudly debating) everything from “what kind of properties to buy,” “what kind of location someone should buy in,” and a long debate on one of Brandon’s most recent purchase- the ugly purple triplex. Although this is our longest show, at almost two hours in length, I think this is one of the most powerful podcasts we have ever done because it’s totally unfiltered, deep, and raw. Come be a fly on the wall in our “digital coffee shop” and discover everything you ever wanted to know about investing in multifamily rental properties. In This Show, We Cover: Managing single family versus multifamily properties Why cash flow is not enough to base your decisions on Brandon’s “Waldo” property: good, bad, or something else? (Leave your opinion on the debate in the comments below!) The Validity (and Problems with) the “Rental Property Rules“ The 13 Steps to Analyzing a Multifamily Property How valuation differs between single family and multifamily Dealing with studio or one bedroom apartments Why Ben doesn’t like 2 bathrooms in an apartment Ben tells Josh to “shut up“ How to really learn what expenses will be And a lot more!  Links from the Show BP Podcast 048: Duplex Investing, Finding Great Properties, and Tips for Managing Tenants with Darren Sager BP Podcast 060: From 0 to 68 Rental Units in Just Four Years with Serge Shukhat How I Found, Analyzed, and Bought an Ugly Purple Rental Property (Waldo) by Brandon Turner Should I Buy a Rental Property with Great Cash Flow in a Bad Location? by Brandon Turner How to Buy a Small Multifamily Property by Brandon Turner Bigger Pockets Rental Property Calculator Bigger Pockets Fix and Flip Calculator The 50% Rule: How to Quickly Analyze a Multifamily Investment Property BiggerPockets.com/meet  (Find Local BiggerPockets Members) Books Mentioned in the Show Landlording on Auto-Pilot by Mike Butler 13 Steps to Valuing Your First Multiplex – A Step by Step Guide [Kindle Edition] by Ben Leybovich Tweetable Topics You can put lipstick on a pig all day long – but if you have a pig, you still have a pig. (Tweet This!) We don’t put money into property- we put money into location. (Tweet This!) If you wanna fly – you need to hang with people who fly. (Tweet This!) Stumbling blocks and stepping stones look very much alike. (Tweet This!) Our job as an entrepreneur is to produce cash flow out of thin air. (Tweet This!) Connect with Ben Ben’s BiggerPockets Profile Ben’s Website: JustAskBenWhy.com Learn more about your ad choices. Visit megaphone.fm/adchoices