Today, more and more people are now doing the big switch from single-family to multifamily real estate property investing. This is because multifamily investing is more promising in terms of value, competition as well as the return on investment.
On the other hand, shifting to another investment opportunity is not as easy as you think. I can attest to that. The road to success wasn’t easy. I had encountered a lot of setbacks and mistakes before I finally learned the ropes of it.
I am here to share my experience when I was transitioning from single-family to multifamily real estate property investment. I’m going to share my thoughts and insights too so that new investors will have a smoother shift.
1. Educate Yourself
Educating yourself more about multifamily investing is definitely the first and foremost thing that you have to do if you intend to shift. You may be proficient in single-family investment, but transferring to multifamily is another thing.
I invested in reading books, particularly the Multi-Family Millions, by David Lindahl, which has given me enormous tips and knowledge about how you can succeed in multifamily investing. YouTube videos by Grant Cardone also helped me learn the myths and misconception of investing in multifamily. BiggerPockets forum is an incredible avenue wherein you can interact, share information and get more insights from the experts in the industry. Before I jumped in, I make sure that I have the right information I need like the cap rate, NOI, cost segregation, and other essential terms that can help me understand the industry more.
2. Set a Deadline
I allotted 1 month and a half just to educate myself. I make sure that I am knowledgeable with different terms and lingo of multifamily real estate investment. I think being acquainted with these terms means it is easier to understand how multifamily works because it is completely different from single-family. Setting a timeline has given me that drive to learn more about multifamily investing and really jumped in.
3. Take a Leap of Faith
I also realized that you have to have the leap of faith if you really want to switch to multifamily investing. After learning and being familiar with the necessary information about this opportunity, the next thing that you have to do is to apply that to reality. Well, everything can be learned but you have to try it, right? You need to test the waters first so that you can experience it.
If you are not going to do it today, when are you going to do it? Do not make excuses, do it today! You cannot apply what you have learned if you are not going to take that dip first, right?
Start by talking to brokers, start sending the deals, and then driving for dollars approach. Do not just stick to 2-3 deals, you have to look for more to maximize your opportunity to get that deal. Doing this will definitely open doors for you.
4. Inform Your Investors
Investors play a great role in any business; without them, it can be hard for any to thrive and succeed. When preparing for the big shift from single-family to multifamily investment, I make sure that my partners and investors are aware that we’ll be transferring to multifamily.
I think doing this will make them feel more valued and respected. This is also an ideal way to get commitments in advance. Being transparent to your investors is very essential as it helps to build trust and confidence in your business.
Summary
Shifting from single-family to multifamily investments can be challenging for anyone who wishes to embark on this new journey. However, as what the quote says, “We become what we think about” by Earl Nightingale, I think everything is possible as long as we have the determination and perseverance. It did not take me overnight just to get where I am today, I am not bragging by any means, but having that positive outlook and mindset has helped me succeed. I hope the tips mentioned above can help people who wish to switch to multifamily investment.
P.S.
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