5 Reasons Why Multifamily Real Estate ROCKS
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- Опубліковано 9 чер 2024
- Multifamily real estate is one of the most scalable ways to build wealth not only in the world of real estate investing but investing in general. Brandon Turner, host of the BiggerPockets Podcast, went from sleeping in his car to owning 2,500+ units largely through multifamily investing. So, should your first (or next) property be a multifamily investment?
Brandon shares some of his top reasons behind making multifamily real estate his favorite type of investment. Things like scalability, leveraging, consistent improvement, house hacking, and simple wealth building are some, just to name a few. Not only that, but you have access to multiple different property types as a multifamily real estate investor. You could invest in duplexes, quadplexes, 10-unit apartment buildings, or a 300-unit mobile home park.
In multifamily, the choice is yours when deciding how fast or far you want to scale. So, are you ready to make an offer on your next multifamily?
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The Guide to Massive Profits Through Small Multifamily Investing:
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Invest with Brandon:
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00:00 Why Multifamily Investing?
00:53 #1 It's Scalable
04:31 #2 You Can Use Leverage
05:56 #3 Over Time, It Just Gets Better
06:40 #4 House Hacking Potential
08:13 #5 You Build Wealth
09:21 Should You Invest in Multifamily?
To everyone that is struggling, in order be successful at anything, you don't have to be different. You simply have to be what most people aren't: consistent.
I have friends are struggling and wants to succeed but they dont want to do anything not even pay their own bills.
@@savann.sun1980 Yup that's the sad part
I think I have a strong start investing in real estate. But I have trouble with the next step because even though I have money saved I’m no longer with the 40hr a week W-2 form to qualify me for the next loan.
@@infamist same boat. Hard money lenders and private investors seem to be the move.
@@pit1513 Nice
I currently have a duplex and now working with the City to convert it into a quad. 🤞🏾🤞🏾🤞🏾🤞🏾
That is dope! If you do not mind what city are you in! I’m looking for my first property to be a multi-family
Keep going king
@@poormanspenthouse douglasville.
I own many rentals and my multi family units are easily the most profitable. I don’t own any 50 unit structures yet but am looking to buy one before the end of the year. 3 and 4 unit buildings are great and I highly recommend them
I DONT KNOW WHERE TO START NEED HELP
I’m never looking back (for a SFH) after buying my first duplex. Good luck to you in your journey!
That’s what I would like to get into soon. But housing is very inflated here in Canada.
Taking action now makes a lot difference in the future. This content was inspiring. Thanks Brandon.
took me 5 yrs to get to 22 units that Cash flow $8k per month in Arizona & a Net-Worth over $1mil. follow Brandon's advice & get started now. don't keep waiting.
Nice! What terms did u get on loan?
Did you do this from multi family?
Congrats!! That’s where I want to be in 3 years from now!
@@reyessuarez4978 make it happen. it's definitely attainable if you take advantage of owner occupied home loans and buy 2-4 unit properties, live in them a yr and move out. your money, cash-flow, & net worth will snow ball 📈🚀
@@johnnyb33good21 yes sir that’s the goal! I’m looking for my first 2 or 3 units live in one rent the others thank you!!
Dude, 2500!!!
I've been listening to you for a few years now and it seemed like just the other day, you were trying to get to a 100 units!!👍🏾
Love it man! Closing on a my first 3 family very soon 🙏
I had to double check. Nope, the speed is not on 1.25x, it's just Brandon's excitement on topics like this and we appretiate it very much
. 75 speed is good. he sounds a little high tho. Lol
I love creators like this, so passionate about the topic; watching you I can tell you have so much info and you just want to share it all! Thank you for sharing
I love your humility Brandon, awesome video, thanks for sharing
Your passion for Multifamily and struggles resonate with me so well, thank you for this!!
100% agree, great episode!
So much valuable information . Thanks you
You’re the man Brandon! Thanks for the inspiration!
Another outstanding video Brandon, always get to take something away from your videos, great episode!
I needed to hear this. 💯 Thank you
This is why I miss Brandon in BP podcast! Thanks brother!
Thanks B!
Investing in Multifamily means financial, time and location freedom, plus making money in our sleep... That is the beauty of investing in Real Estate! Another great video, Brandon! :)
Love it! Thank you
thanks for the great information--you are so funny and make learning fun
STRAIGHT GEMS. PRICELESS. LOVE THE BOOKS
love the new intro!
I'm a newbie and it's slow and a good amount of work at the moment. So good to be reminded why I'm doing this!!
Please be careful out there everyone. This is great advice as an asset to go after because when it comes to commercial properties that generate rental income this is the only one people pay to live in compared to working in. People will always pay that bill first. BUT you can run into some major deferred maintenance problems and general maintenance. Plus there’s the issue of just not knowing what good real estate is. Highly recommend working with brokers. Happy earning everyone 🤙🏻
Finding the investors is the hard part for me
True Consistency is Key. WOW
Getting this book and real estate by the numbers next.
I got into my first multi-family because of him an BP four years ago! This video inspired me to get back in the game and buy a new one.
Well said.
This is the life I want bro 🙏🏾🤲🏾👑
I am currently rehabbing my first SF investment property, and I am already looking for my second MF. The two concerns that I have are how do I approach the partnership with a friend who wants to start investing with me, and what does one do when the duplexes, tris, and fourplexes are almost always being occupied by tenants that are paying way below what the rents should be bc they've been renting for 10-20 years? thanks!
thank for the video great insight is there anyway that we can get the ups and down of owning a multifamily property?
What is your advice for small, new landlords who come across rent forbearance issues? The equivalent could happen again. It's a very precarious position.
A video on the difference between investing 100K into a multifamily(3 plex) unit you buy and own yourself and investing 100k into a capital fund that raises funds to buy large multifamily units would be great!
and add a video on how to make fluffier pancakes to the list. Let's have Brandon do everything that comes to mind
Can't solve for everyone goals with something like that. Also might be viewed as given direct financial advice and unless your a licensed financial advisor or willing to be sued for media liability most people won't do something like that
I have an important question. How do you find investors? I live in a very upcoming area and want to get started but don’t know where to find investors other than banks
How do you overcome the 100 mile rule if you already have a conventional mortgage and live in one side on a duplex? Im trying to get a 4plex close enough to personally manage.
Thank you 🙏🏽
Trying to grasp this, so Cash Flow is essentially the delta between your monthly payment to own the properties and the sum of all rental payments?
Just pre ordered multifamily millionaire
Love it! ❤ 💯 Looking to get a triplex by Jan 1st 2022.
Yes!
Awesome stuff. I found that once I became more generous with money, the more money seemed to just find it’s way to me
A quote I once heard; “it’s hard to receive with a clenched fist.”
Completely agree same experience! God bless!
Is multifamily rental unit must on commercial / rental zone or can be on housing zone
Let's GO BRANDON
Just made an offer on my first rental property! Gonna try the house hacking method definitely nervous but excited to get into this world!
Congrats and good luck! Hope you get it!
This year I got out of debt and saved an emergency fund. Next year I’m buying my first duplex through FHA loan and house hack just to get my feet wet and be able to save more money. 2023 I’m going for a fourplex. 2024 I’m breaking into commercial real estate.
Angel whatever you do
Get this book
WHAT EVERY REAL ESTATE INVESTOR NEEDS TO KNOW ABOUT CASH FLOW AND 36 OTHER KEY FINANCIAL MEASURES BY FRANK GALLINELLI
simply the best book over 17 years now
JB.OK
Been listening to u about 2 months now. Learn a lot from the multi bearded guy that’s Brandon all I can say is thank u sir !!!
we own 3 apartments 8-unit 9-unit 9-unit
I got my first one I’m trying how to purchase my next one since my capital is low right now.
How do you make the transition from single family to multi family or should we just start at multi family
Love it
Hi!
I am 26 year old and I live in New York City. I am planning to buy a two family house for $1.2 million.
I have good credit score but I don’t have enough income. Have a down payment of $50k.
What should I do so that I can get approved for that much loan?
21 now working on a none realestate degree, I will start my realestate next year when this degree is done, let's see what 31 brings
Greatest idea I ever had. Now multimillionaire
This is something I have really wanted to learn more about first hand. Anyone with experience I would love to hear from you.
Heyyy Brandon great info, if you read this comment PLEASE can you make your books translate to Spanish, ?? There is a lot of people trying to learn from your books but they only speak Spanish thanks
About to accept an offer for my house back I bought at the end of 2018! With this crazy market I’m about to walk away with 100k after all costs including est taxes. trying to figure out what to do next and would love suggestions! Interested in Airbnb, multi family and just trying to figure out how to keep growing! Always watching BP for great info and motivation! I’m also a realtor in the Orlando FL area where I work and intend to keep investing.
can you house hack a small multifamily (4 unit) using FHA 3.5% DOWN and then take that $100k and use it as a 20% or 25% down-payment on a 4-Plex ? you would be at 8 units just like that. after a yr move out of the house hack and rent the whole thing out and buy another. Plus you have your real estate license so you can earn a commission on purchases
@@johnnyb33good21 that’s an awesome idea, I keep forgetting to factor in that I’ll make commission when I buy them so that stretches how much I can buy a bit! Just finished listening to BP show 506 where Brandon replays his webinar about buying small multi-family and that definitely got me more interested in that! Thanks for the idea!
How much do you interest do you pay your investors? How do you structure the deal? Would really appreciate these details. I have some investors that believe in me but I don’t know the best way to propose a deal that does not insult them. Mutually beneficial
How do you get funding for properties that have more than 4 units because they're no longer considered residential
Have good credit not much income how can I start how much capital do I need
Do you have all your properties in one city/state?
YESSSSS
Turner i almost missed you for Tai Lopez, lol
Hey Brandon, how do you suggest I get the 3.5% down if I live in a very expensive market and don’t have the money to buy in my area?
Might have to go virtual my friend or move.
You don't
U buy elsewhere and build up at low costs....but whatever u do get this book
What Every real estate investor needs to know about cash 💸 flow
and 36 other key measures
By Frank Gallinelli over 17 years now.
Prolific investor
jb.ok
I love Bigger Pockets! Thank you for all your content!!!
Hey everyone, I just bought my second investment property and can not be nore excited!! Who better to celebrate with then biggerpockets!
bad-ass! your part of the very few who have actually taken action
@@johnnyb33good21 for sure, it took me like two years of studying the process before I jumped in but so glad I did. You're making your way too looks like, congrats!
Congrats man! talking property gets me excited lol my new found passion
Congrats!
Had 4 rentals for 5 years, this past year finally decided to focus on growing my portfolio and increased it to 16 units. Its possible, just have to save a little$ but alot of it has to do with finding a good lender and realtor. Creative financing is a must. Financing is just like a chess game, you have to think and plan your moves before you execute them so you are still left in a good position after your purchase.
Please explain multifamily vs single family investment…
You find so many examples all over UA-cam and bigger pockets.
Question!
Owner occupying currently, the money I've been getting for rent I've been setting aside in a separate account. Is this ok? I'm using paycheck to cover everything at the moment and "pretending" I'm not getting rent. Ive been budgeting and trying to save on top of that as well. New to this but very pumped !
Put property in llc and keep money in a separate account so that in the event of a lawsuit a judge can’t pierce it.
Disclaimer consult your cpa
@@56TheAnimal, really? You’re suggesting he put his own occupied house in an LLC? It’s really not advantageous to put properties into an LLC until you have a larger portfolio. With a small portfolio you are going to spend significantly more on the formation of an LLC as opposed to simply upping your liability insurance or creating an umbrella policy
@@strat1080 having insurance is a good plan. But if he intends to build a portfolio and has enough equity in the deal moving into an llc would be advantageous as long as they continue to keep the money in a separate account.
I’m no Grant Cardone, I do owner occupy with insurance, but I do plan to put into an llc when I have enough equity so i can protect my other properties and personal assets in the event of a lawsuit.
However they should still sit down with an expert and discuss their personal situation.
we own multi-family apartment rental my husband is doing everything on his own he is just not welling to hire someone else, and he haas his day job on top of that.
Brandon’s energy could power a medium sized city.
The knowledge is a bonus.
Lol. So true.
How do you handle the eviction ban when your tenants aren't willing to pay?
I would think you would look into buying multi family rentals in states that are pro owners. Do your research.
move to a landlord and business-friendly state like Arizona, Texas, Florida And if you do have a non paining tenant you can hire an attorney or go down to the court your self and file the paperwork which they can give you.
just filed an eviction on 1 of my tenants in Arizona. Paid $63 to file and then paid a process server $73 to have the tenant served. We will have court in 1 wk. If I am awarded a judgment against the tenant I will have to wait 5 days and then I can file a writ of restitution to have the constable come out and remove the tenant. so pretty quick here in Arizona. Be careful buying property in California, New York Oregon or Washington State as time goes on these States are getting less friendly towards property owners
Six family in NYC and three non-paying renters. One has not paid since COVID started and owes over $30k. No court dates, attorney can’t do a thing, no method to evict and the tenants all have jobs but are simply not paying because they don’t have to.
@choco empir unfortunately nothing you said is actually going to work. Do some research on it. There's a lot of left-leaning states that are siding with the tenants and basically telling the landlords to shove it. They really don't have to pay rent if they don't want to anymore and there's nothing you can do and no you cannot evict them.
I would agree with purchasing properties in conservative areas which vote red. Conservative our areas always protect businesses first.
Did you have to get that first house paid off before you could start getting other places right off the bat?
🎯
Canada. The biggest property bubble in the world.
Thank you Brandon. Your awesome
Better Yet Buy cash use Equity Loan
Do you recommend paying off your investment?
Can you get a triplex with FHA?
Yes
@@vanessiaclark6701 Really! I didn't know that, what a 12 room apartment building?
@@reactionreaper2501 FHA is available for up to 4 units only. Duplexes, Triplexes and Fourplexes. You do have to live in one unit for 1 year.
“I am not saying being rich is going to make you happy but neither is being poor…” lol
So many people want to start building there portfolio. But I would definitely take it slow in times like these. Theres stuff that I never considered. Like the bigger more expensive 6 plex on up pay really high property taxes. I hate to break it to most of y’all but grant cardone is right about the 12 units and up. Anything lower than that your just paying down the note. Theirs a lot of people saying they own all these property’s in reality they have several partners and that means they get no cash flow. Real estate is expensive and sometimes the numbers don’t add up. Be careful…
I'm weeks away from purchasing my first property, scared but excited.
your life is about to be forever changed for better!
Craig little advice if u will
Make sure u read this book
In print 17 years now follow
WHAT EVERY REAL ESTATE INVESTOR NEEDS TO KNOW ABOUT CASH 💸 FLOW AND 36 OTHER KEY FINANCIAL MEASURES
by FRANK GALLINELLI
simply the best book out there...
Real sounds good looks good...but does
It taste good
An RE INVESTOR 35 YEARS EXPERIENCE.....
jb.ok
❤️soon
Brandon I'm ready to make a shift, what's next?
HELLO MULTIFAMILY MORE MULTIFAMILY UNITS..
jb.ok
Thank you so much sir!
why is this called making money off multies, the pioint he made could be applied to several types of RE deals
What if I only have $100k?
What’s your net worth champ?
Did Brandon just up sell me on multi family? 🤨
Brandon loves Multifamily but his focus with OpenDoor Capital is mobile homes.
Mobile home parks * big difference
I don't know if property values will continue to go up. They're pretty high already just due to the housing crisis. Eventually more houses will be built since there's plenty of land in the US. Also, ppl are having less children, so the demand might go down at some point due to demographic collapse.
High relative to what. The inflation in the prices of houses is actually significantly lower than many other commodities. Labor, lumber, etc are going to go up which will continue to drive up the price of residential and commercial buildings.
For example the price of oil has risen significantly more than the price of a home. Real estate crashes have happened of course but markets generally recover and eclipse pre-crash levels. As an investor it’s just important to invest in healthy markets that are growing and have good paying jobs available
You say there’s plenty of land. Where’s the land located? Outside of the urban areas where most people want to live. Most people aren’t going to want to commute more for work.
@@strat1080 I don't think it's meaningful to compare the inflation in house prices to that of the other commodities that have been oddly impacted by this pandemic. What's going on with labor is a bizarre once in a lifetime event, the price of oil is notoriously volatile, cars are experiencing supply chain issues for specific parts, and so on. Housing appreciation isn't part of a general trend of inflation in prices. Rather, it's one of several commodities that have experienced a sudden, and unusual, inflation due to the pandemic.
I live in a fairly rural area that has historically low appreciation (around 2%/ year i think). I bought a house a couple years ago for $190k. It's currently worth around $270k. Why? Well, it's partly because interest rates have hit rock bottom lows to combat the pandemic. A lot of people from more urban areas are moving into the area (maybe covid makes urban areas less appealing, and maybe it has made people realize they can work from home). Also, i think the early days of covid slowed down the housing market and caused pent up demand that way. Lastly, there hasn't been much new housing construction since the 2008 crash. It seems to me that most of these factors can't last. Interest rates won't stay this low forever. With all this demand, sooner or later there will be more housing construction. Most rich nations will experience demographic collapse sometime in the future due to women not having many babies. I've seen the effect that demographic collapse has had on rural Japan, which just consists of ghost towns nowadays. While i don't expect it to get as bad in the US, I do expect it to impact the housing market eventually.
@@Zoetherat well said
Looking at my FIRST multifamily deal right now.
Four one bedroom apartments which are currently only renting for $350 per month but tenants have been there for over 5 years "I think I can get $500 each".
Also has two store fronts on the bottom which currently rent for $350 a month but both tenants have been there for years as well.
Owner wants $190,000. I think it's a steal. But I'm nervous
$350 rent?? Pls SHARE where this is…no need to be specific..just a general area is all I need…that’s incredible !
@@kaffeine69 Missouri. Trust me the rent is still really low all things considered. I'm not sure why the owner never upped the rent in the last 20 years.
@@discoveryoutdoorskcfishing236 laziness or maybe they have such a good relationship the landlord feels bad about raising the rent… I am in a very cheap rent situation, should be double what I pay…because of both of those reasons. Gotta put your business cap on!
Imagine if interest rates go up
ABOUT TO INHERIT 2.5M...NEED HELP INVESTING IT THANKS
Does brrr still work in this market?
Don’t wanna be rich just enough for to live
Stop freaking saying a 100 000$ multi family house. It doesn’t freaking exist.
They do. All over the country. But really he’s just saying that to use as an example that’s easy to calculate
This video got HEAVY😢
They won't when no one pays their rent
Thanks to Brandon and David, I finally got off my ass bought my 1st home. And it had and DADU on it! Mortgage is $850 ... DADU is rented for $750. In freaking Texas!
3 months of searching for the right property... and i finally got it!
Hey whats a DADU?
A HOME IS NOT AN ASSET ITS A LIABILITY.....RESIDENTIAL TALKING ABOUT...
BRANDON IS TALKING BOUT
MULTIFAMILY UNITS TOTALLY DIFFERENT ANIMAL...
GO GET THIS BOOK PLEEZ
WHAT EVERY REAL ESTATE INVESTOR NEEDS TO KNOW ABOUT CASH FLOW
and 36 other key financial measures
By FRANK GALLINELLI
simply the best book...
JB.OK
@@johnbenjamin2703 ILL USE CAPS LOCK TOO! THE POPERTY I PURCHASED IS A 2 UNIT "MULTIFAMILY" PROPERTY.
MAYBE REWATCH THE VIDEO AND YOULL UNDERSTAND
@@maria123co detached dwelling unit.
Think of a "mother in law suite"
Love love love the content I just wish it didn't have to come through Brandon. Can't stand him