Business Model
Multi-Family
One of the largest sectors of real estate investing are multi-family dwellings, which includes apartments, duplexes – any structure that houses two or more households. There are roughly 39 million Americans who live in apartments alone – the second largest number behind single-family homes. Multi-family housing is also one of the oldest sectors of U.S. real estate, with the first such structures being built in 1839.
Multi-family investing revolves around buying structures at a good price, renting and managing them successfully, raising rents when appropriate, and riding the increase in real estate values leading to an ultimate exit with a profitable sale (or holding the property in perpetuity). Since multi-family units come in all shapes and sizes, there are deals in every price point, and in different levels of management skills required. There is also the opportunity for new construction, as most cities welcome new multi-family starts, and this may also lead to successful projects available in the new Opportunity Zone legislation.
Rent Land
Marketing
Re-Investment
Business Model
Multi-Family
One of the largest sectors of real estate investing are multi-family dwellings, which includes apartments, duplexes – any structure that houses two or more households. There are roughly 39 million Americans who live in apartments alone – the second largest number behind single-family homes. Multi-family housing is also one of the oldest sectors of U.S. real estate, with the first such structures being built in 1839.
Multi-family investing revolves around buying structures at a good price, renting and managing them successfully, raising rents when appropriate, and riding the increase in real estate values leading to an ultimate exit with a profitable sale (or holding the property in perpetuity). Since multi-family units come in all shapes and sizes, there are deals in every price point, and in different levels of management skills required. There is also the opportunity for new construction, as most cities welcome new multi-family starts, and this may also lead to successful projects available in the new Opportunity Zone legislation.
Rent Land
Marketing
Re-Investment
Pros
Huge Market of properties to choose from
extremely high demand
rent growth
abundant financing available
liquidity
Cons
low cap rates
overbuilding a consistent threat in some markets
tough clientele in class c units
large capital expense risk in some properties
Market Research
Articles & Reports
WHY BUYING A DUPLEX IS NOT FOR EVERYONE
Everyone in the U.S. knows what a duplex is. But many don’t know if a duplex investment is right for them, and the truth is that it’s not the perfect purchase for everyone. So what would make you think twice about buying a duplex? Tenants In one word: “tenants”....
HOW TO PROPERLY HARNESS THE INVESTMENT POWER OF A DUPLEX
There are few investment vehicles more versatile than the standard American duplex. Essentially two dwellings that share a common wall (although sometimes a lower vs. upper floor) these economic workhorses have many different options to meet a variety of financial...
POTENTIAL TO CONVERT BACK TO SINGLE FAMILY: AN EXTRA LEVEL OF INVESTMENT SECURITY
Webster’s defines a duplex as “a house divided into two apartments, with a separate entrance for each”. That being the case, why not be able to convert those two apartments back into a single house? It’s an issue that many duplex owners think about. Two options are...
updates
Forum & Deals
Learning about and committing to investing in multi-family is only half the battle. The real challenge is finding the right deal to invest in. These resources will help you find the right deal to give a diligence focus and potentially buy. Remember that finding the right multi-family is all about volume, so the more potential deals you look at the better your odds of finding the right one. Don’t just look at a few options, look at as many as you can find. Success in multi-family investment revolves around making as many offers as possible.
Education
Books & Courses
Before you risk any capital, your first step is to learn everything you can about how to profitably invest in this niche. To accomplish that, there are both free resources as well as books and courses to aid in your quest for mastery of this real estate sector. We recommend that you take advantage of every opportunity to learn as much as possible before you invest your time and money. The most important trait of a successful investor is being able to quickly separate deals into a “might be an opportunity” stack versus a “not an opportunity”, as well as know the steps to conducting superior due diligence. In niche investing, knowledge is power – so get as much of it as you can.
Providers
Brokers & Lenders
No buyer can succeed without assistance from those who can source deals, as well as finance them.
Brokers are an important part of finding properties to buy. This is their specialty, and they typically have listings that are both “public” as well as “private” (those that they are not allowed to reveal to the public due to restrictions from the seller). Successful buyers contact all of the brokers in their niche to see what listings they may have, as well as to get set up in their email database for announcements of new listings.For a complete list of these brokers click the Learn More button below.
Lenders are the key to successful real estate investing, as it is through the sensible use of leverage that rates of return are maximized. Banks generally all follow the same basic lending principles, but there are certain facts regarding each niche that have to be explored. In many cases – on deals of $1 million or more – you should explore using a loan broker (also known as “capital consultant”) to obtain a loan for you for a fee. This is extremely important on CMBS “conduit” debt and Fannie Mae/Freddie Mac “agency” debt. On deals under $1 million, you should focus on seller financing as well as local banks that know the market and are aggressive in lending to their base. For a complete list of these brokers click the Learn More button below.
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