8 Steps to Becoming A Multimillionaire With Multifamily Real Estate

Do you find yourself wondering how you can acquire wealth sufficient enough for your kids and grandkids? Well, it is a hundred percent possible. By purchasing real estate, you can acquire that much wealth. Here is how it works.

Step 1. Select an emerging market

When buying real estate, it is important that you carefully select where you should invest. You can make the decision by determining which cities have a high job growth rate, cities with a good amount of tenants in its population, and the development of the city’s economy.

Step 2. Start a marketing campaign

After making a decision on the market you choose to invest, you need to begin your marketing campaign. In order to get your building on multifamily listings to attract customers, it is essential for you to create a broker relationship. You can do this by getting linked with a broker and building a solid relationship with them.

Step 3. Create a team

In order to succeed in real estate, you need to create a good team. Despite how much knowledge you have in the business, you cannot do it all alone. Your team should include brokers (at least 5), property management companies, lenders, attorneys, accountants, and appraisers. When making this team, ensure they are all trustworthy and diligent professionals.

Step 4. Carry out analysis on deals

Ensure that you analyze your deals correctly, similar to how banks carry out analysis. Ensure that you look at interest and expense and other details between the lines.

Step 5. Use letters of intent to make weekly offers

Put up two offers to buy weekly. This is because you need to make sufficient returns for your investors. While some deals might be missed, a high percentage of risk will be reduced.

Step 6. Due Diligence

After you get an offer accepted, you need to carry out financial, legal and physical due diligence. For the financial due diligence, request the right documents from listing broker. Physical due diligence involves property inspection, and for legal diligence, an attorney is required to handle the title work.

Step 7. Finance your buy

When it comes to financing your deal, you can make use of national lenders or local banks. It is also important that you finance your deal with a mortgage broker.

Step 8. Seal the deal

After following the steps above, finish out the paper works at an attorney’s office and complete the deal. Afterward, you can proceed to your next deal.

Hay2Brick, we follow this 8 steps to buy apartment buildings.

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