How to Get Started in Multifamily Real Estate: Skipping the Line and Leveling Up
Have you ever thought, “I want to jump straight into multifamily, skip single-family, RV parks, and all that small stuff?”
You see big players like Grant Cardone or Brandon Turner, and you think, “I want in!”
Well, today, I will show you how to get started in multifamily and, more importantly, how to skip the line.
First Step: Know Who You Are
The first question you must ask yourself is simple: Who are you?
Where are you starting from?
Are you brand new to real estate, or do you have some experience under your belt?
Are you someone with active income, or are you looking to build passive income right out of the gate?
Your path will depend on your current position and what you bring to the table.
How to Get Started in Multifamily
If you want to jump straight into multifamily, here are some practical ways to do it.
I’m breaking this down so you can see which one fits your situation best:
Raising Capital for a Fund Description:
This strategy involves partnering with a fund by helping raise capital. If you’re skilled at
building relationships and selling investment opportunities, this could be your ticket into
multifamily.
What You Need:
A network of investors who trust you. A brand or credibility built on past
successes or relationships.
Potential Challenges:
If you’re starting from scratch, raising capital can be tough. People
won’t invest $100K in your fund if you’ve never done a deal before.
Pro Tip: If you know how to raise capital, you can join my fund and earn a promotion fee
while building your credibility. Go to investsub2fund.com and start there.
Fund of Funds
This strategy involves creating a smaller fund that invests in a larger established fund. For
example, your fund can invest directly in my SubTo fund, allowing you to benefit from my
credibility and success.
Benefits:
You earn active income: You receive a promotion fee for every dollar raised.
You build credibility: You can present yourself as an experienced fund manager, borrowing
my fund’s reputation and portfolio.
You learn from the best: You get firsthand access to my team, processes, and deals.
Pro Tip: This is one of the best hacks in the industry. You can market yourself as part of my
team while building your own brand and credibility.
Invest as a Limited Partner (LP)
Busy professionals with extra capital can invest as LPs, meaning they provide the capital
while the fund manages everything else.
Who It’s For:
This is ideal for attorneys, doctors, engineers, or anyone with a demanding job and a solid
savings account.
Benefits:
You get passive income: You receive monthly distributions from the fund.
You gain experience: You’re now part-owner of multifamily properties.
You build credibility: You can say you’re a partner in a multimillion-dollar fund, opening
doors for future deals.
Real-Life Example:
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I recently met Shima, an attorney who had $500K sitting in the bank. She invested all of it as
an LP in the SubTo fund. Now, she gets a check every month, builds her credibility, and has a
new story to share with her colleagues, which helps her raise more capital.
Start Small and Level Up
This is how I started. I began with fourplexes, learned the ropes, and gradually scaled up to
larger properties.
Why It Works:
Lower entry point: You can get into the game with smaller deals and less capital.
Build your track record: You establish credibility and experience that’ll help you secure
bigger deals.
Learn from experience: You understand how multifamily operates before diving into larger
deals.
Pro Tip: You can find these smaller deals using creative finance strategies like Subject-To or
seller finance.
Working for a Fund
If you have time but not enough capital, working for a fund can be a great way to learn the
ins and outs of multifamily while earning active income.
Benefits:
You gain hands-on experience: You’ll learn everything from underwriting to asset
management.
You build relationships: You’ll connect with investors, brokers, and other real estate
professionals.
You earn income: You get paid for your work, and you may even earn equity over time.
Real-Life Example:
Bo, my portfolio manager, started by working with me. Over time, he earned a percentage of
the portfolio and built a strong track record in multifamily.
Wholesaling Multifamily Deals
If you’re already wholesaling single-family properties, you can transition into wholesaling
multifamily deals.
How It Works: You find a good deal, put it under contract, and then assign it to a multifamily
fund for a fee.
Challenges: Multifamily is a different beast compared to single-family. You need to build
relationships with brokers and funds to move deals effectively.
Pro Tip: Even if you don’t get equity in the deal, you earn a solid fee while building your
reputation in the multifamily world.
The Best Strategy for You
So, which one of these strategies should you start with? Here’s a quick recap:
Multifamily real estate isn’t just for the big players like Grant Cardone and Brandon Turner.
With the right strategy, you can skip the line and get into the big leagues faster than you
think. Let me know in the comments which strategy you want to know more about, and we’ll
create a series of videos breaking down each one in detail.
Pace
Anyone wanting to dive deeper and discuss - please reach out to [email protected] and let’s set up a call and chat !!
Real Estate Investor | Multi Family | Passive Income | Business Development | Small Business Owner | Yoga Retreat Host | Yoga Instructor | Choreographer | Dancer | World Traveler
4 周Yup! That’s what I do!
Real Estate Investor, Software Developer, Musician, Husband, Uberfriend
4 周As usual Pace - very helpful info
I keep saying this is what keeps holding me back, I tried through another program but it always takes more investment, I got the track record and I got projects.. is there a answer??