Investing in Multifamily Property? Here Are Three Steps To Get You Started

Posted on September 3, 2020

Multifamily housingAccording to recent findings from Gallup, real estate continues to rank as the top investment pick for the majority of Americans (35%), ahead of stocks and bonds (21%), savings accounts (17%) and gold (16%). For real estate investors looking to move past single-family homes, multifamily homes are a natural next step. Multifamily properties can elevate your income and build your net worth faster, if done correctly.

For those ready to take on the responsibility, here are three steps to get you started on your first multifamily investment.

Educate Yourself

Investing in real estate is not impossible, but it does require proper knowledge of the real estate market and real estate business. Do not jump into the deep end before doing your research. Ensure you know what responsibilities come with owning a multifamily property. Consider if multifamily investment—over single-family—is really the best move for you in your current situation.

Find Your Property And Ensure A Quality Real Estate Deal

As opposed to finding single-family residences, hunting for multifamily property requires far more than browsing Zillow from the comfort of your home. Investors should be prepared for ample due diligence.

When you find a property you like, consider the following to decide if you should pursue it further:

  • Location—this should be on the top of your checklist. Ensure this property is in a location desirable to renters.
  • Number of units—along with the number of units, consider the number of rooms.
  • Potential monthly income—verify the rental prices and potential income that will be generated from your selected property.
  • Estimate of important costs—are you considering the down payment, mortgage payment, and repair costs? If you’re not, you should be.
  •  Seller’s motivation—gain an understanding of who you are dealing with and why they are selling the property. This will prove beneficial when it comes time to close the deal.

Make The Offer

Private, conventional and commercial loans—there are several financing options for investors. Speak with your lender and identify what type of loan works best for you.

Once you’ve secured financing, negotiate the deal with confidence. Equip yourself with knowledge of the seller’s needs, potential objects and prepared responses. Familiarize yourself with the ins-and-outs of your offer and have a firm walkaway number.

For more guidance on multifamily investments, contact CGI Real Estate Investment Strategies at info@cgiplus.com.

More CGI+ News & Press

Gidi Cohen’s CGI+ plans 20 stories of apartments in Hollywood

Gidi Cohen’s CGI+ plans 20 stories of apartments in Hollywood

CGI+, the investment and development firm founded by Gidi Cohen, has filed updated plans for a major apartment complex in central Hollywood. The project would be located at 1830 North Cahuenga Boulevard, at the corner of Cahuenga and Franklin Avenue, a prime Hollywood location a few blocks north of the Hollywood Walk of Fame.

read more
Best Bosses | Here are Real Estate Forum’s picks for Best Bosses in 2023.

Best Bosses | Here are Real Estate Forum’s picks for Best Bosses in 2023.

The last year has not been easy for the head of a commercial real estate company. Inflation and the Fed’s response, as well as trends that emerged from the pandemic, have clearly had an impact on the industry across all of the sectors. Besides the effect of, say, ongoing remote work on the beleaguered office asset class or the slowing pace of rent increases in multifamily, these executives have also had to navigate an increasingly difficult capital markets environment. I have some bad news for this group: the near-term future doesn’t look any easier. Enter our selection of Best Bosses this year. This year’s picks were made at least in part based on their resiliency and ability to position their companies for future growth, whenever that might occur. We are confident these strengths will see them through what could be choppy waters ahead.

read more