- Brandon Turner achieved financial independence at age 24 through real estate investing.
- He now runs BiggerPockets, an informational and networking resource for real estate investors.
- In a recent webinar, he listed his top tips for buying a first multifamily property.
If you’re just getting started in real estate investing, Brandon Turner recommends you first buy a small multifamily property — something with two, three, or four units.
There are a few reasons for that, he said during a recent webinar held on his BiggerPockets website.
For one, they drive more cash flow than single-family homes. They’re also typically available for better deals than single-family properties because individuals looking to buy single-family homes to live in are willing to pay higher prices than investors are on a multifamily property.
“Ninety-five percent of the world is not looking for what you’re looking for,” Turner said.
While multifamily properties are big enough so that investors don’t have to compete with homebuyers, they’re also small enough not to have to compete with big financial institutions, who are typically looking for larger properties. They do, however, open the door to getting into bigger properties, which typically provide bigger scale returns, he said.
It can seem like an intimidating endeavor to find and then buy a multifamily property despite these benefits. New buyers must also ensure that deals make financial sense in a market where home-price growth is hot but rent appreciation is not yet keeping up pace. During the webinar, Turner — who himself owns over 1,500 units and became financially independent at age 24 — gave his top tips for finding properties and then financing their purchases.
6 tips for finding multifamily properties
Turner said his tip for a majority of new investors is to find a real estate agent in their area that can help them find a deal. While the deal likely won’t be a steal that’s bought below market value, it will help beginner investors get their feet in the door to getting their portfolios off the ground, he said.
Otherwise, investors can look off-market. One way to do this is to simply drive around an area looking for appealing multifamily properties, look for the owners of the address through public records, and then send them a letter asking if they’re looking to sell the property or any others they own.
Another off-market strategy is to use sites like Facebook Marketplace or Craigslist to source deals. Then there is using direct mailing companies, which will send inquiries to the kind of property owners one is looking to buy from. Using the site …….