“Whether you think you can or you think you can’t, you’re right.” — Henry Ford
A question I get a lot from people is how to get started in multifamily investing.
What should I do?
What’s step one?
Sometimes they are very scared because it’s brand new territory.
It’s like they’re living in a 60s horror movie!
Or, on the other hand, they might have the opinion that the process will be very easy.
They think success in multifamily will fall into their lap without much work.
Neither of those are true.
It doesn’t have to be scary but it won’t necessarily be easy.
But in either of these instances, it’s important to think about what the payoff will be.
For me, I was able to leave my great corporate job and retire with passive income.
Right now I create content while closing deals on my own and living off my investments.
I’m also able to help other people get into these investments.
That’s super exciting!
Now I use my free time to travel.
I recently got back from a trip to Europe.
I love going to different places and also spending time with my daughter.
Investing has opened up time for me to do the things I want to do and not live on someone else’s timetable.
Think about what freedom of time would open up for you!
Let’s talk about how to get you started:
1. Commit to Learning
The first thing some people think when they get started is that they’re not going to do anything.
Somehow by watching a video or going to an event, passive investing and multifamily knowledge will simply come to them.
They don’t think they’ll need to work much at all.
That’s just not true.
Carol Dweck wrote a book called Growth Mindset.
The book says it’s important we have a specific mindset that says:
Just because I don’t know the information now doesn’t mean I can’t learn it.
If we make a decision to learn, it will change everything.
The first thing is you have to commit to learning.
You have to make a commitment to learn how to do all of this.
It will take time and effort.
But as you do put in that time and effort, learning will be a valuable skill that will change your life.
Tony Robbins has a quote that says: “It is in your moments of decision that your destiny is shaped.”
It’s a pretty intense quote in a way.
But he is really saying when you make a decision, everything changes from that point.
If you commit to learning something, no matter how long it takes, you will get there.
I promise if you commit, it will change your life.
It’s like Brian Tracy says: “If you want to earn more, you’ve gotta learn more.”
There’s a direct link between committing to learn passive investing and developing a way to gain more income.
I run a real estate meetup in Pasadena, California on the first Wednesday of the month.
We talk about multifamily investing.
At these meetups, we talk about two things that help you grow as an investor.
The first thing is education.
I’m not talking about getting an MBA or PhD.
Those things can be helpful, but what I’m talking about is going to events and seminars.
When you meet new people at a conference or meetup, you ask questions and talk to them and learn.
Maybe somebody speaking on a particular topic you’ve never heard about such as land flipping or coffee farms in South America.
I didn’t know that existed until somebody told me about it.
There’s all kinds of ways people make money in real estate.
You can learn about them by reading books and listening to podcasts.
(Check out our Mailbox Money podcast!)
We’ve got monthly investor virtual events where we talk about topics like inflation and multifamily and those have been awesome.
We’ve got a lot of great feedback on those!
The second thing is to help you grow as an investor is networking.
When you go meet them, you hear their story, you hear what they’re invested in, and you hear about mistakes they’ve made.
In fact, I encourage you to ask about their mistakes.
That’s a great question!
You can ask somebody about the one thing that did not go according their plan
What’s something they thought would go well and didn’t?
Those are incredibly educational experiences.
When you go to these meetups and conferences, it’s important to ask questions.
Go in with an open mind, be willing to talk to people and learn about what they’re doing.
Some of those contacts can become mutually beneficial relationships.
You might even find your next business partner!
Before we move on, I want to tell a story about a guy that set up a call with me recently.
He was in the Midwest and wanted to be an active operator.
He hadn’t done any big deals yet.
I asked him if he had ever been to any conferences.
He said that he hadn’t.
When I asked why not, he said he likes staying at home and wasn’t a big fan of conferences.
I told him that he would get so much out of going to a live conference.
You can actually do a lot of stuff virtually, like watch YouTube.
(Check out our YouTube channel here!)
But at the end of the day, there’s no substitute for talking about investing face-to-face.
I encourage you to do that!
Make a commitment to learn in whatever way you can and keep learning.
2. Take Action!
Once you’ve made the commitment to learn, the second thing becomes even more important.
I would say it’s more important.
You have to take action.
If you don’t take action, all the learning you do doesn’t mean anything.
There was someone at my meetup that I’ve known for a couple years.
He would talk about how he was going to get into commercial investing and do multifamily.
He had a lot of aspirations.
But he never took any action and so it never happened.
Doesn’t that make you so sad?
You’re killin’ me smalls!
So many great ideas, but you have to put in the work to make them happen.
It’s been said that the journey of a thousand miles begins with the first step.
The first step is really to take action.
Commit to not just doing something, but actually start doing something!
That’ll push you towards your goal.
There are a couple ways you can do this.
You can start taking action.
Get on LoopNet, a site that allows you to look at deals.
Analyze these deals.
There are some folks that have deal analyzer tools.
Whatever method you use, start looking and evaluating and learning how you can grow.
By taking those actions, you will learn what a good deal looks like.
You can contact sponsors or people that do deals like us.
You can get on people’s deal lists.
Podcasts, events, and networking are great ways to find out about these.
You’ll find out when those passive multifamily investing deals are available.
If you look at 5-10 different passive deals, you will develop a sense for what a good deal looks like.
You can also find deals that really fit your parameters.
You don’t just want to do any deal.
When you look at least 5-10 deals, you will have a picture of what a good deal looks like.
That will set you up for the next step:
Step number three is to invest.
Get out, find a deal, and do it.
Picture me with a drill sergeant hat on telling you to invest, invest, invest.
After you’ve looked at a number of deals, you need to pick a deal and invest.
It’ll probably go just fine.
Worst case scenario, maybe you lose a little bit of money.
But the big thing is to learn the process.
We can get so stuck in analysis paralysis, where we look at so many deals and don’t actually take action.
If you take action, I promise, you will learn a lot.
Keep your eyes open and pay attention.
If you’re interested in being active or passive, it’s very similar.
If you’re interested in being active, we do multifamily deals.
We can help you on your path.
We’ve got about $150M in real estate.
It all started with taking action.
When I made a decision to change my financial position, I wanted to do things differently.
While I was working full-time, I started reading every book I can find on multifamily.
I went to every event I could.
I attended meetups.
I ended up starting my own meetup.
At that first meetup, I met an investor who wanted to invest!
I found a partner at that same event as well.
I brought them together and completed my first deal.
You never know what will happen when you make a difference in the lives of other people and in your investing.
It’s very similar to passive investing.
It’s going to events, watching webinars, reading blogs like this, networking with other investors.
One of the best relationships you can have are the ones with other investors.
You can share stories of who you wouldn’t invest with and who you would.
You can share in investment victories.
All of that is really important.
Why is that?
As a passive investor, you want one or two investment groups that you can invest with over time.
You want to develop the confidence to know your money will generally double every 5-7 years.
Things go faster and slower, but if you can find those groups, you will achieve financial freedom.
Get out there and go for it!
Now I want to hear from you.
What decision are you making today to carry you forward into the future?
What will you do after reading this blog?
When you share your answer, even if it’s in a comment, you’re held accountable.
So put something in the comments below and let’s start a conversation!
Before you leave, make sure to check out our special report about investing. It compares the stock market to real estate, and it also includes how the pandemic affects your investment future.
If you are interested in investing with us, we are happy to answer any questions that you may have. Join our investment club today and we will be in touch.
Disclaimer: I am not your investment advisor. This is for educational purposes only. I am not giving specific advice on what you can do. I am simply giving my opinions.