- Clarity
- Get clear on your goal to buy your first apartment complex.
- Set a realistic date and commit.
- Focus
- Decide on the market where you want to invest in.
- Decide on an asset class. Vintage or new construction. Class A, B, C or D.
- Decide on your desired median income and population growth.
- Learn and master your market. Know the available inventory.
- Connect with brokers so they keep sending you on/off market properties.
- Tour available properties.
- Underwrite
- Understand numbers and learn how to underwrite.
- Ask the seller’s broker to provide you with a profit and loss statement (P&L), available rent roll and a copy of all expenses.
- Get an estimate of insurance and annual tax.
- Criteria
- Determine if you can add amenities such as washers and dryers
- Which expenses can be cut?
- Can you increase your net operating income?
- Close
- Be prepared to close. Do not waste the broker’s time if you are not.
- Have your credibility book and financing lined up.
- If you have never done a deal, partner with an investor that has.
Photo: Credit
Source: Jake & Gino