RENT Magazine Q4 '21

MAKING THE TRANSITION TO MULTIFAMILY INVESTING In this article, I will help you evaluate your options for transitioning from single family home investing to multifamily investing so that you can get into action and truly start scaling your portfolio. For starters, let’s begin by describing the most common scenarios for single family home investors, some of which may apply to you, some of which will not. When many people start investing, they buy a house where they live. They advertise it for rent, take all the calls, do all the showings, prepare the lease, collect the rent, deal with evictions (when needed), do the unit turnover. It sounds like you thought you were buying an investment when in reality what you did was buy yourself a second job. It’s still better than what 99% of people do to build wealth - which is nothing. But that kind of investing can exhaust you to death. Then you’re going to buy another one? Oy. But that’s what is most common. I was lucky as a new investor. I lived in an area that had really become too expensive to own for the purpose of cash flow, forcing me to seek other options. I learned about investing remotely. So, can I do all that management myself? Absolutely not. It required me to develop a new skill of leading a team remotely and using third party property management. It’s funny, because I remember being a new investor and being sold on the idea of “passive income.” Close on the property and just sit on the beach, sipping margaritas while collecting all that “mailbox money.” Ah-hem. The reality couldn’t be further from that scenario (particularly if you’re doing the business the way I described above). But even with investing remotely and using third party management, you can never just check out. Nobody will ever care about your assets, your cash flow or your retirement plans more than you do.

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