111: How to Buy Your First Large Multifamily Apartment with the Kitti Sisters
APPLE PODCASTS | SPOTIFY
If you’re like most people, buying your first multifamily apartment can seem impossible. But don’t worry, we’re here to help and break it down step-by-step to make it happen.
In today’s episode, we’re going to show you how to buy your first large multifamily apartment using simple techniques that anyone can follow. Stay tuned!
Let’s get into it. 👇👇
What’s a large apartment?
Before we jump into helping you buy your first large multifamily apartment, we should probably define what we consider large multifamily apartments.
You may own or have heard of people owning 5, 6, 7, 10, or even 20-unit apartments. But for us, when we are talking about large multifamily apartments 🏢, we are talking about 200 and 300+ unit apartment complexes with a purchase price close to 70, 80, or even 100 million dollars. We know what you are probably thinking…holy! 😲😲
We know, the figure itself may feel out of reach for you. But here’s the thing, you don’t have to have hundreds of millions of dollars in order to buy your first apartment. Not even close. When you buy your first apartment through apartment syndication, you along with other partners can pool your resources together and take down these larger assets.
So why do we prefer these larger apartments?
Look, the beauty of buying a large multifamily complex lies not only in the fact that it can generate more revenue and give you greater returns, but also in its strategic benefits. ✨
For example, larger apartments come with better economies of scale, meaning that the cost of running and maintaining the building becomes much more affordable.
In addition to that, when we sell the property, we open up the possible buyer pool greatly because let’s face it, more investment groups are looking to buy nicer and larger properties.
Not to mention, all the tax benefits from these large apartment complexes, which is too detailed to get into it here.
4 Steps to Investing in Your First Apartment Syndication
Cashflow Multipliers, Let’s break down what buying your first apartment through apartment syndication looks like.
Here are your 4 steps! ⏬
Step 1️⃣: Determine your investing goals. Are you looking for a long-term or short-term investment? What’s your time horizon?
Are you looking for a cash flow play or you want to invest in investment opportunities that yield more tax benefits?
How much do you have to invest? What’s the monthly Freedom Metric you want to hit. Freedom Metric is when your cash flow exceeds your expenses.
Step 2️⃣: Find your squad / join an investment club – This is the most important, crucial one in your entire investment process — because if you don’t have the right team, you may not get the fantastic returns you’re expecting.
The right expert team is one that you really get to know and trust, and it’s a team that has the expertise you need.
And this is where the Kitti Freedom Club comes in! 👈
Yep, we know to be a well informed investor you got to know all things apartment investing, from vetting your team, getting investment opportunities flowing to your inbox, understanding all the key numbers / metrics to identify great deals, verifying the numbers done by the sponsorship team, knowing all the red flags to look for, and how to get over all the FOMOs and really stick to scaling your real estate portfolio.
If you do this step right, the next few steps should be “hassle-free” as you have already done your leg work upfront by doing the necessary due diligence.
Step 3️⃣: Invest in an investment opportunity – AKA secure your sweet spot.
A quick note here, one thing is that the opportunity to invest in an investment opportunity is on a first-come, first-served basis. This can be especially important for deals in hot markets with strong sponsorship teams.
So there are 2 important parts here. First is to review the PPM – Private Placement Memorandum and next is to fund the investment.
Review the PPM is the first official AKA – legal step to invest in the investment opportunity. This is a legal document, often quite lengthy, that goes into detail about the investment opportunity, the risks involved, and your role as a passive investor in the deal. 😍😍
As part of signing the PPM, you’ll also need to decide how you want to hold your shares of the entity that’s holding the asset. Once you’ve completed the PPM, the next step will be to wire your fund.
Step 4️⃣: Sit back and relax, and watch your money grow. You did it! 🤩🤩
Once you and your team take over the ownership, 100% of the work will be done by your team, this is why it’s truly passive.
Each month expect communication on updates on the financial, and any CAPEX projects going on, etc.
The Big Picture
So, if you’re looking for a solid investment opportunity that doesn’t require too much hands-on involvement, 🏢 large multifamily apartment syndication may be the perfect option for you.
As you can see, buying your first large apartment complex isn’t as daunting or scary as you may have thought. All it takes is partnering with the team, and you too can enjoy all the benefits and perks of owning a large apartment complex without having to deal with any of the hassles.
You can do it, and we are here to help! For more information on how to become financially secure and independent, all you have to do is join the Kitti Freedom Club.
Thanks for tuning in – Cashflow Multipliers! 🙏
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