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Investing in Apartment Complexes
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puckerman Offline
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Investing in Apartment Complexes
Does anyone here have any EXPERIENCES with either passive or active investing in apartment complexes? I attended a workshop lead by a guy who has been doing a lot of it, and he has own network of mentees who are also doing this type of investing. These are complexes of probably 20 apartments or more.

Some people sponsor deals, and others simply invest in the deals. There are regulation on these investments, and they are regulated by the SEC. For example, the SEC encourages "accredited investors." You can also be a "sophisticated investor."

I just wanted to see if anyone had EXPERIENCE doing this. What were your experiences? How do you screen people that you deal with?
11-20-2019 06:41 AM
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Hypno Offline
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RE: Investing in Apartment Complexes
My first screen is if they can master the search function on a message board
11-20-2019 01:34 PM
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Bluebird Offline
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RE: Investing in Apartment Complexes
I wouldn't trust anyone who has a "workshop." People who are killing it in RE don't need to find investors that way. IF I were you I'd take some classes through CCIM or ULI to give some knowledge of the industry. These classes are a little more hands on compared to your standard books (i.e. Crushing it, Poorvu's books) and they also help you network with people who know their stuff.

Listings on sites like loopnet are a good thing to check, though you'll be hard pressed to source a deal from a site like that. You're better off building relationships with local brokers who deal in the size you're after/ sourcing the deals yourself.

The bigger pockets forum is a entry level way to understand the industry, though they aren't very sophisticated.

SEC regulations primarily deal with syndication, which I have never done. In my book its a lot cleaner to get debt/ mezz financing to do a deal, though the equity requirement on you end is a lot greater.

As far as screening goes: just avoid the Grant Cardone types; which sounds a lot like the sort of guy who threw this workshop
11-20-2019 04:33 PM
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gework Offline
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Post: #4
RE: Investing in Apartment Complexes
Tail Gunner seems to have some expirience in this area. See here: https://www.rooshvforum.com/thread-60358-page-24.html

I've seen other mentions of the topics. See the search.

RatInTheWoods, who has seemingly left, also had experience.
11-20-2019 04:58 PM
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Tail Gunner Offline
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RE: Investing in Apartment Complexes
(11-20-2019 04:58 PM)gework Wrote:  Tail Gunner seems to have some expirience in this area. See here: https://www.rooshvforum.com/thread-60358-page-24.html

I've seen other mentions of the topics. See the search.

RatInTheWoods, who has seemingly left, also had experience.

I have no experience in complexes of twenty apartments or more. I also stay away from any SEC-regulated investment deals involving real estate, versus owning the underlying asset. I also do not invest in the U.S., because most everything is vastly over-valued because of artificially low interest rates that artificially drives up asset values, including real estate. Do not take my word for it, just ask Warren Buffet:

Quote:"In the years ahead, we hope to move much of our excess liquidity into businesses that Berkshire will permanently own," Buffett wrote. "The immediate prospects for that, however, are not good: Prices are sky-high for businesses possessing decent long-term prospects."

https://www.foxbusiness.com/markets/warr...hat-to-buy

Notice that Buffet did not say that prices are merely high or inflated, but "sky-high." No thanks.

Of course, with real estate that has a positive cash flow it does not matter whether the value of the real estate temporarily drops fifty-percent as long as your rents remain stable and you are willing to wait for years for the market to recover. I prefer to buy at market lows for asymmetric trades.
(This post was last modified: 11-21-2019 12:57 AM by Tail Gunner.)
11-21-2019 12:48 AM
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Simeon_Strangelight Offline
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Post: #6
RE: Investing in Apartment Complexes
I wouldn't go into those investment deals. I have rentals myself and it's always individually sourced.

If you research the issue, then some successful investors offer a guideline of how to buy properties and what to look for. The criteria are many - at least 20-30 have to be met in order to be a good viable rental property - central, small, etc.

Especially in the current times of mass migration and shortage of living space in large cities it's a good business.
11-22-2019 04:24 AM
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puckerman Offline
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RE: Investing in Apartment Complexes
That other thread does have some good stuff there.
(This post was last modified: 11-25-2019 08:42 PM by puckerman.)
11-25-2019 08:40 PM
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