Multi Family Real Estate

JeffU

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Nov 10, 2007
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#1
I joined Rein back in January and look forward to becoming a sophisticated investor. The one avenue though that Iam having difficulty finding relevent information and education on is in Commercial Multi Family.
My Belize is to provide enough cash flow income through real estate to replace our business income, allowing us to take back control of our time in a relatively short time frame.

Any suggestions on how best to pursue that avenue?

Jeff
 

Dan_Eisenhauer

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Aug 31, 2007
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#2
Hi Jeff;

Multi-family is also my prime interest, as well. I hope that someday REIN will assemble a good MF package. HEY!!! Do any of you MF investors want to join me in putting one together?

In the meantime, there are several places for you to go for information or education. Here are a couple that I can think of off the top of my head:
If you are looking to learn how to manage ICI (Industrial, Commercial, and Investment), then REIC, and the CPM (Certified Property Manager) program is a good place to look. If analysis is your goal, then CCIM is the better place to go.

CCIM offers several free online investment spreadsheets, one of which I used until a couple years ago. You can find them here.

Both organizations offer online courses.

In addition, IREM (Institute of Real Esate Management) sells numerous real estate books. Those can be found here. The IREM courses are offered by the REIC in Canada. But, for some reason, we cannot buy books and publications online through REIC.

NB: If you use the CCIM spreadsheets, be aware that the mortgage calculations use the American mortgage system, which is slightly different than ours. There is a button to use Canadian calculations, but for some reason I cannot get that to work. I keep getting a message about my "macro setting", and do not know how to change that.

Not knowing where you live, Vancouver, and I believe Edmonton, have an annual Buildex Conference. At least in Van, there are numerous seminars on various aspects of real estate. Check to see if there is a Buildex Conference near you.

There are several excellent ICI investment analyzing programs on the market. A link to one is on the CCIM page. But, the one I use and really like is Investit Pro. It is produced here in Vancouver, and has numerous templates that are already set up for just about any kind of real estate investing you are doing... condo conversion, apartment ownership, mini-storage, industrial development, mobile home parks, and even shopping centres, etc. It will take too long to explain why I like this program. But, you can get a trial version of it on the website.

I hope this will be of some use to you.
 

Nir

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Dec 5, 2007
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#3
Find one that meets your cash flow criteria (i.e. 10% CAP) and put an offer!

doesn`t sound too difficult right? well, that`s because to be honest... it`s not, it`s easy!

ps. I`m sure as a REIN member you will follow the logic taught for finding a property so haven`t elaborate on that. good luck!
 

ThomasBeyer

Senior Forum Member
REIN Member
#5
QUOTE (JeffU @ Aug 29 2008, 09:57 PM)
I joined Rein back in January and look forward to becoming a sophisticated investor. The one avenue though that Iam having difficulty finding relevent information and education on is in Commercial Multi Family.

My Belize is to provide enough cash flow income through real estate to replace our business income, allowing us to take back control of our time in a relatively short time frame.



Any suggestions on how best to pursue that avenue?



Jeff


Specialize in an area and a type of property. Educate yourself.



How much money do you have to start ? $10,000 ? $10M ? $250,00 ? some avenues are more or less appealing for your personality and time frame and risk tolerance. I teach a course from time to time with Don Campbell .. but this is not really my business. There are some decent books. Do a search in this forum on "books" and "multi-family" and quite a few are mentioned .. if this is your path .. buy them ALL .. say for $300 .. and then apply the knowledge ..



Commercial real estate is a huge, multi-trillion $ business. Some aregue multi-family is residential and thus, NOT commercial real estate. You can't be an expert in strip malls, campgrounds, multi-family, office towers, industrial land, self-storage, trailer parks, land development, marinas, condos on ships in 8 provinces or 15 countries ! so pick a small sub-set of this "commercial" space .. and then a very small market with growth here in W-Canada or select US states or select small countries if you speak that language and come from there !



read this here .. and then send in some very specific questions so we can help you specifically !



http://myreinspace.com/public_forums/General_Discussion/61-4391-How_to_get_started_.html
 

DonCampbell

Investor, Analyst, Author, Philanthropist
Staff member
REIN Member
Aug 22, 2007
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#6
Don`t miss the September REIN Workshops in Alberta as we have a CMHC Underwriter presenting what is REAL in the financing world for Multi-Family properties.

In addition, there is a whole new series starting soon (taught by myself and other veteran Multi-Family investors) for REIN Members.
 

OlegP

New Forum Member
Registered
#7
I recently read Dave Lindahl`s book. He is a big proponent of apartment buildings, and at least from cash flow perspective owning multi-family properties seems to make a lot of sense. I am very interested in exploring what is involved in owning multi-family buildings further.

Dave Lindahl is offering a home study training on apartment buildings. Has anybody taken it and can offer an opinion on its quality? I called his office, and was told that the only aspect of the course not applicable in Canada would be the 1031 exchange rule. Although Mr. Lindahl seems to have positive reviews on the Internet, I am always cautions about buying American educational products and trying to apply their teachings in Canada.

I also was under impression that REIN sells a course like that too. Is anybody familiar with it?

Also, I noticed Don mentioned an upcoming series taught by him. Will be available in Ontario?

Thanks.

Oleg Pereslegin
canrusgroup@canada.com
 

mark186

New Forum Member
Registered
Oct 19, 2007
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London, Ontario
#8
I purchased the REIN F4 Multi-Family Gold Mine Program course from the recent "scratch & dent" sale and just finished listening to the CDs today. It was an introductory program from a few years ago and included a 100 page binder and four audio CDs. I think this is what Thomas is referring to. It was $60 which was a crazy cheap price in my view - the information was worth way more.

I`d suggest calling the REIN office and see if they have more of these for sale.
 

jamurphy

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Feb 18, 2008
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Vancouver
#9
Hi all,

Been searching the forum for books (or any other learning material) for multi-family residential investing (condos of 6 units and up).

There`s been some great posts......but no luck on the book front.

can anyone help me?

Many thanks indeed
James M
 

trourke

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REIN Member
Apr 14, 2008
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Ottawa
#10
Hi,

I too am very interested in investing in multi family. I am interested in Don`s course, any idea where and when the course will be ? Do the same fundamentals apply to apartments bulidings as single family homes when choosing which market to invest in ? Would you suggest that cash flow or future appreciation, ie lower cap rate, is most important when selecting a property ?

Tim Rourke
 

Shinto

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Registered
Mar 28, 2008
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#11
"The ABC`s of real estate investing" by Ken McElroy


Geat book. He started with just a duplex and now has more than 5000 units.


B
 

ThomasBeyer

Senior Forum Member
REIN Member
#12
QUOTE (trourke @ Sep 7 2008, 11:45 AM) Hi,

I too am very interested in investing in multi family. I am interested in Don`s course, any idea where and when the course will be ? Do the same fundamentals apply to apartments bulidings as single family homes when choosing which market to invest in ? Would you suggest that cash flow or future appreciation, ie lower cap rate, is most important when selecting a property ?

Tim Rourke
It depends what you want !

If you wish very stable, very reliable cash-flow for a life time, then you can buy in Vancouver or any large city at very low CAP rates. Combine this with very low leverage (say 50% or lower) and you have a very low, low risk yield.

I plan to do this when I am 80+ years old .. or maybe 90+ ..

If you wish to have higher yields (and I assume for now you are not yet 80, and thus, are looking for a higher yield) you must look in many smaller centers - with good growth characteristics - or in suburbs of larger centers or for properties that need work, or both .. with high leverage ! You will have much less to 0 cash-flow, but you will be able to improve the asset, get the rents up and thus, the value .. and then you either sell, or better: re-finance based on a higher value and higher rent. This is more work but has a higher yield.

It is extremely difficult to get a good going in yield, in a growing town, in a great location with rental upside. We have one full time person on that very important acquisition task, for perhaps 3-4 purchases per year. It is this difficult. Of course, you can find many overpriced properties in bad parts of town with high vacancies with little rental upside in many cities with little effort.


More on this strategy on our website .. book in progress .. but maybe a year or so ..

Send me a private e-mail if you wish and I may be able to help you on a specific project ...