About this Video

• Video Title: The Rookie’s Ultimate Guide to Multifamily Real Estate Investing
• Channel: Real Estate Rookie
• Speakers: Ashley K, Tony J Robinson, Andrew Kushman
• Duration: 00:58:42

Introduction

This Real Estate Rookie podcast episode features Andrew Kushman, a multifamily real estate expert, discussing multifamily investing for beginners. The episode covers topics such as whether now is a good time to invest in multifamily properties, common mistakes to avoid, deal analysis, funding strategies, building a buy box, assembling a team, and crucial buying tips.

Key Takeaways

• Current Market Conditions Favor New Investors: Despite negative news headlines, the current market (at the time of recording) presents opportunities due to decreased prices and competition. Higher interest rates necessitate lower purchase prices, benefiting new buyers.
• Avoid Overly Optimistic Assumptions: Past market struggles stemmed from overly optimistic assumptions about rent growth and property tax increases. Conservative underwriting is crucial.
• Understand Loan Structures: Many commercial properties utilize short-term, floating-rate loans, making them vulnerable to interest rate hikes. Fixed-rate loans are more secure for long-term investments.
• Creative Revenue Generation: To offset potential downsides, explore additional revenue streams beyond standard rental income (e.g., selling timber, RV parking).
• Build a Strong Team: Multifamily investing requires a team including property managers, contractors, attorneys, and potentially a loan broker and insurance broker. Referrals are invaluable for finding reliable professionals.

The podcast speakers mentioned several websites for market research:

• Harvard Joint Center for Housing Studies (for a map showing population growth and migration)
• Esri (for demographic data)
• FEMA (for flood zone maps)
• Bureau of Labor Statistics (bls.gov) (for job growth, population growth, and income data)
• Rich Blocks Poor Blocks (.com) (for neighborhood-level median income data)
• Bright Investor (.com)
• Neighborhood Scout

Additionally, they suggested checking out the websites of large brokerage firms (Cushman & Wakefield, Marcus & Millichap, CBRE, etc.) for market reports. Finally, they recommended BiggerPockets forums as a place to connect with other investors and get referrals.