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Multi-Family Real Estate Investing

Investing in multi-family real estate homes

If you're thinking of investing in a multi-family home as a real estate investment in Orange County, California, you're definitely on the right track. It can generate a solid monthly income for you, pay for its own upkeep and expenses, and even for property managers if you have more than one income property. As if all that isn't good enough, the market right now favors multi-family real estate investing, and is likely to do so for at least the next five years. Simply stated, everyone needs a place to live, so why shouldn't you be providing it and making money by real estate investing?

How Easy Is It?

There's a bit of a learning curve. So if you want to get involved in multi-family real estate investing, you're going to have to learn a few things. You're also going to need money, and the willingness to devote a certain amount of time.

If you already have knowledge, money and time, go for it. If you don't, you might want to consider partnering with people who are engaged in multi-family real estate investing.

Let's talk about what you need.

1. Money

If you're thinking in terms of "no money down," you'll likely end up being disappointed. Ideally, if you are serious about taking on multi-family real estate investing, you should be able to provide a down payment of at least 25%. If you're planning on going it alone, this can be a huge chunk of change.

2. Time

If you're going to be involved in multi-family real estate investing in Orange County, California, you have to a) find it, b) evaluate it, and c) manage it effectively. You're going to have to do everything - look after tenants who are moving in and moving out, look after maintenance, find new tenants when old ones move out, and let's not even get started on the paperwork involved. If this doesn't sound like something you're up to, then you have two choices: a) hire a property manager for multi-family real estate investing, or b) find something else to do.

3. Experience

Don't discount the complexity of multi-family real estate investing. You know all that stuff we just mentioned? It gets worse. If you don't have the experience, you're going to be dead in the water. And if you can't prove to a lender that you have the experience to deal with the myriad issues of property management, they're not going to give you any money.

Now You Know

Now that you know what you're in for, you need to decide if you really want to go it alone, or if you should partner with others who have the skills for multi-family real estate investing that you might be lacking. If you have a lot of money to invest in real estate, you might be able to just be the "power behind the throne," and sit back and reap the rewards while others do the actual work. Maybe you're great at negotiating deals, and that's your value to the partnership. That's fine. But before you dive headlong into multi-family real estate investing in Orange County, California, know your skill level, and know if you have to hand off some tasks to other people who might be more qualified in certain areas.

The Market

We're not trying to discourage you, because right now, when it comes to multi-family real estate investing, the market is hot, hot, hot! And it's likely going to stay that way for the next five or so years. If you're going to get involved in multi-family real estate investing, do it now. But make sure that you have the money, the time, and the experience (or the willingness to hand off the experience component to those who really do have it). These are the big three, and if you have them, then get on board right now before you miss the boat.