Real Estate Investors Should Start With Friends and Family as Their Investors | 5min snip from BiggerPockets Real Estate Podcast

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711: Is This the BIGGEST Multifamily Opportunity in 10 Years? w/Andrew Cushman and Matt Faircloth

BiggerPockets Real Estate Podcast

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Real Estate Investors Should Start With Friends and Family as Their Investors

Most real estate investors should and do start friends and family as their investor base. Treat them like investors, whether they're your friends and family or not. If you've already got eight or 10 people in the pool with you, then you don't have to go tell everybody else that it's your family. You can just say, hey, I've already got 70% of the way there. It's going to be easier to get people for LP if you don't know that you are well-liked by others.

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Multifamily real estate investing was almost impossible to break into over the past few years. Even those that had been in the field for decades were finding it challenging to get offers accepted or deals underwritten. Investors were throwing in almost unbelievable amounts of non-refundable earnest money, going well over asking price and analyzing deals at lightning speed, which often led to mistakes, not more money. But the tables have turned, and now, thanks to high interest rates, the buyer is in the driving seat.

And how could it be a multifamily episode without Andrew Cushman and Matt Faircloth? These two expert multifamily investors have been buying apartments for decades and helping others do the same! In this episode, Andrew and Matt break down what has gone on in the multifamily markets, why cap rates haven’t kept pace with interest rates, and what buyers can do now that sellers have lost most of their bargaining power. You’ll also get to hear their multifamily predictions for 2023, how far they expect prices to fall, and what you can do to start or scale your multifamily investing this year!

Then, Andrew and Matt take questions from the BiggerPockets forums and live Q&As with new multifamily investors. These topics range from property classes explained to raising private capital from investors (who aren’t your mom) and the risks and rewards of investing in smaller markets. Whether you’re interested in duplexes, triplexes, or two-hundred-unit apartment complexes, Andrew and Matt have answers for you!

In This Episode We Cover:

The mortgage and cap rate battle and how the two are unbalanced in 2023

The multifamily buyer’s market and why now is the time to aggressively chase deals

2023 housing market predictions and what multifamily investors can expect

How to start, or scale, your multifamily real estate portfolio this year

Long-distance real estate investing and assessing a property market from afar

How to raise money from private investors and expanding your network

The hidden dangers behind investing in a small, tertiary markets

And So Much More!

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