A quick google search will reveal plenty of people searching for information on multifamily investing and how to determine if you have a good multifamily deal. BAM knows that it can be easy to feel out of your element when looking at the industry; that’s why we compiled some of BAM founder and CEO, Ivan Barratt’s, pointers for anyone considering getting into multifamily investment.

Do Your Homework & Be Patient

Ivan often talks about “paying tuition” – that is, the costs of learning in the industry along the way. Ivan had a front row seat to the 2008 crash, and came away with a crystal clear focus on what he wanted to go after as well as what he didn’t. He realized that cash flow trumped finding the next big deal, and he advises both being diligent and patient to anyone interested in getting involved in multifamily investing. While it can be easy to become enthusiastic and rush what may seem like a good deal, it’s vital to do your due diligence and be patient when considering any multifamily deal. There are plenty of people looking for multifamily deals; however, it takes discipline and patience to find the true good deals among all the opportunities you investigate. Ivan advises that anyone considering getting into multifamily investment should underwrite 100 deals in order to develop a “gut feeling” of what makes a good deal. Over time you’ll begin to recognize what looks right in a deal, as well as what doesn’t.

You May Have to Do What You Don’t Love to Get to Do What You Do Love

Ivan has expressed in previous podcasts that his first love was raising capital and working with investors, but he knew he needed to “build a machine” to get him where he “needed to go” – and he started with property management. Ivan noted that at one point or another he had worked every position in the company, so he had perspective when it came to his executive team and their challenges. Ivan is now in a great position to continue working with investors and raising capital – what he wanted to do from the start. You may have to work your way up to doing what you want but by staying focused and dedicated you can get there.

Build Relationships & Keep Learning

Ivan has talked in many podcast appearances about networking and relationship building. He has fairly simple methods behind creating a strong network, including being honest, doing what you say you’ll do, and treating people well. For those looking to pick up valuable insight, networking with other multifamily investment pros is a way to learn from those already experienced in the business. Another important piece of Ivan’s successful puzzle is continued learning: he recommends that you set aside time each day to read industry literature, multifamily investment material, listen to podcasts, and keep adding to your knowledge base.

Although the field of multifamily investment is challenging and exciting, it can be overwhelming if you don’t have the right guidance. Talking to experienced multifamily industry professionals who work with investors and finding deals every day can be your first step to getting into real estate investment. To connect with Barratt Asset Management, click here.