In the previous episode titled, “How to Expand Your Mind To Go BIG with Multifamily Investing,” I make the argument that bigger is better. I stand by that, so please listen to that episode before you listen to this one! However, if you go through the exercises laid out in that episode and still don’t feel comfortable with going big, I have a Plan B: duplexes
In this episode, I will lay out a plan for you to do a deal on a duplex in 90 days. And if that’s what it takes for you to get into multifamily investing, then DO IT. Buy that duplex. Will you retire from it? No, but at least you’re in the game.
Why Duplexes Are the Perfect Way To Get Started With Multifamily Investing
[3:22] Reason # 1: There’s more of them and they’re easier to find
- Watch tutorial video and download spreadsheet here: http://www.themichaelblank.com/duplex
[4:39] Reason # 2: You need less money
- Even if you need to raise the money you won’t need near as much
[5:01] Reason # 3: They’re easier to analyze
[5:19] Reason # 4: You don’t need to build a huge team
[6:06] Reason # 5: Cash flow per unit tends to be better than for larger MF properties
- Easier to see $200-$300 per month, per unit in positive cash flow
[7:05] Vision setting is important but don’t let your vision stop you from achieving your goals
- Set achievable 90-day goals
- 90 day goals are long enough to achieve something meaningful but short enough for you to see it happening
- Set goals that you can achieve if you hustle.
[8:08] 90-day plan to buying your first duplex
[8:51] Week 1: Educate yourself
- Read books
- Take courses – Find mine HERE
- Attend a seminar
[9:35] Week 2: Determine investing area
- Less important than in larger multifamily investing
[10:27] Week 3: Analyze 5 deals
- Download deal analyser spreadsheet here: http://www.themichaelblank.com/duplex
- What are the comps?
- Rent analysis by location
- What’s the cash on cash return?
[17:58] Week 4: Start raising money
- Sample deal package
[19:04] The last two months
- 1 investor meeting per week
- Make 5 offers per week
- Your goal is to get ONE accepted