OVERCOMING 3 CHALLENGES OF INVESTING IN MULTI-FAMILY FOR THE FIRST TIME

Moving Up to a Bicycle with Two Wheels

Taking the plunge from traditional investments to multi-family investments can be challenging.  Like moving up to a bicycle with two wheels.

Do you find it difficult to change?  I know I do.  In fact, you and I are not alone.  Change is hard for just about everyone.

Making the transition from stocks and mutual funds to real estate was huge.  And then, later, to move from single-family to multi-family was another great big step.  It took me a while before I pulled the trigger.  

As I look back, the movement through that change was challenging, but I am sure glad I did it.

How about you?  Are you thinking about investing in multi-family for the first time?  I will show you how to walk through three phases of change and actually do it.    With confidence.

You can make this change to multi-family too. Perhaps moving through these three steps or phases.

1. CHANGE STARTS WITH LEAVING A COMFORTABLE PLACE

If you have a retirement fund or savings or 401K or IRA, you probably have already become comfortable with investing in mutual funds or even individual stocks.  You might have even stepped gingerly into some small real estate investments.  You are in your comfort zone thus far in your investments.

“Your comfort zone is where your dreams go to die,” said a friend of mine.  Now, that is a pretty provocative statement.  But, it is true, don’t you agree?  Comfort can lead to complacency, even stagnation.

Growth in life, in all aspects of life, happens just beyond our comfort zone.  

Taking those training wheels off of my bicycle as a little boy was a bit frightening.  I might fall over.  And the first few tentative rides down the sidewalk in front of our home without training wheels were a bit scary.  But, soon I was off and free and could go so much faster and expanded my reach in the neighborhood.

Change starts with leaving a comfortable place.  In order to get to where you want to be you have to leave where you are.  This might mean more investment options to consider.  The change might be uncomfortable at first, but you can look forward to the rewards.

A new job, going out on a date for the first time, a promotion at work, moving from one community to another.   These and other changes take us from where we were and thrust us into a whole new world.  This new world can include many possibilities and opportunities.

Making your first multi-family investment will take you out of your current comfortable investment place.  Recognize this.  It is part of the difficulty, part of the challenge.  It is normal.  

The first part of any change is leaving something behind, saying goodbye to something, stepping out of comfort into the second part of change.

2. CHANGE TAKES YOU ON A MESSY, SCARY JOURNEY

The second part of change is the messy middle between where you are now and where you want to be.  

In this case, investing in multi-family assets.  We see the benefits. We are aware of the risks, but we understand the benefits outweigh the risks.  So, we are seriously considering making the move, taking the step, investing for the first time in apartments. 

And we find ourselves in the turbulence of our thoughts and feelings.  Do I know enough?  This is scary?  What if…?

My personal messy, scary journey lasted about 2 years.  It doesn’t have to take that long for you.  

I wanted to be an operator, a syndicator of multifamily properties.  

It is a whole lot easier to be a passive investor.  Simply, find an operator you can get to know, come to like, and trust.  This shortens the distance between where you are and where you want to be.  

You won’t have to spend a lot of time learning.  Learn just enough to gain a new sense of comfort and understanding with this new asset class.  

Take stock of what is going on in your self-talk, your inner game, your mindset around this.  It can be challenging, for sure. It was for me.

The first step was to step just beyond your comfort zone in even considering a multi-family investment.  

The second step is to investigate and explore this new asset class.  Get to know a few operators.  Develop some confidence that you know enough.  It may feel a bit messy as you make this move. This is a totally normal and expected part of any big change.

The final step is to arrive where you want to be, actually make an initial investment.  Read on.

3. CHANGE BRINGS YOU TO A NEW PLACE, AN EXPANDED PLACE OF COMFORT

My comfort zone has expanded in so many areas of my life.  I graduated from training wheels to riding without them.  I moved from bicycle to automobile.  I stepped out from mutual funds to single-family to multifamily.

The third phase begins when you actually take action, arrive at your destination, pull the trigger, make your first multi-family investment.  And reap the benefits of this new, expanded investment world.

Of course, some turbulence will continue after you make this first investment in multi-family.  Be prepared.

I took some spills on my bicycle.  I’ve been in a few accidents in the car. This last year with Covid-19 has been challenging with our real estate investments.  But, I have learned I can handle it, and get through the turbulence.  

You will get through the third-phase challenges, too.

Remember, you can invest in multifamily even if you work a full-time job, even if you don’t want to be an operator.  There are ways, with many protections for you.  For example, becoming a passive investor with an operator like Attune Investments.

YOU CAN TAKE THIS STEP INTO A MULTI-FAMILY INVESTMENT.  HERE IS HOW.

We covered these three steps from another angle in last week’s blog.  And I hinted at them above.  To be a passive multi-family investor, do these three things…

  1. Find an operator, a syndicator.  Get to know them.  Spend some time with them.  Ask them questions.  Find at least one you know, like, and trust.
  2. Get just enough education in multi-family, as quickly as you can.  Learn some key terms.  Ask some more questions.  Get comfortable in this new space.
  3. Pull the trigger.  Make your first investment.  Then keep learning.  Do it again and again. 

KEEP IN TOUCH

Go to our Facebook Page https://www.facebook.com/AttuneInvestments  We post new material a couple of times a week.  You can learn about us and about multifamily investments.  Like the page and Facebook will alert you to our new posts.

Join our Attune Investor Club at https://www.attuneinvestments.com/join-the-club-2/  This is a more select group of people like yourself who are interested in learning more, getting to know us more personally.  We look forward to getting to know you better.  

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