Skip to main content
6 answers
6
Updated 1437 views

What does it take to build and run a new apartment complex?

Hello,
I've all but decided that apartment complex ownership is the business I want to start with as an entrepreneur. I'm currently working toward finishing my associate of arts degree, taking business/economics/accounting classes to assist me with the technical aspects of starting the business. I plan to graduate in spring of next year. After graduation, I'm going to allow myself some time to save up money for a down payment on a loan. Along with these plans, I have quite a few ideas about how I want to run my business (between floor-plans, amenities etc.) but to be quite honest I'm not sure where to go from there. I may ask more questions later if I need more detail on a particular aspect.
So my questions are these;
What major expenses may I be forgetting or overlooking in the planning process?
What advice do you have for first-time landlords?
What are some tips or red flags on choosing builders, contractors and inspectors?
What advice do you have for choosing a location?
What is some advice on saving money on property?
What are some ways I could save money on initial investment?
What things should I not cheap out on for initial investment?
What financial qualifications are needed for such an big loan?
How long should I wait before hiring people to run the business for me?
#architecture #real-estate #real-estate-investing #apartments #apartment #landlord #property-insurance #property-management #career-details

+25 Karma if successful
From: You
To: Friend
Subject: Career question for you

6

6 answers


2
Updated
Share a link to this answer
Share a link to this answer

Alex’s Answer

Hey Brittany,


I looked at a lot of different questions on this website to answer and thought I could add the most value to you in answering this one given my experience in owning/ running apartment complexes myself. This is the best business in the world to get into in my opinion.


My favorite resource to learn about investing in Real Estate is a podcast called, Bigger Pockets. I encourage you to check this out as it's where I learned a lot of the things I have implemented and know how to do now. My favorite real estate book that I HIGHLY encourage you to read is called "Rich Dad, Poor Dad" by Robert Kiyosaki. This book changed the game for me!



  • Alex Pascale

Thank you comment icon Hi Alex. Thank you for posting this great advice for Brittany. I've removed your contact information from the post, but left the rest of it as it stands. To protect the students community members are not allowed to post personal contact information on the site or use CareerVillage.org to arrange off-site communications. If you have any questions about this policy, please do not hesitate to contact us using the hello@ email address below. Thank you again for your recommendations of resources for Brittany. Great help! Jared Chung, Admin
2
2
Updated
Share a link to this answer
Share a link to this answer

Mitch’s Answer

Brittany,

The best education in the multi-family real estate profession is to get out there and spend a few years working for a real estate company that develops and manages multi-family real estate. You will learn practically how its done. No amount of textbook education can provide that required experience.

Even if you decided to go it alone, you will likely need some investment from others to assist you in the endeavor. Typically, investors will not jump on the wagon and work with you unless you have the experience to pull off the investment because your inexperience becomes a huge risk to their investment.
2
1
Updated
Share a link to this answer
Share a link to this answer

Cygnet’s Answer

One does not ordinarily, out of the blue decide to own an apartment complex.


This is not a small business to operate and generally runs a negative cash flow for four quite a while.


The national guru whose has expertise in this area with be David Lyndal.


If you are unwilling to invest $10-$20,000 in education before entering this arena, it is probably not an arena you should be playing in.

Thank you comment icon Hello, Thank you for taking the time to respond tho my question. I wasn't quite sure what you meant, though, about investing in education. I am currently a sophomore working toward my associate of arts, taking business classes. Did you mean that I need to invest in real estate classes? Or some other type of education? Your advice is appreciated! Brittany
1
0
Updated
Share a link to this answer
Share a link to this answer

Jeff’s Answer

Hi Brittany,

There are some really great answers and advice above. I personally own a few apartment buildings and I’m very glad I made the investment and learned the right things to do. It may be easier to start by owning a small apartment building before a big complex. However, make sure you learn all about fair housing laws in your area and how to financially plan for being a landlord. Many areas have classes offered by landlord associations or government agencies. I attended these classes and a looked at the lease forms from the local landlord group and the local realtors’ association. These leases gave me a general idea of things to know before attending landlording classes. I always advise new landlords that they need of a team of locally licensed professionals which at a minimum contains a realtor, property attorney, financial planner, banker, and contractor/ inspector. There are Real Estate Investing groups in many areas. I attend these but I am always careful if they are trying to sell me something very expensive or want my investment without having seen the property. Please watch out the most for anyone that is a hard-core sales person. There are many steps to break down in these as founder Jared Chung said above, each one of these are a lot of questions.

I hope this helps as a starting point.


Jeff recommends the following next steps:

Research laws in the area by looking at the standard leases for the city and state
Reasearch local landlord associations or classes available
Be very wary of hard-core sales people at any event
Begin to figure the best way to identify members of your team. (Each one could be an entire thread.)
Consider starting out working for a property management company and graduating to smaller buildings before taking on a big complex.
0
0
Updated
Share a link to this answer
Share a link to this answer

Nat’s Answer

You can start your career first by getting practical experiences working for an apartment Sponsor or General Partnership owner company or by working for Property Management company. Property Management company you will learn a lot about operating a property from hiring people, marketing, leasing, all the laws and regulations or leasing, insurance, maintenance issues, and vendor management etc... There is so much to learn and those are the types of companies you should try to get started in to learn that. Thank you.
0
0
Updated
Share a link to this answer
Share a link to this answer

Jared’s Answer, CareerVillage.org Team

Hi Brittany. That's a LOT of questions! I think you might get better results if you split the questions up so each one gets one page. Otherwise I worry that qualified volunteers might be a little intimidated by the large volume of questions.
0