Starting your multifamily investment journey may feel daunting, so to help you get started, we have broken the process down into a few simple steps.
1. Start with the right focus and mindset. Most of my investors want massive passive income, and they have a growth mindset. Napoleon Hill, author of Think and Grow Rich, says it best, “Keep your mind fixed on what you want in life: not on what you don't want.”
2. Get involved in activities and materials that are multifamily related. Read books, articles, and websites, attend webinars, meetups, and conferences, follow syndicators on social media, etc. As a start, check out the Diamond Point Homes’ blog and sign up to be a part of the Investor's Club.
3. Qualify as an investor. Check to see if you are an “Accredited Investor” as defined by the SEC. If you are, you will qualify for all our offerings. If not, you’ll only be able to participate in a 506(b) offering (which we offer as well), and you need to be sure that you are a “sophisticated investor” with a prior personal relationship with your syndicator. Syndicators can’t advertise these offerings, so you’ll need to be part of their network.
4. Make a soft commitment. Once you are qualified and an offering is available for you, you should make a soft commitment to invest in that offering. Syndicators will give investors with soft commits priority. I have had a waiting list for all my offerings, and investors that have soft committed don't miss out.
5. Attend the property's investor presentation. The syndicator will go over the details of the property including the business plan. This is a great forum to ask questions and get to know the syndicator and the business partners better.
6. Commit and sign the paperwork. The syndicator will make the offering available for hard commits. Confirm the amount that you want to invest and review and fill out the necessary paperwork to invest. There will be instructions on where to wire funds.
The syndicator takes it from there and executes their business plan, and all you need to do is enjoy the benefits and returns of your investment.