10th Grade Dropout to 400-Unit Apartment Complexes (WITHOUT Raising Money)
2022/06/16
Multifamily real estate investors almost always raise money for their deals, right? Some would call it almost impossible to try and build a huge real estate portfolio without borrowing money or partnering up to take down bigger properties. Sofia Castro, along with her husband, not only built a multifamily portfolio using their own money, but did so starting with a severe disadvantage.
Both Sofia and her husband were high school dropouts, living without much money, and practically no experience. A local entrepreneur took Sofia and her husband under his wing, teaching them both how to become leasing brokers. From there, they started building their entrepreneurial endeavor, eventually selling their business a couple of decades later for a whopping billion dollars.
With cash in hand and real estate experience under their belt, they began buying apartment complexes to flip them as condos. Once the recession hit, Sofia knew this was the wrong business to be in, so she pivoted heavily towards multifamily rental investing, specifically investing in “core deals”. Now, she has a streamlined process for finding deals, buying deals, and screening tenants. She gives some out-of-the-box, but highly useful tips on tenant screening, property management, and why “value-add” real estate isn’t all it’s chopped up to be.
In This Episode We Cover:
“Core deals” explained and why they often beat value-add properties
What are cap rates and why understanding them is crucial when buying multifamily
Condo conversions and the risk of flipping during downtimes in the economy
Tenant screening tips that will get you the best tenants who pay on time, every month
The right way to do property management and why you shouldn’t immediately outsource
How to buy in the right real estate markets, plus the metrics Sofia looks for when investing
And So Much More!
Links from the Show
BiggerPockets Youtube Channel
BiggerPockets Forums
BiggerPockets Pro Membership
BiggerPockets Bookstore
BiggerPockets Bootcamps
BiggerPockets Podcast
David’s YouTube Channel
Ask David Your Real Estate Investing Question
Listen to All Your Favorite BiggerPockets Podcasts in One Place
Subscribe to The “On The Market” YouTube Channel
David’s BiggerPockets Profile
David's Instagram
Dave's BiggerPockets Profile
Dave's Instagram
Rob's Youtube
Rob's Instagram
Rob's TikTok
Rob's Twitter
Rob's BiggerPockets Profile
Steer Clear of Social Media Scams
Should You Self-Manage Your Properties or Hire a Pro?
The Beginner’s Guide to Buying Your First Multifamily Property
Should You Raise Private Capital for Your Next Investment Project?
Books Mentioned in the Show
ABCs to Real Estate Investing by Ken McElroy
Think and Grow Rich by Napoleon Hill
Connect with Sofia
Sofia's Instagram: @officialsofiacastro
Sofia's LinkedIn
Sofia's Facebook
Sofia's Website
Click here to check the full show notes: https://www.biggerpockets.com/blog/real-estate-623
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