Oct 23, 2020
Multifamily investing is a great alternative investment for many investors who are looking to diversify from the stock market. However, getting into multifamily can be a challenge, especially for larger apartment investing. To break into multifamily apartments, you first need to prove your credibility to brokers and owners who will see if you are even worthy of submitting offers. Clive Davis helped clients get into these kinds of alternative investments and it sparked his interest to build his own portfolio.
Clive Davis is an Atlanta-based, full-time investor with a portfolio of nearly 2,000 units (not the music mogul). Clive started as a corporate transactional lawyer on Wall Street and spent 20 years in law covering mergers and acquisitions (M&A), and investments.
To break into multifamily investing, Clive focused on educating himself first. He listened to podcasts, attended events, and read books to understand terms and find credible sponsors. He began investing passively through crowdfunding deals before investing directly as a limited partner with sponsors. Now, he is focusing on growing his portfolio as a general partner.
He shares his approach to break into the multifamily club, thoughts on the SEC’s expanded definition of an accredited investor, insights on the Atlanta market, and why he created his Facebook group, the African-American Multifamily Investor Network.
Key Insights on Breaking into Multifamily
I wish they [SEC] would continue to expand the definition of accredited investors and allow more people into the party
If you aren’t connecting with partners, cosponsors, property managers, etc., people are not going to take you seriously.
Crowdfunding was a good way to get exposure to real estate investing opportunities
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An experiment in school taught me that regardless of what efforts you put in, you have to understand what the competition is doing.
Most Recommended Book:
Best Ever Apartment Syndication Book (Joe Fairless)
Just Mercy (Bryan Stevenson)
Mindfulness, breathing exercises, and working out.
Wish I Knew When I Was Starting Out:
You can go bigger, sooner than you think, by surrounding yourself with people who have already done it successfully.
What are you curious about:
What is going to happen in the Multifamily space in the next 5 years.