How to Break into Multifamily Investing with Clive Davis
Multifamily investing is a great alternative investment for many investors who are otherwise invested in the stock market. However, breaking 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.
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Key Insights on Breaking into Multifamily
Starting out as a corporate transactional lawyer on Wall Street
First-hand exposure to the financial world with high net worth investors gave Clive an excellent foundation for real estate investing
The SEC expansion of the accredited investor's definition
I wish they [SEC] would continue to expand the definition of accredited investors and allow more people into the party
How Clive began to build his portfolio with real estate investments
Crowdsourced deals is one way to break into real estate investing
Expanding his network to grow his private investments
If you aren’t connecting with partners, cosponsors, property managers, etc., people are not going to take you seriously.
Explaining BPS (Basis points, otherwise known as "bps")
Comparing investing through crowdfunding deals vs. a private network
Crowdfunding was a good way to get exposure to real estate investing opportunities
How Clive obtained his REI education
Understanding the booming market of the Atlanta Metro area in Georgia
Where the growth markets are in the surrounding Atlanta areas
Starting and growing a Facebook Group: The African American Multifamily Investor Network
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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.