John Casmon

Getting Started in Multifamily with Kent Ritter, Episode 129

Kent Ritter is a native of Indianapolis, who began investing after successfully exiting a consulting firm with his partners. In seeking a place to invest the proceeds, he turned to multifamily and began the education process. To date, Kent has invested in over 1,000 multifamily units and he shares why he picked passive investing to start instead of buying his own 50 unit. He also talks about the Indy market and the strategies he employs to finds investors.

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Key Insights

Background in consulting, focusing on operational improvement
Started his own firm, sold it in, and started looking for areas to invest
Considered buying a 50-unit, but realized there were more benefits in acquiring a larger property
The best property management firms don’t want to manage a property with less than 75-units
Find sponsors who will be transparent and provide access on the inner workings for the deal
As a passive investor, know your basics and ask about specifics, especially financing and renovations
Indianapolis – great for multifamily, stable, and affordable
Indy: 2nd largest city in the Midwest, 14th largest city in the US
Kent’s market criteria: major markets, growth (population and job), business friendly, employment mix, supply, amenities
Sub-market: Hamilton county is expected to double by 2050, Hendricks is expected to grow by 84% by 2050, median income is $66k
Indiana voted 8th best state for business tax
Salesforce and Infosys have placed HQ in Indianapolis – attracting more tech jobs
Tips To Grow Investors: Create your investor persona
Kent’s Personas: Wealthy/Accredited Investor, Interested Active Investors, Busy Professionals, Retirees
Where to find investors: local charity and political events, local meetup, REIA groups