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

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

Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page!

Learn more about your ad choices. Visit megaphone.fm/adchoices

623: 10th Grade Dropout to 400-Unit Apartment Complexes (WITHOUT Raising Money) w/Sofia Castro 01:11:41

BiggerPockets Real Estate Podcast

Shownotes Transcript

PodQuest PodQuest Podcast Discovery Engine tailors playlist for your curiosity

623: 10th Grade Dropout to 400-Unit Apartment Complexes (WITHOUT Raising Money) w/Sofia Castro