Finding deals, particularly MF deals

General Real Estate Investing
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Finding deals, particularly MF deals

Bob Bates
Electrical Contractor · OR · Member since 2008 · 13 posts · 0 votes

Where do you find deals? For the most part the MLS and internet don't have much more than full retail and I haven't heard of much through networking.

Also, how do the big investors deal with the issue of down payments? I purchased a business a couple of months ago and my cash on hand is down to the point where it will take a year or so to recover for another large purchase. Ideally, I'm shooting for MF properties in the $1-1.5m range.

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Account Closed
Manhattan, NY · Member since 2008 · 801 posts · 61 votes
18y
Originally posted by Bob Bates:
Where do you find deals? For the most part the MLS and internet don't have much more than full retail and I haven't heard of much through networking.

They are all full retail when you first see them.

I get deals from brokers, sellers, other investors, bankers, lawyers, accountants, I could go on for a very long time. The net-net of it is you must network. You talk to anyone and everyone who will listen and let them know what you are looking for in a multifamily investment property.

A great way to start is to pick an area and seek out the commercial brokers in that area. Not the residential types, they don't have a clue as to how these deals go down.

Explain precisely what you are looking for. If you want a B or C property in a B area, make sure they know it. If you want a property that is under performing because the rents are under market or the occupancy is low or it is just poorly managed, let them know.

When they send you a deal, 99% of the time they will send you proforma numbers. Those are fine to eliminate a deal. It is in an area you don't like or does not fit your criteria. If you can eliminate it quickly, great. Call the broker and explain why it did not meet your needs. That one step will separate you from 95% of the other investors out there.

But, if it looks promising. Contact the broker and ask for current operational numbers. Those are the numbers you use to draft your LOI to get to the next step which is due diligence.


Remember when I mentioned networking above? You do it for potential private money too. They can be partners or lenders but under no circumstance can they be both. If they are sharing in the monthly cash flow and/or the appreciation then they don't get a note and mortgage guaranteeing anything.
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  • Jason Hanson
    Real Estate Coach · Oakton, VA · Member since 2008 · 695 posts · 43 votes
    18y

    Buy lists, use direct mail.

    And find sellers who are willing to do owner financing.

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  • Michael Rossi
    Real Estate Investor · OH · Member since 2008 · 4k+ posts · 1k+ votes
    18y

    I find the vast majority of my deals through personal contacts - i.e. people calling me. To get to that point, you've got to get out of the house and meet people. Tell everyone you know that you are looking for an apartment building/complex. Get to know the SUCCESSFUL investors in your area. Many deals are passed amongst these investors.

    Good Luck,

    Mike

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  • Jonathan Grassi
    Real Estate Investor · Member since 2008 · 5 posts · 0 votes
    18y

    Just because it's listed at retail price doesn't mean that 's what you have to pay. I actually get 95% of my deals right off the MLS. Granted, I'm not looking at 1.4 million dollar properties, but...

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  • Account Closed
    Manhattan, NY · Member since 2008 · 801 posts · 61 votes
    18y
    Originally posted by Bob Bates:
    Where do you find deals? For the most part the MLS and internet don't have much more than full retail and I haven't heard of much through networking.

    They are all full retail when you first see them.

    I get deals from brokers, sellers, other investors, bankers, lawyers, accountants, I could go on for a very long time. The net-net of it is you must network. You talk to anyone and everyone who will listen and let them know what you are looking for in a multifamily investment property.

    A great way to start is to pick an area and seek out the commercial brokers in that area. Not the residential types, they don't have a clue as to how these deals go down.

    Explain precisely what you are looking for. If you want a B or C property in a B area, make sure they know it. If you want a property that is under performing because the rents are under market or the occupancy is low or it is just poorly managed, let them know.

    When they send you a deal, 99% of the time they will send you proforma numbers. Those are fine to eliminate a deal. It is in an area you don't like or does not fit your criteria. If you can eliminate it quickly, great. Call the broker and explain why it did not meet your needs. That one step will separate you from 95% of the other investors out there.

    But, if it looks promising. Contact the broker and ask for current operational numbers. Those are the numbers you use to draft your LOI to get to the next step which is due diligence.


    Remember when I mentioned networking above? You do it for potential private money too. They can be partners or lenders but under no circumstance can they be both. If they are sharing in the monthly cash flow and/or the appreciation then they don't get a note and mortgage guaranteeing anything.
    1Reply
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