Apartment Complex Investing

5 Replies

How do you know if an apartment complex is overpriced on Loopnet.com?  What is the best strategy to source properties?

Chances are if it is on loopnet it is ;)

That said, there are definitely opportunities to negotiate off of the asking price on loopnet.  I think there are good alternative ways to find apartment deals.  For me, at this point, building strong relationships with brokers have been my best competitive advantage to source properties.

You have to look at cap rates and cashflow commercial is more of a business.  You have to look at gross profit, expenses to find net profit. You also look at cash on cash returns or the cost of the investment with the cash you use for purchase. 

Originally posted by @Josh E. :
In other words you don't recommend using Loop net to find deals?

I do think there are deals to be found on loopnet though, the majority are overpriced.  I user it more (especially as I got started) as an entry way into conversations with brokers, to build those relationships 

Originally posted by @Account Closed :
Originally posted by @Josh Eitingon:
In other words you don't recommend using Loop net to find deals?

Phillip, asking isn't selling price.  Anywhere properties are offered for sale is a good place to look for deals.  You just have to know your market to make your offer at a deal price.

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