Prospecting multi-family - start my list from scratch or buy data

Prospecting multi-family - start my list from scratch or buy data

New to Real Estate · Salt Lake City, UT · Member since 2017 · 25 posts · 8 votes

Hi All - trying to find deals in Salt Lake City. Like everywhere else, the market is white hot and cash flow is non-existent in the MLS/retail listings as everyone is cashing in and inventory is low at the moment. My goal is to leverage my cold-calling skills to find off-market deals with the hope of locating deals that cash flow.

I am curious what the group consensus is here on buying a list (ex: corelogic, or another real estate data company) for starting to prospect to duplex, triplex, and fourplexes versus just building a list from public records. Curious the pros/cons experienced.

Through public records, I am able to run a report for all the 2-4 unit zoned/permitted residential multi-family (although I live in a duplex but the records show that it is a single family, guessing it was converted maybe without city permits/approval).

I have played around with the tool and its easy to find the list and the owners of the property (be it a corporation or an individual). The challenge here is me figuring out how to contact the right person at a corporation owned property if you are cold calling - even if the corporation is an individual.

So while I can run the list and extract the data, is the better usage of time buying a list for my target area? In the groups experience, is there phone contact information with these lists - are some better than others? Would a good strategy be to first get a list of absentee owners of my target property and reach out to these owners who are out of state?

My strength is in cold-calling so that will be my strategy - If I need to skip-trace phone numbers regardless of where the property information comes from.

Otherwise, if it is all the same, why would I spend money on a list where I would have to then skip trace the contact information as well too.

Thanks and I will elaborate and share any other information I think of - my goal is to put in the sweat equity to find a deal to get my first one under my belt. Starting local to where I am now :)

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  • New to Real Estate · Salt Lake City, UT · Member since 2017 · 25 posts · 8 votes
    5y

    Am I looking at going about this the wrong way to prospect to multi-family owners?

    Am I wrong to pursue prospecting this way?

  • Salt Lake City, UT · Member since 2018 · 219 posts · 182 votes
    5y

    @Michael Kundrat

    I think you are on the right track and it’s a great idea. Another idea might be to reach out to local property management companies and let them know you are in the market for a multi unit and that if they hear of anything that may be coming available to please reach out.

    I would be open to all opportunities. I would still keep an eye on the MLS, call on properties that catch your eye when driving by, look up absentee owners.

    You could also look up divorce records, properties for rent that a landlord may be open to selling, code violations, notice of defaults Etc. 

  • New to Real Estate · Salt Lake City, UT · Member since 2017 · 25 posts · 8 votes
    5y
    Originally posted by @Cherie Orellana:

    @Michael Kundrat

    I think you are on the right track and it’s a great idea. Another idea might be to reach out to local property management companies and let them know you are in the market for a multi unit and that if they hear of anything that may be coming available to please reach out.

    I would be open to all opportunities. I would still keep an eye on the MLS, call on properties that catch your eye when driving by, look up absentee owners.

    You could also look up divorce records, properties for rent that a landlord may be open to selling, code violations, notice of defaults Etc. 

     Thanks so much for the input - I will take into consideration all of those.

    I am also curious how to get contact information when you identify a property of interest (and the for rent sign isnt up front). Do the RE data services provide those from like a core logic, does everyone have to skip trace or get creative in other ways.

    I just wonder if there is a path of least resistance/one single source for a quick list of units that includes contact information to drill down on?

    Thanks!!

  • New to Real Estate · Salt Lake City, UT · Member since 2017 · 25 posts · 8 votes
    5y

    Mostly wondering the best way to get phone numbers - I am thinking ill go right to the source of the data providers and see.

    I am excited to start my business.

  • Specialist · Denver · Member since 2021 · 159 posts · 101 votes
    5y

    I'll add my two cents here. I think it's best to have an imperfect start than to wait until all the lights are green to go.

    If you can gather a list through public record inexpensively, then go for it. The benefit of buying a list is that you can get a large number of prospects pretty quickly. You would just need some money to invest.

    A couple of good locations to get multifamily property data are Reonomy and Costar. Reonomy is the premier location and they may now be partnered with Corelogic; you will have to check.

    If list source or the public records don't come with the property owner's information, we may be able to help with that since we can skip trace LLCs, corporations and trusts (Multifamily and other commercial properties are often owned by these entities).

    From there, using your cold calling skills will be helpful. We've seen investors manually text to complement their calling. Once you've secured your first deal then you can scale up and cast a wider net.

    BiggerPockets has a rent calculator under tools. Perhaps that will help with some of your numbers.

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