Best way to find small apt complexes for sale?

Question

Paige Kelsey · Answer

@Tj M.

I think the first step is really defining what you mean by deals before you reach out to any brokers or call anyone.  What I mean by this is to figure out exactly what it is that you are looking for. Are you looking for a cap rate of 8 in a market where that is barely holding a 6 cap? Is a deal to you one that you can get some sweat equity into or divide the utilities or hope to better manage than the last guy? Are you in a growing market and maybe are just looking for any deal to get in? Bottom line is that I think that it is important to define what you are looking for, determine your own strengths and have all your ducks in a row thinking before you start throwing out numbers in the millions. The difference in commercial is the loan. Do you have 25 to 30% down or do you have a partner? Sure people talk a ton on how they kinda made it happen when deal presented it self but many markets are super hot and by the time you figure it out, that deal will be taken by someone that already has it figured out.  Figure not just on how to buy a large multifamily but also what is the plan on the exit. Are you going to try to get out when that note balloons out or will you figure into your numbers a plan for a refi. Not saying you don't have a plan but being able to articulate that plan to a lender, a broker or potential partners is super important especially if it is your first mult.

All the best!

Paige

Michael Lee · Answer

Hello and you asked a good question TJ!  I would suggest using Websites for information only and to call commercial successful Real Estate Brokers that are well experienced.  Using Craigslist and even calling the owners trying to rent and asking them if they are considering a sale.  They also may finance your deal.

Good luck to you!