Where do I find apartment buildings to invest in?

Question

Ive been looking into investing into an apartment building and I don't know where to find the deals. Ive tried Loopnet.com and other websites but cant seem to find anything good. Does anybody have recommendations? Thanks!

Steve Morris · Answer

"Ive been looking into investing into an apartment building and I don't know where to find the deals. Ive tried Loopnet.com and other websites but cant seem to find anything good. Does anybody have recommendations? Thanks! "

Look up the commercial brokers in town.  I'd lean towards one that specializes in apartments and has some headcount, especially brokers that are calling a lot.  Meet them if you can and give them some details like how much down, stuff you do/don't like about properties in general and see if you're comfortable with them.  Then I think I'd call once a week to see how earnest they are.

Nothing against stuff on WEBsites, but most brokers know a good deal and prob have a buyer lined up already so they can get/keep both sides of the commission.  If it is on a WEBsite and good (whatever your standard), act quick.

If it sits and gets shop-worn there is an issue (usually pricing).  If its been out there a while and seems to have potential, the seller does want to sell, so I'd be more inclined to try a low-ball if you can show legitimacy.

Luke Dixon · Answer

@John Warren Thank you!

John Warren · Answer

@Luke Dixon in commercial real estate, there is no equivalent thing to the MLS. Instead, commercial brokers do their best to become knowledge hubs where they know all the active buyers and sellers in a market. They then try to connect the buyers and sellers when they get a listing. When a deal makes it to loop net or your local MLS, you should be very suspicious. Here in the Chicago market, if I see a deal listed on the MLS from a local commercial real estate agent then I know it is probably a dud.

The really great deals don't make it past the first round of emails these guys and gals send out. The best way to connect with these brokers is by checking who has listings on sites like loopnet, and then getting to know those brokers so you can get on their distribution list. Be honest and up front about what you are looking for an ask them a lot of questions. It is a relationship business for sure, and it will take time to see the great deals.

Mason Hickman · Answer

@Luke Dixon

You’ll need to network with commercial brokers in your target markets. A lot of the deals never make it to loopnet because brokers will shop them to their existing distribution lists or post to their own websites.

Ujwal Velagapudi · Answer

You can try some of those commercial property listing sites like loopnet, but BP has a marketplace as well. You can find real estate agents in the cities you want to invest in to find properties on the MLS. I've found opportunities on Craigslist's housing section as well. If you want to get a bit more aggressive, you can try to find unlisted properties yourself by contacting the building owners. Property managers are also another great relationship to have, because of course as the folks managing these apartment buildings they will have firsthand knowledge of an entire portfolio of apartments, and some will even have a brokerage arm that will assist in the sale. I would start with first networking with your local real estate community at meetups and other events, join mailing lists of wholesalers and other sellers, and just let it be known to people that you are in the market. Give people your criteria, how serious you are to invest, how you will be able to finance, your experience, etc. so that when opportunities do come up, they can reach out to you. These are all more direct ways, assuming you aren't looking to invest in syndicates and other investment funds.