Rental Property Investor · Tampa, FL · Member since 2015 · 52 posts · 31 votes
I am looking to get into multi-family. I am primarily a wholesaler and fix and flip on SFR. I own a commercial property that I lease one of my buildings and I occupy the other 2 but I have no experience in multi-family. I was wondering if it was a good idea to find a commercial RE agent and search for deals and learn the ins and outs through him/her. How would I find a seasoned RE agent who would be willing to teach while making a sale? I am in the Tampa market. I am thinking of starting out with 5-12 doors initially. My main questions are how are these typically financed? Is owner financing rare on these deals? What are the creative methods to structure these deals?
Lender · Wauwatosa, WI · Member since 2016 · 570 posts · 203 votes
9y
@Laura Spaulding, Congrats on your initial deals, it sounds like your start in commercial is already on its way. Can I ask how you financed the commercial property that you already own? As to the need for an agent, that all depends on how involved and savvy you are at locating properties on your own. If you feel you want help in that area, then I would certainly encourage you to look for a local agent in to walk you through some basics and learn through his/her experience.
How to find them? Well, BP is one great way. You'll find an abundance in invaluable tools here, seriously. You're able to search here on BP for Real Estate Agents in your area and should come up with several. Take one, possibly two of them out for lunch and start discussing. (among a number of ways to get in communication with them.) The great thing about locating REA's through BP is that you're going to come across agents who are likely also REI minded, which is certainly a bonus.
Also, another way to find agents in your area is to locate your local REIA or other Investor meetups, and start asking people for referrals. These are all pretty easy ways to find agents. I'd look into meetup.com and just search for investor meetups!
As to financing - it's very possible to find owner financing on these size multi's. 5-12 is a pretty common "mom and pop" owned multi. You wouldn't know sometimes unless you simply ask! Worst thing they can do is say no, and you move on. Another course of action, if you cannot get it owner financed, is to inquire about a commercial loan from a lender. Commercial loans will be quite different than a residential loan. I commented on the process and basics of commercial loans on another thread found here. Basically, there is a lender out there for every borrowers situation, its simply finding the right lender for your particular situation with rates and terms that are acceptable to both you and the lender.
If you have any questions about financing, commercial loans or 1-4 unit investment loans, feel free to contact me and we can chat over the phone if you'd like.
Investor · Saint Peterburg, FL · Member since 2015 · 95 posts · 27 votes
9y
Congratulations on your foray into the multi-family world. The fact that you already own a commercial property can help you when it comes to getting your numbers solid for what you are looking for. I come from the same wholesaling background and have spent the last few months learning the area and running numbers to get a feel for what I am looking for in the multi-family arena. I, myself, am not seasoned in the commercial field as a RE Agent, but I have several that I have worked with that I could recommend if you like. As far as financing, seller financing can be found, and Marty is right with these "mom and pop" owned, you can find great deals. As long as you can find the reason an owner is wanting to sell, you can find something creative to work for both parties. Good luck and continue to reach out with any questions you may have
Rental Property Investor · Tampa, FL · Member since 2015 · 52 posts · 31 votes
9y
Thanks for the reply Marty Johnston My first commercial property was through traditional bank financing but I have another company that occupies the property so the qualification was very different than for investment purposes. I bought it in 2012 and I didn't know enough then to even ask for seller financing. Years later I found out he would have taken it. Lesson learned. I am still Learning the ropes on the lease types. I rent to a various array of businesses so that has been a Learning curve too. Great money though. I am comfortable finding properties on my own but not vetting them just yet. There seems to be various things to look for in calculating what a "good deal" is and I'm thinking some help might be beneficial.