Finding Off Market Large Multifamily Deals?

Question

Hi everyone,

I was wondering if anybody could share some of there experience on how they have found large Multifamily Apartment deals (32 units and higher) off Market?

Also how would someone get in contact with a owner of a large Multifamily Apartment when they have a structure in place LLC or Corp to hide there name and a property manager that manages the building?

Thanks in advance for any help

Account Closed · Answer

There are three types of multifamily
1. 1 - 4 units
2. 5 - 65 units
3. More than 65 units

Buying 1 -4 units is very similar to single family

Buying 5 - 65 units means you are likely to self-manage because usually there isn't enough left over every month to pay someone to manage the roperty

Buying over 65 units usually means you can hire someone to manage for you

With training you can be a lead in a syndication that buys 65 + unit apartments. Joining the groups that teach you how to buy multi-family runs around $30,000 to join and usually takes a couple of years to gain the knowledge and credibility amongst other investors to get enough momentum going, to buy a property. You need to meet lots of brokers because almost all of these apartment sales are controlled by brokers who specialize in large apartments and they want to see your credentials and ability to close. The paperwork to create a syndication runs $10,000 to $15,000 before you start soliciting accredited investors.

Or, you can be a "passive" which means you invest $50,000 or more into a syndication to join in the fun.

You may want to listen to Ken McElroy who started from nothing and now has tens of thousands of units with Kiyosaki. It's free to learn the basics and theory.

If you didn't catch the misspelling of "property" in line 7 you aren't ready for multi-property investing. It is detail oriented investing with a lot of paperwork and contracts you have to read and understand or you get sued.

Jeff Roth · Answer

Hi James-

Great questions!

To find off market properties, try these methods:

1. Contact property management companies that manage these types of properties and stay in contact regularly asking if they know an owner thinking about selling. Smaller property management companies can be more open to helping and easier to build a relationship with than a corporate property management company.

2. Join a local Apartment Association for property management companies and owners. This is a professional group for multifamily housing. You will build relationships that will lead to off market opportunities over time.

3. Get on wholesaler lists that also prospect multifamily properties. They can send deals your way over time.

4. Join multi-family property or apartment buying groups on Facebook.

The way to find an owner of an LLC is to go to the corporation division/formation website for your state and type in the name of the LLC you are interested in. You can get the LLC off the public tax records online for the property. The corporation website will have the articles of incorporation and many times lists the owner and address separate from the property of interest.

Happy to help!

Brian Adams · Answer

@James Nix generally, a commercial real estate broker is the best source for larger assets.

However, I have bought several deals using direct mail and this process is definitely a long game. I bought a 1,000 unit deal using a combo of direct mail, emails, and calling the seller. It took me 2 years, but I was persistent as I knew there was a good deal to be had.

I sourced the asset using Yardi Matrix which has the owner's contact information. When the property is in an LLC, you have to skip trace to get to the actual owner.

Paul Moore · Answer

Hi @James Nix! You got some great advice above and you should be all set to find deals in this market. The question is this: do you really want to buy deals in this market. Thought I wrote a book on multifamily investing, I've been avoiding it for a number of years and it's perhaps worse than ever now with higher interest rates but consistently compressed cap rates.

I hope and pray that my idea will not come to pass but it could: if you wait about 1 to 3 years, it's likely that you will be able to acquire some foreclosed multifamily deals from banks. I hate to see this happen and in general multifamily deals are less abundant than single family and other types of assets, however this has been a long drunken binge for many multifamily syndicators, especially newer ones. Many of them have debt that needs to be refinanced in the next few years and it's possible some will end up under water and lose their properties.

Again, I hope this never happens. But if it does you will need to be prepared with experience, a team, liquidity, high net worth, or the ability to get a co-signer to sign on the loan and a great property management team. You will need this to convince the bank you are a worthy buyer if that opportunity arises. Good luck and happy investing!

Colton Hahn · Answer

BAM gets off market deals because of our reputation. Generally to get off market deals of that size you have to be an established, well known buyer in a market. Big off market deals go to the biggest players who are known for closing on big properties

Wale Lawal · Answer

@James Nix

As a real estate investor, you know it’s important to find the best properties for your needs. The perfect property is different for every portfolio, but when a multifamily complex officially goes on the market, it can be hard to out-maneuver the competition. You can expand your options when you look at complexes that aren’t on the market. Many current owners are willing to sell under the right circumstances, even if they haven’t formally listed their buildings. Learn how to find off-market multifamily buildings to add to your investment portfolio.

1. Establish Your Criteria2. Identify Your Target Location3. Hit The Streets4. Leverage Your Relationships5. Embrace Patience

Read this article for more information https://buyitrentitprofit.com/...

Good luck!

Jeff Lara · Answer

I was tired of "looking for deals." So, I am starting to create my own deals in new MF construction projects. Starting in Texas and then branching out to other markets. Let me know if you want to connect!

Bob S. · Answer

I get them through various sources in the Cleveland markets, it seems deals just " come to me " I can get as many as I want. Its all about your network. I have wholesalers, attorneys, Sherriffs and title contacts  But then again, I have been doing business out there for about 10 years

Good Luck

Eliott Elias · Answer

Network with commercial brokers in your area, they see a lot of deals the public doesn't. Most only sell to each other, it's a slow and long game to break in

Finding Off Market Large Multifamily Deals?

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