Real Estate Broker · Seabrook, TX · Member since 2014 · 31 posts · 25 votes
Any suggestions on finding multifamily properties outside the MLS? I am a Broker and do find good deals on MLS but I know there is a huge market outside of it as well. I am in SE Houston/Galveston Bay Area and looking for 4-8 units to start. Thanks!
I take it your are a broker that specializes in single family properties that wants to invest in 4-8 units? You need to connect with the brokers that specialize in these smaller multi-family units. Search Loopnet to see what brokers currently have listings on these size properties. Reach out to each of these brokers, have lunch, and regularly connect. Search all the top commercial brokerage firms to see who is listing these type of properties. Hendricks Berkadia is a multi-family only brokerage company and they have an office in Houston. Check CBRE, Cassidy Turley, Marcus & Millichap, Sperry Van Ness etc etc. These are small properties so you might only find few people that deal in this space at the larger firms. I would also search Craigslist to see if anything pops up (it may not). Get a routine set up so you are continually checking on deals on a daily/weekly basis. I would also keep checking the MLS.
Setting up a direct mail campaign might work well for these size properties as well. When we starting investing in multi-families we did several successful campaigns for the 5-20 unit complexes.
1. Do you know any commercial brokers? If so, lean on them to find you a few investors that may be willing to do an off-market deal. If you do not have a commercial broker contact, interview a few.
2. For the 1-4 units you may be able to get different information on MLS reports than a 5+, but look for owners that have owned for 10-15 years with high equity and send them a note or give them a call. Tell them you are looking to buy.
Most importantly, your feet have to hit the street. I have not found that many deals will come find me unless I do something to get my phone to ring or build/foster a relationship with a banker, title company, commercial broker, REI meetups, lawyer, CPA, etc. All of these people talk with many more people than you could possibly talk with, you have to get them to think of you when someone says something about an investment property.
I take it your are a broker that specializes in single family properties that wants to invest in 4-8 units? You need to connect with the brokers that specialize in these smaller multi-family units. Search Loopnet to see what brokers currently have listings on these size properties. Reach out to each of these brokers, have lunch, and regularly connect. Search all the top commercial brokerage firms to see who is listing these type of properties. Hendricks Berkadia is a multi-family only brokerage company and they have an office in Houston. Check CBRE, Cassidy Turley, Marcus & Millichap, Sperry Van Ness etc etc. These are small properties so you might only find few people that deal in this space at the larger firms. I would also search Craigslist to see if anything pops up (it may not). Get a routine set up so you are continually checking on deals on a daily/weekly basis. I would also keep checking the MLS.
Setting up a direct mail campaign might work well for these size properties as well. When we starting investing in multi-families we did several successful campaigns for the 5-20 unit complexes.
Great suggestions Randy Lance and Chris Winterhalter , thank you. Yes I only handle residential. I know only a couple commercial brokers but will seek out others, as well as looking into mailings.
I'm by no means an expert and I'm just starting out with buy and hold properties myself. I recently spoke with a person that I know that owns a few duplexes and one tri. As I was picking his brain and asking him questions, he mentioned that he looked on Craigslist in the rentals section and found some units for rent that were part of multifamily properties. He emailed/ called the property managers to inquire if the owner would be interested in selling their property. He also found the property managers, well most of them, were happy to give any info about the property and rentals.
He said he did this for about 20 or so properties before one actually came back and said they were interested in selling. He made the deal happen and that's how he got his first duplex.
There are several commercial listing services that you can join that relate to multi-unit properties. "Propertyline" is free to use for all states but Nevada, "Loopnet" has free limited searches available, & there's "CoStar." Like others have said, you can then call the commercial listing agent on any of those properties you like and try to develop a relationship.