New to Real Estate · Fort Worth Texas · Member since 2022 · 5 posts · 1 vote
I’m currently looking for an off-market apartment property (100+ units) in a busy urban area in the state of Texas and wanted to ask for your insights.
Could you share your strategies for finding such deals? Are cold calling or broker relationships more effective? Any tips or scripts for reaching out to owners would also be helpful.
I’d love to connect and learn more about your approach. Please let me know if you’d be open to a quick chat
Typically, larger properties are sourced through brokers. However, I do know 2 investors who have purchased 70+ unit properties via seller outreach, but it takes time. Repeated outreach to the seller and building rapport. Many investors opt for building broker relationships when buying 100+ unit properties, but it also takes time to build a relationship with the broker.
If you go the direct-to-owner route, commit to doing consistent outreach for at least a year or, better yet, at least 2 years. When I began direct-to-owner marketing for multifamily (12-40 units), I realized it usually takes many months and touchpoints to build rapport with most sellers where they are willing to really open up about their property and financials.
Typically, larger properties are sourced through brokers. However, I do know 2 investors who have purchased 70+ unit properties via seller outreach, but it takes time. Repeated outreach to the seller and building rapport. Many investors opt for building broker relationships when buying 100+ unit properties, but it also takes time to build a relationship with the broker.
If you go the direct-to-owner route, commit to doing consistent outreach for at least a year or, better yet, at least 2 years. When I began direct-to-owner marketing for multifamily (12-40 units), I realized it usually takes many months and touchpoints to build rapport with most sellers where they are willing to really open up about their property and financials.
Same principles apply - being busy will create opportunity. Start with Reonomy or Costar to identify all the 100+ units in your target market (on and off market) and then see if you can get into direct contact with some owners. At the end of the day, whether small or large deals it always comes down to relationships.
If you go through brokers or even reaching out to sellers, it's a good idea to keep in mind how they will see you. Things like a website, an email at your domain and credible social accounts (even small things like a profile pic and bio) can show you are a legitimate business. Most times, the top of a brokers list are those with experience who they've worked with in the past. So making sure you are presenting yourself as credible and trustworthy, can make a huge difference in building the relationship and hearing about those off-market deals.
@Kenny Bao typically I’ve found my work in connecting in off market deals 100+ units has left me spinning my tires. These are typically ownership groups, not single owner. So a majority of the ownership groups would want to sell, plus since they are more sophisticated owners usually would sell through a broker to get max price and not sell privately. I’ve found better results using my acquisition framework in the 10-50 unit space where there is one, maybe two owners. And even then, the life cycle is generally pretty long from first contact to closing. Sometimes years.
So I’ve found that leveraging brokers and being super clear on my criteria is a better use of my time. It’s their full time livelihood to make transactions happen.
I would suggest reaching out to owners of multi family who have no loan on the property. Sellers of commercial property will be savvy to Seller Financing. If you approach the conversation by first finding out their goals, then you can back into a strategy that will work for the both of you. Perhaps they want long term income for their retirement and ultimately their heirs. This would allow for a longer carry back with up front cash flow. Maybe they don't need the money now but in 5 years they wan to send a grand child to college. This would be an opportunity to discuss deferred payments and a 5 year balloon. If this is your first property, you could consider starting with a smaller apartment building and going after the opportunity first, and the property as a secondary consideration. Start with the list criteria that will put you in front of likely sellers.
As a lifelong real estate investor and a broker with over 30 years of experience specializing in multi-family properties, I can confidently say that success in this field is all about building relationships. Spend time where sellers and brokers gather. Attend local real estate investor (REI) meetings and get to know people. Don't focus on buying or selling right away—just connect and build trust.
Both brokers and sellers prefer doing business with those they know and trust. Once you establish these relationships, deals will start coming your way effortlessly. It takes time and patience, but the long-term benefits are well worth it.
I’ve personally gained invaluable knowledge, listings, and deals from friendships I’ve built over the years.
The more people you engage with, the faster you’ll achieve your goals!
The owners of 100+ unit complexes are not individuals who will be swayed to sell by a good offer or the need to cut short term losses. They are often executing long term, intentional strategies that can get derailed if they sell/refi outside of the intended timeline. Their job is to keep investor capital allocated and returning, so there's only a deal if they can actually redeploy the capital into something better.
As a buyer, you need to establish a lot of credibility for a deal this size. It comes down entirely to your ability to commit to the deal and close it on time. They'll probably also want to be sure that you are competent to operate the property afterward, because their reputation is tied up in who they do business with, and it's bad for everyone if the property becomes devalued.
Hey Victor, thanks for the advice. I work for a syndication firm and we've been getting our deals from brokers, but since it's the start of the new year. It's been quite slow. Do you recommend making relationship with property management companies?