What percentage of sold apartment / multifamily building are listed on the MLS and/or Loopnet?
Put another way, what percentage of sold multifamilies are 'off market' in your estimation?
@Charles Mangum we have a little saying, if you are buying from LoopNet you are probably paying to much. I'm not sure of a percentage, but I do see a fair share of pocket listings. Have you tried Lifestyles Unlimited? I'm not affiliated with them, but they do focus specifically on multi family.
we have a little saying, if you are buying from LoopNet you are probably paying to much.
That depends on how you approach LoopNet. I have followed overpriced properties for long periods. Sometimes motivation levels change and prices do as well. My best example was a property listed at 5M for over a year. They would not budge. I checked back with them periodically. After a year of monitoring, I got them to accept my offer of 4.1M. One year later I sold it for 5.2M.
I don't know what the percentage is but I am amazed at the transactions that I see that I never saw for sale. I probably sell about 1/3rd of my properties as pocket listings because I don't like the circus that comes with a listing. So I would say that there are a large amount.
@William Dampier I feel you on the Loopnet comment, but you have to be careful about blanket generalizations about the service. You can miss some great deals. @Steve Olafson made a good point. Another example is we have picked up deals on Loopnet in the first day it went live. One was a SFR agent doing her first MF deal had no idea how to price the property. But yes, a SIGNIFICANT number of deals on Loopnet are overpriced and the owners+agents are not realistic.
Agreed. Most listings don't hit loopnet until they have already been marketed to the agencies known buyer pool.
Lifestyles Unlimited reports getting some pocket deals due to a reputation of closing.
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#3 Mobile Home Park Investing Contributor
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Agree with Steve Olafson as I have gotten listed property at a much lessor price due to a change in seller motivation. However, a lot of properties are sold without a listing on any platform due to broker networks. I sell most of my own properties without listing them either as I have a private network of serious buyers who usually jump on it.
Shine on,
Jack
How do I find wholesalers with a large inventory of unlisted ( pocket) multifamily properties?