Approaching owners/sellers of Multifamily properties and bringing up lease-options and seller financing.

7 Replies

Hey there BP,

I am a beginning real estate investor who currently owns a Tri-plex in the Atlanta metro area. I've been renting it out successfully for over a year now and been successful in automating and delegating most of the landlording tasks and I think I am ready to take on a second property.

I've been reading the "No Money Down" book by our own Brandon Turner and also several others and was interested in the Master Lease Option and seller financing investment strategies as for a conventional loan, most lenders want 20-25% which would be close to $50k for the properties I'm looking at.

I'm confident in my ability to talk with sellers and getting to understand their wants and needs to make a deal happen, my question is, how do I go about finding and bringing the MLO and SF options on the table to these sellers/owners?

My problems are as follows:

1. I'll find a listing online for a property I like, it might be fully tenant occupied, with a notice to not disturb tenants.

2. It's listed so, if I go with a lease option, the selling agent would get cut out I'm assuming right? So he/she would not be wanting to put me in direct contact with the seller.

3. How do I contact the seller directly? Whats the best way to set up a face to face meeting? How have you set up these deals successfully in the past?

Any and all advice or anecdotes would be appreciated. Plus I'm always looking for mentors/partners/friends in the real estate investing community in Atlanta. Drop me a message if you want to chat or get together sometime to swap ideas. Thanks a lot!

Best Regards,

William Edmondson

REI - Metro Atlanta Area

Its really hard to put a creative deal together with an agent in the middle. You usually need to find a way to get to the seller before the property has been listed. 

Also these types of deals only will work for some sellers. You are trying to solve peoples problems, that's the only way you can get good deals in Real Estate, and only using these forms of purchasing properties will only solve some problems, not all.

Originally posted by @William Edmondson

As Phillip wrote, the best way to get a creative structure for a deal is to find off-market opportunities and than you're talking directly with the owner. How to do that? There are plenty of articles on strategies like direct mail, approaching landlords, eviction records, property managers and many others.

If you choose to look on the MLS the first thing you should do is find an investor friendly realtor. They can help you find properties, get the financials of the property to see if a seller finance is an option, and in general advise on specific deals.

Much like you I'm also looking to buy a small multi in the Atlanta metro.

All,

Thank you for the helpful advice. I'm not sure my current realtor is very investor friendly. She mainly is just giving me information on properties I bring to her. Maybe it's time to shop around. I'll also do some more reading on MLO's. Thanks again!

@William Edmondson

It is very tough to get a creative investment purchase when the property is listed, the owner wants to sell the property outright that is their purpose of using an agent. However, it can be done if the property has been on the market for a while and you can use as leverage.

Simply ask the agent if owner is willing to sell property with seller financing. Agent will still get commission but most likely only for down payment amount.

@Assaf Furman

I specialize in multifamily investments and have off market MFHs across the east coast, specially Atlanta. Want to take a look feel free to email me at [email protected].

@Brian Gibbons

You are awesome! 

I've asked tons of people for that and you just hand it out. When you help other people it all comes back to you. Thanks.

@Mike Watkins

You're most welcome. If you check my bp blog you will find a ton of free resources as well as bigger pockets in their resources tab

Pm me if you need help with private lending, joint ventures, and creative financing

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