New to Commercial

[Levi Bennett]

Hey guys,

Currently I'm a realtor in the Orlando area catering to investors who want to buy a vacation homes near Disney. Most of my client base are investors, and occasionally I find one that is looking to do invest in multi-family, apartments, etc... Where do I begin with this? I started at Loopnet, but at $244/month, it seems a bit excessive, and nothing there really impressed me. Most of my vacation rentals have better Cap rates than what is on there.

Our MLS doesn't have much in the way of commercial listings. Most of the advice I read is partner with a commercial agent locally... is there a place to start on the web? Or should I start googling and pounding the phone book with interviews until I find someone I like? Any advice on the matter would be helpful. I have a feeling what I am looking for is out there, but won't be listed anywhere easy to find, if it at all.

Thank you!!

[Christopher Telles]

Originally posted by @Levi Bennett:

Well I have one client that definitely want to buy multi-family. They're cash buyers and want to be in 1.8M - 2.5M range. They also have the management options standing by to take over PM if they need to. Obviously the Cap Rate is the main thing they're going after.. but as a residential guy, I wouldn't know where to start. 

The reviews I've seen on loopnet are mediocre at best. With a $2M+ capital investment, they need to be able to have access to a cap rate that is higher than my 150k options... and Loopnet does not provide that. 

 As @Joel Owenssaid CAP rates for multifamily are compressed in almost any area of the country at this point in the cycle.

As an alternative to Loopnet and or CoStar you might try commercialsearchDOTcom to search for Multifamily properties for sale. This alternative is free, and in my market of Los Angeles, at least for office and industrial, they have the majority of properties available in their search engine.