How do you find off market Apartment/Multifamily's?

14 Replies

Hey guys!
My manager and I have several buyers for apartments, hotels, and multi family units but we are having a lot of trouble finding good deals.

1-There are a lot of shady wholesalers in these deals. They see a pdf, adjust the price by a half point, and blast it out without ever talking to the original agent/owner. I've seen the same property get proposed to me 3 times in the last week from different people at different prices.

2-If we do spot a good deal it's often due to misleading advertising. On one we were looking into the advertised cap rate was 15% our buyer was literally salivating. After we jumped through the PoF and LoI hoops the seller put to us they sent us a pro forma showing 6%... the 15% was for year 5 and the package was in year 1! Needless to say we didn't go farther.

So where are you guys finding them? Are any of you selling them? I saw a few posts where people find value add propositions, if you ever do those and resell we'd definitely be interested. Thanks!

Hi Devon,

It's been a while since I've tried this method (2005), but it might be worth a shot...

I bought 2 different duplexes in Orlando (UCF area) by pulling tax appraisal records (to get the owner's addresses) for the neighborhoods I was interested in, and sending letters to out-of-town owners offering cash to buy their home.

I was hoping to find parents who bought a duplex for their child while they were at college - who had since graduated and they just didn't want to deal with putting it on the market, etc. 

I sent about 60 letters, got about 5 responses and bought 2 of them for about 60-70% of what they were worth.

I'm not sure this method would work with larger multi-family's, but just a thought.

Hope that helps.

Nick

Thanks Nick!

Some of my buyers are only interested in 100 units+, but I'll definitely try out your strategy for my own acquisitions (trying to convince my fiance we should invest instead of having a big wedding.... not working out so much haha!)

Hey Devon. I'm a realtor for out of state investors, and I've run across several that want multi-family housing in Florida. 

After much research, and many times when I called on something with mis-represented income values, talking to commercial firms, etc... This is what I have discovered: Great income generating multi-family homes don't really exist anymore in Florida. 

There is no secret place to find them as I had once suspected. I sniffed it out until the trail went cold and what I learned was there just isn't much available anymore. What is available still get 5 calls a day with interested leads because multi-family is so popular. Everyone with a few Million to invest have read Rich Dad, Poor Dad or have been to a seminar with a guy who made millions in the 90s when the market was totally different.

There is a MASSIVE market demand for that type of property in FL, and everyone scoops them up when they can. The word is out, people with a budget of 2M - 8M have bought everything else and driven prices up. You're lucky to find something with a 6% cap rate (which we can all agree sucks). Unless you're developing, or have found something more niche than generic "multi-family", there isn't much to be had in populated areas of Florida. 

My efforts have shifted to finding a more niche market strategy, something that is the new risky, and something that people will be teaching at seminars in 10 years. 

After much research, and many times when I called on something with mis-represented income values, talking to commercial firms, etc... This is what I have discovered: Great income generating multi-family homes don't really exist anymore in Florida. 

I can definitely agree that it's hard to find good rates in Florida. Clients are willing to look elsewhere if you have any.

I have an option, but it's not technically multi-family. Prices range from 1.4M - 2.5M and historically have a 9-15% ROI. It's in the short term rental market, and new construction. PM me if your interested. I'm actually flying back home to NC to speak with some investors about this option instead of multi-family.

shoot me a pm with details

Hello Devon,

I have a 4-plex for sale in Statesville, NC. Units can rent for $600/mo. Recently renovated with lots of new upgrades. Priced to sell at $165K.  Property has soooo much more potential. Let me know if your interested.

Nalo

Hi nalo, my only out of state clients want multiple units at a time. Thank you though! 

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@Justin Stamper

 I have no idea what you said that got removed twice, but I'd sure love to know!! lol.. I'm down dude. Lets tear it up. 

I feel like something crazy is happening and I don't know what it is