How do I find multi-family 5+ units?

Question

Newbie here looking for guidance from all you experienced gurus on the forum. I am looking to make my first of what I hope to be many real estate investments. I would like to find buy and hold opportunities in multi-family properties of 5+ units.

I have no deals in my funnel right now to evaluate and would like to know how are you guys finding your deals.

I don't plan on jumping on the first thing I come across and want to start looking at as many deals as possible.

I am grateful for all input.

Joel Owens · Answer

The hard part for any new buyer is to be taken seriously by a commercial broker. For a commercial broker if they know experienced buyers that will take property off of their hands fast and close quickly with little to no issues already then it is harder for you to get into that circle.

How does a buyer get taken seriously? Before contact have a plan and show that broker you are organized and have a clear goal. Brokers can't stand flaky buyers with no purpose and direction and talk in generalities all over the place.

Create a resume for the broker showing your plan and what financing you will be using and what your target property is.

I work with new buyers often and they tend to be buying multi-million dollar properties. The key is for them to follow the process the broker has outlined. It's fine to ask questions to understand but not to argue. If the buyer is controlling with no experience and direction then the broker typically throws that lead away as going through a transaction with them would be just too painful.

Cassie Sherie · Answer

@Gino Barbaro  great advice as always! 👌

@Justin Cabral I highly recommend going to jakeandgino.com for Multifamily investing I've learned so much in such a short time...seriously... reading the blogs, listening to the podcasts, they also have a book and several Udemy.com courses that are to the point and detailed or coaching options...no B.S. garbage like a lot of those crappy scumbag "guru" courses  that are out there...these guys are legit and really do want to help people. With that said there's obviously a wealth of information here on BP also try doing the BP "FREE COURSE" under the Education tab...you'll get a good overview on REI with that. Just starting out it really comes down to the time and effort you put into learning as much as you can...how serious you are, and will you do whatever it takes? There's a lot to learn... many strategies, lots of different components and people that come into play that you need to know about... I actually enjoy it! to me it's interesting and fun! 😊 take lots of notes so you can refer back and then organize the notes accordingly. I've been learning about multifamily/investing for a couple weeks now and I have roughly 50 pages of notes from podcasts, videos... and a bunch of blogs that I've bookmarked. Educate yourself, develop the vocabulary so you are able to speak to other real estate professionals intelligently...With anything the more you put into it the more you'll get out of it, build a solid foundation...then when you're ready take action!  👍

Paul Timmins · Answer

@Justin Cabral

To find 5 units go to IREM.org search for ARM certified property managers. Call 5 ask them what they see expenses running per category per unit. What do they see them selling for per unit, what is the market occupancy rate. What are the market rents? Ask them if they know anything coming up for sale. Great way to pick up some good info and possibly a deal.

You can also search NARPM.org for the RMP (Residential Management Professional) and MPM (Master Property Manager) certified.

Go to loopnet search for commercial brokers in the area you are looking at call them see if they know anything coming up for sale.

Paul

Account Closed · Answer

A local real estate agent might be able to give you listings to start analyzing.  As we know, often the deals in the MLS are not the best ones, but if you are looking for practice on analyzing properties, an agent will have access to several for you.

When looking at 5 -10 unit buildings, I have found that the MLS has some good deals.  Due to the lending differences between 1-4 unit buildings and 5+ unit buildings, the 5+ unit buildings often get overlooked by smaller investors and larger investors are looking for 20+ unit buildings.  If you find the right agent, he or she may be able to help you find the sweet spot in your market.

Sterling White · Answer

Do your own marketing @Justin Cabral and track down the owner of the desired multi-family property you want. The owners of these multi-families are public record so you can send them a letter expressing your interest or you may have to dig deeper in most cases to find the owner if the property is owned by LLC.

Hope that helps

Justin Cabral · Answer

Awesome tips! This was very helpful. Thank you.

@Paul Timmins nice pic with Barbara

Judith French · Answer

Excellent advice - as a newbie to multifamily investing I have certainly found your post to be very useful.

John Cohen · Answer

@Justin Cabral don't discount driving for property either. Drive neighborhoods you like and write down addresses for the multifamily and direct market or cold call the owners

Alex Hively · Answer

@Justin.

Alex Hively · Answer

@Hustin

I second Paul Timmins's suggestion. What he said definitely has helped me out in serching for multifamily apartments.

Alex

How do I find multi-family 5+ units?

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