Finding The Multi-Family Projects

[Andrew David]

My partner and I are looking to invest in multi-family and we are having difficulty finding properties to invest in! Currently we are looking for 5-50 units deals. We are located in southern New Jersey close to Philadelphia and Atlantic City NJ. We are interested in PA, DE and NJ markets. 

We have partnered up with a local commercial broker but that hasn't provided much fruit yet. We are also on sites like realtor.com/mls etc. but they don't seem to have the size of properties we are seeking. 

I'm not sure if properties of this type are thin, or we are not sourcing them properly. 

Any advice is greatly appreciated! Thanks!

Andrew

[Anthony Chara]

Hi @Andrew David, I agree with @Patrick Liska and @Hubert Washington. If your brokers aren't finding you what you're looking for, take action on your own. Find additional brokers that specialize in your target markets. Also, contact the owners directly. If you have a relationship with a local Title Company, set up a meeting with someone from their Commercial branch. Usually, the people that handle Residential Closings are not the same people that handle Commercial Closings. Many Title Companies can provide you with a list of commercial properties in your target market anywhere in the country, not just their backyard. Then, you mail the owners a letter telling them that you're actively looking for a property like theirs. If they're interested in selling, ask them to give you a call. That's it. It really is that short and simple. You should also let them know that you're not looking for a listing, because you're not a broker (assuming you not). You're looking to add to your own portfolio.

With this simple little letter/tactic, I've received anywhere from a 5%-11% response rate.

There are also Letter Campaign companies out there that will do this for you for a small fee. Just google Yellow Letter Campaign.

Good luck to you Andrew!