We have a few smaller apartment properties(12-24 units) for sale in the rural Midwest. Looking for some creative ways to market them to potential buyers. We have done the Bigger Pockets Marketplace, Loopnet and mailers to similar property owners in the past.
What are some ideas you have had success, with properties, that you have sold?
Offer seller financing! I would be very interested in that!
@Matt B. try listing them on Craigslist in nearest major metro area. Offer seller financing, like @Dante Pirouz suggested. Approach local property management companies and local REIAs and let them know you have apartment buildings to sell and ask them to spread the word. Where in the Midwest are these apartments located? I know an experienced multifamily investor who only invests in small-town markets in places like Iowa and Oklahoma. Email me, and I'll put you in touch. Good luck!
I wish not being able to sell apartment buildings was a problem in my area lol, i would be buying everything!
@Matt B. Have you tried local property managers? They seem to have a good idea who wants to buy and sell around here. If there aren't any maybe move up to whatever decent sized town is around and try the same.
List them with a legit commercial agent with access to Costar. You need to find the real buyers.
try and find the other owners in the area and see if anyone ones more then one and send them a letter
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Wow, in the hottest apartment market America has ever seen, I'm surprised it's a problem. Particularly surprised Loopnet didn't bring you lots of prospective buyers, unless you're pricing them at Big City cap rates while these are in the country. Everyone checks Loopnet eventually.
Make sure you listings have floorplans, 25+ photos, REAL numbers for the past 12 mos., etc. I see too many listings with too little info.
What cap rates are you trying to get for them? Maybe you are just asking too much. If you're saving 5% on real estate commissions, are you passing this on to the buyers?
Is management in place? Buyers like to know that they are being well-managed now and maybe they'll be able to keep the managed in place.
Are they listed on Zillow? Doesn't cost anything. Just another place on the web to make sure stuff is listed.
I do see buildings listed on Craig's List occasionally. Keep forgetting to check there, myself.
What about at local REIA clubs, esp. with the smaller stuff? If the groups are listed on Meetup, you can post them in the Discussions area for each group, plus push them during the clubs' "Haves and Wants" discussion.
Thanks for the replies. We are wanting to cash out our equity for other projects, so seller financing probably won't be offered. If we wanted to offer financing, we might as well just keep the properties.
We've found Craigslist to be where the bottom feeder properties are and Zillow really isn't geared for multifamily, though we do use it for single family. They were just put on Loopnet a few days ago and have seen some interest. They are priced modestly at a 10 cap.
I think most people do not quite understand what we mean by rural Midwest. We do not exactly have the options larger metros would have. The nearest REIA is about 3 hours away. Ditto for actual property management companies. Local real estate brokers don't really specialize in selling this sort of property and they are priced under what commercial brokers like to sell. The properties are small enough to be run by resident managers, which is how a regional management company would likely manage them.
We've been mailing to other owners, but still a little early to notice any responses.
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