How do I market for off market multi families?

6 Replies

I own a SFH and duplex and I'm looking to move into apartments. I'm really interested in finding my first apartment building to purchase. I'm looking for off market deals, C Class properties that I can add value and forced appreciation.

I've started gathering a list of apartments within my area by driving around town and finding apartment buildings. Is there another way or am I on the right track? I've also looked up apartments on rental websites and craigslist to help build my list. I'm also in 2 REI groups but many are Flippers and 2-4 unit Buy Holds. I'd rather stay in my local area before going into other markets but understand that I might just need to go to other markets.

Any help is greatly appreciated! 

Amy.

Reach out to all the brokers around you. Reach out to them and tell them what you're looking for. They will go and find deals for you and begin to send them your way before the y put them on the market. 

@Amy Fowler ,

I work with a lot of sales brokers in your area (I'm a commercial mortgage broker), send me an email with your parameters and I'll see if any of my guys have deals that match your criteria. 

Unless you're a favorite on a commercial broker's speed dial list, the best way to find off-market deals is to do the same thing brokers do, and call building owners.  Get online, do some googling, and find out who the owners are and contact them directly.

@Andrew Beauchemin is right.  It's difficult to get on a commercial MF preferred customer list without a track record.  Maybe you can partner with an experienced MF investor with a track record.  That will open some doors in building relationships with commercial brokers.

Echoing what @Andrew Beauchemin said, you can find out owners of buildings by looking at property tax records on your county's appraisal site. if the owner is a LLC (which is usually the case for larger multifamily), go to your state's secretary of state website and look up the business in the business records search. i'm not familiar with pennsylvania, but that's how every state I've looked at before operates. there is usually an agent of record who oftentimes is the owner, however, for a larger, more sophisticated owner, it could easily be a lawyer or someone else.

if that fails, a broker is your best bet. they'll have the relationships with owners and other brokers you need. as others have said, it's hard to go off-market without a track record, but maybe by showing your current portfolio and explaining your desires, you may win someone over :)

@Amy Fowler - you won't get anything of value working with agents at this stage, without a proven close record. You should be targeting absentee owners who own more than two properties in the same town. You will find that they often have several properties and the longer they have owned them, the more options they might be looking for to liquidate. My off-market mailers to lists like this have generated several off-market options with investors looking to wrap up their investing career.

Most 4+ unit buildings that hit the active market will be priced way higher than you want to pay. The difference with these lists above that I talked about is that your "deal" won't be as dramatic because you are buying from other investors. The dream scenario to acquire a large complex is through probate where several people now share in the ownership of a complex and none want to run it. I hope this helps.

@Andrew Beauchemin

@Michael Dang

@Bryant Patterson

@Jonathan Greene

Thank you for help. I definitely feel like there's a lot of research that needs to be done. Which is completely fine with me. My biggest hurdle is finding a mentor or someone to partner with on a deal. I have to do a better job networking. Having a mentor is something I really need as I move forward in building my portfolio. 

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