Off market... lets say 20 unit Help

[Justin Hannah]

So this is not pertaining to any specific property just yet but my question is, if i soon give an offer or LOI for lets say a 20 unit complex that i identified through direct mail and my cold calling efforts, what team members will i need to help me complete the deal? So i have bought several residential multi family properties before and for one, they seem easier only because i am familiar with all the due diligence that i need to do and two, they have all been on market so i was working with an agent and title company. Do i call a local commercial broker and offer to pay them to help me through the process? Hire RE attorney that knows the ins and outs? i just feel like there is more to the commercial side with reviewing all the leases, property disclosures, surveys, inspections and so on that i might miss something for my fist couple deals of this size. Maybe im way off in my thinking. Any input is much appreciated! Thanks!

[Tyler Kastelberg]

@Justin Hannah

Properties with less than 20 units have the highest default rate in the industry. This is true for a variety of reasons, but one of the biggest culprits is lack of experience with the buyer.

You're thinking about the right things, a team is crucial. The top 3 resources that I'd want before buying a 20 unit ...

1) A property manager who I trust and with whom I've worked with in the past

2) An evaluation of the market from an experienced analyst using local knowledge (perhaps from the property manager)

3) A source of money, whether it be you, a bank, an investor, or all three.

Attorneys, accountants, brokers -- all are important, but they come later in the process.