Looking for advice on finding a bank owned Multi-Family Property

Multi-Family and Apartment Investing
14yFollow

Looking for advice on finding a bank owned Multi-Family Property

Andre Lewis
Investor · New Orleans, LA · Member since 2011 · 16 posts · 1 vote

Hello BP,

I need your advice. I have been calling several banks seeking their bank owned apartment complexes. i have had no success. I am looking for apartment complexes with 50+ units.

Are their any experienced investors that can possibly help me out or give me some advice?

Thanks in advance.

1Reply
15 views

Most Popular Reply

Joel OwensBusiness Member
Moderator
Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
14y

Are you a cash buyer with funds to close or are you just trying to be a wholesaler with not even a penny to your name??

If a wholesaler you need to forget that route.You will be laughed at by the banks and they will not take you seriously.

With apartments there is performing (90% plus occupancy with paying every month), sub-performing (usually 40 to 75%) is the sweet spot,and then totally vacant.If occupancy is less than 40% it will be really hard to turn around and by then the units have been stripped anyways so you treat as needing complete rehab.

Anything over 90% you can get a regular loan on.Anything under that is hard money or private money.Once turned around you will need to immediately sell after about 6 to 12 months of stable occupancy and payment or refinance to get rid of the high debt service.

Podcast Guest on Show #47
NNN Invest53 Reviews
WebsiteView Page
1Reply
See this reply in the discussion

4 Replies

Jump to latestLatest
  • Ken Latchers
    Hatfield, PA · Member since 2012 · 1k+ posts · 629 votes
    14y

    I am sure some of these go into auction or loopnet or even the MLS. Believe it or not, if you go Realtor.com, and choose Multi Family Housing, you may see some of those in your area.

    OTOH, I suspect there are far fewer of those (50+ units) than just calling up a bank. Compared to SF, they are not very common, and they are very much in demand.

    0Reply
  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    14y

    Are you a cash buyer with funds to close or are you just trying to be a wholesaler with not even a penny to your name??

    If a wholesaler you need to forget that route.You will be laughed at by the banks and they will not take you seriously.

    With apartments there is performing (90% plus occupancy with paying every month), sub-performing (usually 40 to 75%) is the sweet spot,and then totally vacant.If occupancy is less than 40% it will be really hard to turn around and by then the units have been stripped anyways so you treat as needing complete rehab.

    Anything over 90% you can get a regular loan on.Anything under that is hard money or private money.Once turned around you will need to immediately sell after about 6 to 12 months of stable occupancy and payment or refinance to get rid of the high debt service.

    Podcast Guest on Show #47
    NNN Invest53 Reviews
    WebsiteView Page
    1Reply
  • Darryl Dahlen
    Commercial Loan Officer · Southern Maine, ME · Member since 2009 · 782 posts · 415 votes
    14y

    What Joel said. These types of properties are hard to source directly from a bank. Either because the asset manager has gate keepers in place to keep the dreamers away (not saying you are) and/or the bank lists the properties with realtors and only accepts offers through them.

    0Reply
  • Andre Lewis
    OP
    Investor · New Orleans, LA · Member since 2011 · 16 posts · 1 vote
    14y

    Thanks for the advice guys

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free