LoopNet for Multifamily???

Question

Any experience using LoopNet to purchase multifamily properties? And what type of loan options are out there for purchasing 5-30 unit complexes?

Spencer Hilligoss · Answer

@Benjamin Kaufman - Loopnet can be handy for analysis (underwriting) practice fodder and as a means of connecting with local brokers (once you are ready to speak with them competently). The only folks i've talked who have found deals on LoopNet have a system and a team member who analysis dozens/hundreds of deals and know that they'll have to work through that many to find a workable deal

Loopnet is a valuable resource, I just wouldn't spend time there expecting to find a deal. when I was getting started, I would spend time there to analyze deals, work on my underwriting and practice building credibility with brokers. It's good for that.

Tj Hines · Answer

@Benjamin Kaufman, typically what you will find with Loopnet is where deals tend to die. With that being said, I've heard a few players being able to discover a gem under a rock.

For multis 5-30 units, you want to contact all of your local community savings banks that specialize in commercial lending. The knock here with local banks, is you must guarantee the loan as it will be full recourse. The longest term usually offered with local community banks is 5-7 years. You have to determine whether the products their offering is compatible with your business plan and exit strategy.

Nasir El Ameer · Answer

@Benjamin Kaufman

As far as loopnet goes their are deals to be made.  But you have to know your numbers.

As far as loan options their are multiple options depending on your deal:

80%LTV for purchase

30 YR Fixed Loans or Arm Loans

Interest Only Loans

And 100% LTV with a seller carry back

Christopher Hunter · Answer

@Frank Maratta  Your local REIA meetings is the first place to start.    Networking with PM, Brokers, associations in the area you would like to invest in.

Frank Maratta · Answer

@Benjamin Kaufman

Most often times than not the cap rates will not in reality as advertised; you need to have some experience in what true expenses/rents will be as well as a good understanding of commercial loan products. Value add small to mid sized apartment buildings are what I am in the market for.

Apartments that are in service, close to fully occupied and managed well you will see a low cap rate usually.

Frank Maratta · Answer

@Christopher Hunter

Chris, where would you suggest Ben start to try to locate these types of deals? Any thoughts on strategies to find a commercial broker that will give investors ready to take the next step into bigger multis the time of day?

Benjamin Kaufman · Answer

Some of the deals advertise 8-12 cap rates, which doesn’t seem terrible to me. Is there some sort of catch?

Christopher Hunter · Answer

@Benjamin Kaufman  Loopnet is a place for dead deals.  You can go to LoopNet to learn how to analyze deals.  As for deal for 5-30 units that will be conventional, private money and hard money

LoopNet for Multifamily???

Most Popular Reply