How do I get started in finding and purchasing a 20-40 unit Appartment building in my city? Rochester NY. Any tips on how I can find a good cash flowing property?
Rental Property Investor · Mankato, MN · Member since 2018 · 14 posts · 26 votes
7y
@Ronald Neverenko have you heard of Melissadata.com? It is a list source where you can have them sort through public data and some they pay to acquire. You can have them find people who have owned their properties for more than say 7 years, mortgage being close to paid off or totally free amd clear. People who have owned for a while maybe more likely to sell. You can put in certain demographics like age to narrow the focus because people that are closer to retirement age may want to be free of medium size apartments like that. There are many other parameters such as neighborhoods or specific building requirements like square footage that you can also add to narrow your search. You can then get a list you may even be able to get emails and phone numbers and then you could send postcards or you could literally try and contact the owners. It cost about $50 or maybe more depending on how large a list you get but I would try and narrow down as much as possible. Hope this helps!
Rental Property Investor · Fremont, CA · Member since 2017 · 125 posts · 75 votes
7y
You'll want to get to know the brokers in your city. Sometimes national brokerages such as CBRE, Marcus & Millichap may all have offices that service 75-and-under unit assets. Check if there are multifamily meetups in your area, there may be some people who are familiar with who the brokers are.
Rental Property Investor · Marion, OH · Member since 2019 · 2 posts · 0 votes
7y
@Matthew Drouin also, for my own info (I’m also looking), what’s a good cash flow per door in an apartment that is in a lower income area (I’m in a rural area of Ohio wheee 1/1 goes 375ish and 2/1 goes 425ish)
How do you value on a per-door basis for cash flow?
Rental Property Investor · Mankato, MN · Member since 2018 · 14 posts · 26 votes
7y
@Ronald Neverenko have you heard of Melissadata.com? It is a list source where you can have them sort through public data and some they pay to acquire. You can have them find people who have owned their properties for more than say 7 years, mortgage being close to paid off or totally free amd clear. People who have owned for a while maybe more likely to sell. You can put in certain demographics like age to narrow the focus because people that are closer to retirement age may want to be free of medium size apartments like that. There are many other parameters such as neighborhoods or specific building requirements like square footage that you can also add to narrow your search. You can then get a list you may even be able to get emails and phone numbers and then you could send postcards or you could literally try and contact the owners. It cost about $50 or maybe more depending on how large a list you get but I would try and narrow down as much as possible. Hope this helps!
Rental Property Investor · Mankato, MN · Member since 2018 · 14 posts · 26 votes
7y
@Ronald Neverenko in small multifamily yes but we are now doing large multifamily and from the many people we know doing it yes they have gotten opportunities at purchasing through mail campaigns. Plus as someone else mentioned in the forum going to Meetups and Reia’s in the area where you want to buy could get you one. At the ones we have gone to back here in MN they do a “Have and Wants” time where oeiple can stand up and say what they are looking for or tell people what they have available or need. Someone may know someone also that they tell about and connect you together. We have found people are so nice and generous at these! I would highly recommend them!
Developer · Rochester, NY · Member since 2016 · 406 posts · 339 votes
7y
@Ronald Neverenko ok so you would be looking for a deal you could buy between $1.7 and $2.2 million if you were buying in a somewhat decent area. So you would need about $500k to buy that type of deal or finance it creatively.
What types of deals have you bought in the past? Do you have a track record?
@Matthew Drouin Yes that is correct $1.5 mil to $2 mil. This will be my first Multi Family apartment building that I have ever purchased. I've mainly been flipping properties with my brother for several years now. So this would be the first purchase of a Appartment.
Developer · Rochester, NY · Member since 2016 · 406 posts · 339 votes
7y
@Ronald Neverenko ok great! So at least you have some good experience. I would start with increasing your knowledge about Multifamily by picking up some good books about the subject. @BiggerPockets .com has some and you may also want to check out David Lindahl's Multifamily Millions. Surround yourself with other investors doing Multifamily deals by going to meet ups. There are several in our area. I happen to host one called #buybacktheroc: building wealth in real estate on the third Thursday of every month. Check us out. Check out Freedom First REIA they are having a fall summit this month. Get obsessed. Go for it!
Developer · Charlottesville, VA · Member since 2018 · 4k+ posts · 4k+ votes
7y
Some of the the best ways to find off market commercial and multifamily properties is to compile lists through a paid service like List source, Reonomy and CoStar or you can use free resources like Loopnet, CREXI, Craigslist, tax database, brokers, property managers, title companies, environmental consultants, building inspection companies, appraisers, landscapers and other companies that service commercial and multifamily properties and driving for dollars.
The real key is in how you approach the owners and then the follow up.
You can send letters and email but cold calling is by far the most effective method but you really need to know what you’re doing, how to open the conversation, what questions to ask and more importantly when to listen and not talk. Most importantly you need to convey confidence and assurance you are a player and not just wasting their time. Remember you are building relationships with the owners.
Follow up is crucial and where 90% of investors and sales people fall short. You have to consistently follow up in a meaningful way and you will get deals.
Investor · Cleveland, OH · Member since 2015 · 99 posts · 42 votes
7y
Most properties that hit the MLS or Loopnet have already been shopped around to the big well-known commercial investors in your market, therefore if they passed it's probably not a good deal. I have ownership in 100 units (30 unit, 22 unit, and 48 unit) by calling "For Rent By Owners" asking if they want to sell and I started in October 2018. Hardly anyone does it and it's a great way on finding an off market/good deal. Good luck!
Most properties that hit the MLS or Loopnet have already been shopped around to the big well-known commercial investors in your market, therefore if they passed it's probably not a good deal. I have ownership in 100 units (30 unit, 22 unit, and 48 unit) by calling "For Rent By Owners" asking if they want to sell and I started in October 2018. Hardly anyone does it and it's a great way on finding an off market/good deal. Good luck!
I was searching loopnet.com this afternoon and I was thinking the same thing, if they still available it is because something is not right, otherwise they will never make it. In a year or less you and you already own 100 units?!, you are pretty good! Congratulations, it won’t hurt if you shear some good knowledge for the future investors!!.
Most properties that hit the MLS or Loopnet have already been shopped around to the big well-known commercial investors in your market, therefore if they passed it's probably not a good deal. I have ownership in 100 units (30 unit, 22 unit, and 48 unit) by calling "For Rent By Owners" asking if they want to sell and I started in October 2018. Hardly anyone does it and it's a great way on finding an off market/good deal. Good luck!
I was searching loopnet.com this afternoon and I was thinking the same thing, if they still available it is because something is not right, otherwise they will never make it. In a year or less you and you already own 100 units?!, you are pretty good! Congratulations, it won’t hurt if you shear some good knowledge for the future investors!!.
I just call people trying to rent their properties and ask if they’d rather sell. Most say no, but if you talk to enough people, you’ll get some that say yes.
@Rachael Wick So I just purchased a list of 37 Appartment complex's located in my county for $50, ranging from 30-40 units each. What should I do next? Direct mail them? Any tips on how I could make this work out on my behalf?
Rental Property Investor · Mankato, MN · Member since 2018 · 14 posts · 26 votes
7y
@Ronald Neverenko
Google - doing a direct mail campaign. Also, Dave Lindahl I think it is has a youtube video about how to get people to actually open your letters and catchy phrases to begin the letter with. What color of paper even. People keep track of what works most often so dig that info up. They also say to send another after the first on like 1-2 months afterward. They say it may take several contacts but don’t get discouraged. Maybe see if you can find phone numbers too. I listened to one very courageous investor who went to their doors, knocked and asked. Have fun!!!
Rental Property Investor · Mankato, MN · Member since 2018 · 14 posts · 26 votes
7y
@Ronald Neverenko Yellow and supposedly taping a piece of candy to the letter so it bulk up the envelope gets a better response for opening as well. Hand address as well. If you don’t have many its not bad but if you go to a community where you are contacting lots of people there are printing businesses out there that have a machine that literally make the letter and envelope look like it was hand written. This is of course at a cost.