Investor · Philadelphia, PA · Member since 2015 · 172 posts · 58 votes
I know when it comes to SF and small MF you can look for motivated sellers through list sites, but how can you find a good deal when it comes to apartment buildings? Are there motivated sellers when it comes to apartment buildings (5+ units, possibly around 30-50 units, maybe more)? Are there foreclosure bargains to be had? What criteria are there for buying apartment buildings? Any input is appreciated as always.
Developer · Charlottesville, VA · Member since 2018 · 4k+ posts · 4k+ votes
6y
@Ben Feder yes there are motivated sellers and forecloses. Like anything else right now you need to constantly be looking at deals.
Some of the the best ways to find off market commercial and multifamily properties is to compile lists from city and county websites if available or through a paid service like List source, Reonomy and CoStar or you can use free resources like Loopnet, CREXI, Craigslist, tax database, general networking, 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.
Developer · Charlottesville, VA · Member since 2018 · 4k+ posts · 4k+ votes
6y
@Ben Feder yes there are motivated sellers and forecloses. Like anything else right now you need to constantly be looking at deals.
Some of the the best ways to find off market commercial and multifamily properties is to compile lists from city and county websites if available or through a paid service like List source, Reonomy and CoStar or you can use free resources like Loopnet, CREXI, Craigslist, tax database, general networking, 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.
Rental Property Investor · RVA · Member since 2016 · 5k+ posts · 4k+ votes
6y
@Greg Dickerson put it very well. Cold calling is extremely effective, and it takes a lot of dedication. One of my meetup attendees has VAs cold calling for him, 2 of them doing 35 cold calls a day each. He produces a lot of great deals out of it, and I'm sure it took him a long time to get them to start producing.
Specialist · Grand Rapids, MI · Member since 2016 · 1k+ posts · 611 votes
6y
@Ben Feder
Cold call and build relationships through many interactions. The problem you also have to overcome is seller may be motivated to sell to a qualified buyer in their perception but may not perceive you that way. Also if they are smart enough to get a big deal like an apartment then they likely are cognizant they can get top dollar in this market.
Rental Property Investor · Doylestown, PA · Member since 2008 · 1k+ posts · 1k+ votes
6y
@Ben Feder - I believe real estate is all about networking... and the further you get up the ladder in terms of deal size, your connections become even more important. I bought 3 commercial properties in the past year and all 3 were off market deals that I found out about through connections (brokers and other investors). And now I am looking at a deal that I found out about from my architect that is currently drawing up designs for one of the commercial properties and vacant land I bought last year. Finding properties through networking is time consuming at first (meeting for coffee, phone calls, meeting for lunch, emails, follow ups, looking at on market deals with brokers, talking with everyone...) but at some point it just starts snowballing.