Should I stay away from Loop net?

Should I stay away from Loop net?

Rental Property Investor · Hutchinson, MN · Member since 2019 · 42 posts · 3 votes

Why does Loop net have such a bad rep?

I have heard it’s where apartment sales go to die?

Well with an investor mind set isn’t that what I want? Dead deals that I can negotiate to a price that’s worth the investment? Or should I just stay away from loop net?

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Lender · Chicago, IL · Member since 2016 · 653 posts · 313 votes
6y

You can still find deals on on Loopnet. Underwrite a deal, get back to the broker with a response and a price that it would work at (even if it's way below ask), and tell them you're looking and ready to go. Ask them to send you their off market inventory or coming soon inventory. The key is relationship building, not the one off deals on loopnet.

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  • Lender · Chicago, IL · Member since 2016 · 653 posts · 313 votes
    6y

    You can still find deals on on Loopnet. Underwrite a deal, get back to the broker with a response and a price that it would work at (even if it's way below ask), and tell them you're looking and ready to go. Ask them to send you their off market inventory or coming soon inventory. The key is relationship building, not the one off deals on loopnet.

  • Rental Property Investor · Hutchinson, MN · Member since 2019 · 42 posts · 3 votes
    6y

    @Eric Johnson

    Thank you.

  • Lender · Chicago, IL · Member since 2016 · 653 posts · 313 votes
    6y

    Sure thing, let me know if you need help with anything else! I can set you up on financing if needed. Just give me a holler! good luck

  • Adam BrammerPro Member
    Rental Property Investor · Member since 2018 · 14 posts · 5 votes
    6y

    @Dominique Mitchell I don't think that any of the sites out there are 'bad' if they are presenting you a list of options that are out there. When I am looking for a new property, I use many sites in my search because a lot of them will have different listings than the others. Actually, I recently found an 11 unit complex on LoopNet and am in process of closing. If the numbers work and you do your due diligence I don't think there would be many issues with the way deals are presented. 

  • Property Manager · Blaine · Member since 2015 · 209 posts · 276 votes
    6y

    I always feel like if I was going to sell a building I would want it on loopnet. The only reason more deals aren't on there is because the broker with the listing wants to get both sides of the deal. Honestly, deals are hard to find so I don't blame them. Also, they want to work with proven closers vs the random phone calls and emails so I get that too. Just saying, it would be like selling a deal and not using the MLS and if it's my apartment put it on loopnet and offer it out to your favorite buyers.

    I just saw a deal that had been on loopnet for a million in Rochester For a year traded last week at 75% list.  Damn, I would have bought it at that price!  So it’s definitely worth watching.


  • Member since 2020 · 122 posts · 11 votes
    6y

    @Eric Johnson what type of financing?

    Let's say I wanted to buy a 10 unit apartment building with good cashflow, create a property LLC to finance it and close on the deal could I obtain financing in the newly formed LLC?

  • Lender · Chicago, IL · Member since 2016 · 653 posts · 313 votes
    6y

    @Account Closed I do small balance commercial and agency commercial nationwide. Yes you can close in an LLC or corporation, not a problem.

    Expect to put 25% down depending on credit and building DCR to meet 1.25 of NOI, thanks!

  • Rental Property Investor · RI · Member since 2017 · 94 posts · 52 votes
    6y

    @Eric Johnson

    Do you have a website for the lender you work for?

  • Lender · Chicago, IL · Member since 2016 · 653 posts · 313 votes
    6y

    @Jeff Bousquet I run my business as a brokerage. I have a confidential list of lenders that I use for pricing on scenarios. My website is in my signature.

    Thanks!

  • OH · Member since 2014 · 454 posts · 227 votes
    6y

    @Dominique Mitchell

    I check loopnet daily. I’ve bought a few properties that were listed on the site. You’d be surprised what you can find. The good ones go fast and even faster in this market!

  • Developer · Cincinnati, OH · Member since 2018 · 1k+ posts · 3k+ votes
    6y
    Originally posted by @Nik S.:

    @Dominique Mitchell

    I check loopnet daily. I’ve bought a few properties that were listed on the site. You’d be surprised what you can find. The good ones go fast and even faster in this market!

     I agree with Nik.

    When I was starting out, I got my best deals from Loopnet. Now, I get about 1 good deal a year because most of my deals come from brokers who forward the deals to me before they even list them on Loopnet.

    And talking about brokers...

    Loopnet is a good place to meet brokers. The property they listed on Loopnet might not be good for you but you can contact them and get a feel on how open the seller is on a price significantly lower than asking. Obviously, this will work better for properties that have been on the market for a while. If they're open, submit an LOI. Regardless, tell the broker what you're looking for and meet them and treat them to lunch or coffee and start building relationships.

    Bottomline, Loopnet can be a good source of deals and definitely, it's a way for you to meet commercial real estate brokers.

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