Investor · Rocky Hill, CT · Member since 2013 · 373 posts · 299 votes
So reading through and listening to the podcasts a couple concepts come across loud and clear. You will find deals through networking once you are part of the investing community if you work with ethics and diligence. If you are vigilant and good with analysis you can get a deal either pre-MLS or early MLS entry of a property to market.
Does anyone specifically target the multi-family properties which have been listed for a long time? Does the motivated seller due to fatigue occur in the Multi's the same way that they do in the SF's?
Does anyone target multi's which are empty specifically, as most investor's buy on the value of the cash flow/NOI?
Investor · Los Angeles, CA · Member since 2013 · 32 posts · 3 votes
13y
A lot of times a 4 unit or less is a stepping stone to build up equity to get a commercial loan on a much larger property. In doing so, a seller of a multifamily will list their property at a Present Value price needed in order for them to have the capital to move up. So if they are 40k short from their goal, they will list the property 40k over market and cross their fingers. Otherwise they just wait until they have that 40k equity saved and just sell it at the market price at a later date. It just never hurts to leave your property on the market and amortize your way to your goal. Make sense?
New York City, NY · Member since 2013 · 5 posts · 0 votes
13y
Bill,
My limited experience tells me that when a perfectly good looking multi is sitting on the market a long time, there is a reason. I have also seen that in these instances a property sits on the market because of an owners unrealistic price expectations, perhaps brought about by an over zealous agent who promised too much.
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
13y
I agree. Long ltimes on the market indicate an owner who is NOT motivated, or who is unrealistic. They could give up, or wake up, at some point though.
Investor · Los Angeles, CA · Member since 2013 · 32 posts · 3 votes
13y
A lot of times a 4 unit or less is a stepping stone to build up equity to get a commercial loan on a much larger property. In doing so, a seller of a multifamily will list their property at a Present Value price needed in order for them to have the capital to move up. So if they are 40k short from their goal, they will list the property 40k over market and cross their fingers. Otherwise they just wait until they have that 40k equity saved and just sell it at the market price at a later date. It just never hurts to leave your property on the market and amortize your way to your goal. Make sense?