In the Dallas area, I buy low income single family homes and have 500+ units. Now I want to get into the Multifamily game, but I’m finding it hard to get started even finding deals. I have the financing and the manpower, just need deals. What’s your best advice?
@Jordan D'Silva Are you looking for smaller multifamily (less than 50 units) or larger multifamily (more than 50 units)?
@Charles Seaman smaller to start off
@Jordan D'Silva if looking for smaller deals, try a mail campaign or driving for dollars. If doing larger deals (75+), start networking with brokers, assuming you are properly educated in the space, and have somebody experienced in large MF on the team, and have your capital stack in place.
The answer that @Rick Martin gave was spot on.
@Rick Martin thanks so much! I really appreciate that advice
Reaching out to brokers and building relationships is the best way to increase your deal flow. What you want to have is a buying criteria before you do that and to understand that the brokers can potentially try to vet you to see how serious you are. The thing they want the most is to work with people who can close- and if you give them any concerns as to how likely you are to fail to do so they may not take you seriously. you want to be confident and show your credibility- even if you have not done a deal- you not only sounding but being educated plays a key role. Have the proper knowledge needed to successfully do a deal or find a partner whose experience you can leverage and then bring them up when reaching out to the brokers.
Best of luck!
Which resources are you using currently to find multifamily deals that you're interested in?
@Rick Martin what is a better options if I’m buying my first investment property, heloc or cash out refi
@Camile Case I had been looking at LoopNet, sending letters to and cold calling small Multifamily owners and casually looking for brokers to cold call. But based on this feedback, I think I’ll make finding good broker relationships a priority
There are a few other commercial real estate websites out there and yes relationships are best for continued success!
@Jordan D'Silva I have about 5 decent complex’s currently listed in Dallas on my list. What’s your price point and what area would you like to stay in?
@Jordan D'Silva . MultiFamily is very different than SFH. In my opinion it's all about networking and building your team.
@Hunter Crowder price point 1M and below and area preferably North Texas, but I can work in Central Tx as well
@Jordan D'Silva There's so much great advice on this feed! I'll add one more piece of info that we realized early on... why not start big vs small? You'll have much better economies of scale starting with 100+ vs 50... (PM will be MUCH less and you'll have more income to support the same size staff you'd need on a 50 or a 100 unit). It sounds like you've got some key pieces in place with the financing and manpower - focus on the broker relationships and find a good mentor if you're going to go big. Our first deal was 173 units and then 236 units after that - couldn't have done it without the broker relationships <-- which we secured through leveraging our partner/mentor's name and track record. Best of luck - you're in for a wild (but very fulfilling) ride!