Finding a Buyer's Agent

Multi-Family and Apartment Investing
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Finding a Buyer's Agent

Daivic Vora
Investor · Sunnyvale, CA · Member since 2021 · 7 posts · 5 votes

Hi BiggerPockets Community, 

I am an investor interested in finding an agent to help buy my first multi-family property. The location, however, is somewhat up in the air, fluctuating between a 3-4 cities. As a result, I would like to find an agent who is able to find properties in different cities, to determine which property would be the best pick. I was wondering

1) Where and how did you find your agent? I am new to the multi-family scene, and don't have any connections

2) Did you chose to consult an agent in your target city or one near by?

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Yang Lu
Investor · San Jose, CA · Member since 2018 · 36 posts · 19 votes
5y

You may be better off finding agents that specialize in each market. They will have the local connections and be able to find good deals for you. 

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  • Yang Lu
    Investor · San Jose, CA · Member since 2018 · 36 posts · 19 votes
    5y

    You may be better off finding agents that specialize in each market. They will have the local connections and be able to find good deals for you. 

    3Reply
  • Chris Davidson
    Real Estate Agent · Boise, ID · Member since 2016 · 1k+ posts · 888 votes
    5y

    @Daivic Vora, do you have a certain style property you are looking for and cant decide on which city? If not I would work on defining what you are looking for before looking for an agent in each city. Since you are new to the MF scene, you need to be more direct to be taken seriously. 

    What cities are you looking at?

    2Reply
  • Jonathan GreeneBusiness Member
    Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
    5y

    If the cities aren't nearby, it's not going to be worth any of the agents time until you pin down where you want to live (in one area showable by one agent) because if they can show you 10 just for you to decide to live in another city and buy with another agent, it's not a great use of their time. If the cities are close, you can use Bigger Pockets or local meetups to look for agents that specialize in multi and understand the terminology and requirements.

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  • Daivic Vora
    OP
    Investor · Sunnyvale, CA · Member since 2021 · 7 posts · 5 votes
    5y

    @Chris Davidson thanks for the reply! I am looking to invest in apartment complexes, specifically complexes that have 16-32 units. I am based in the Bay Area, so I am looking at cities like Fresno CA and Sacramento CA, but I have found great deals pop up all across America, so it is making me question if staying in California is the best option.

    Thanks, 

    Daivic
    @Chris Davidson

    1Reply
  • Daivic Vora
    OP
    Investor · Sunnyvale, CA · Member since 2021 · 7 posts · 5 votes
    5y

    @Yang Lu thanks I will try and look for agents near me! I saw you were from San Jose, and I am from the Bay Area as well, do you know any multi-family buyer's agents that you could refer?

    Daivic

    0Reply
  • Chris Davidson
    Real Estate Agent · Boise, ID · Member since 2016 · 1k+ posts · 888 votes
    5y

    @Daivic Vora, what makes it a great deal? That will be the criteria you need to tell the agents you talk to. Wish I could help with if California is best for you or not, but that will come down to your goals and plans for achieving them. 

    1Reply
  • Yang Lu
    Investor · San Jose, CA · Member since 2018 · 36 posts · 19 votes
    5y
    Originally posted by @Daivic Vora:

    @Yang Lu thanks I will try and look for agents near me! I saw you were from San Jose, and I am from the Bay Area as well, do you know any multi-family buyer's agents that you could refer?

    Daivic

     Daivic, awesome. Are you referring to buyer's agents in the Bay Area for MFHs? Or in another city?

    0Reply
  • Daivic Vora
    OP
    Investor · Sunnyvale, CA · Member since 2021 · 7 posts · 5 votes
    5y

    @Yang Lu Well I am mainly looking at cities like Fresno and Sacramento, so I am not sure if an agent based in the Bay Area would have any knowledge about those areas, or would those cities be too far away?

    0Reply
  • Jeff Zimmerman
    Real Estate Agent · Fresno, CA · Member since 2014 · 368 posts · 174 votes
    5y

    @Daivic Vora great question.  I agree with @Daivic Vora in that it's better to have different agents in different cities and areas you are looking into.  Real estate is a localized business and using an agent out of the area of where you are purchasing is only useful if you know the market already.  But if you are looking to gain expertise on certain areas, having a local agent is the best way to go.  Good luck and let me know if I can answer any questions about Fresno! 

    2Reply
  • Allen Wu
    Rental Property Investor · Member since 2021 · 335 posts · 193 votes
    5y

    @Daivic Vora

    I have a solid investment minded realtor if you need a referral. They are in California, Tx, FL, and AZ.

    1Reply
  • Matthew Irish-JonesBusiness Member
    Real Estate Agent · Buffalo, NY · Member since 2017 · 2k+ posts · 2k+ votes
    5y

    @Daivic Vora find a brokerage that specializes in investment properties.

    They can very quickly get you up and running with reports, data on market returns, and will have vendors set up for every situation.

    You can also set up a quick call to get an idea of returns for each specific market by speaking to a local investor focused brokerage

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    2Reply
  • Todd Dexheimer
    Rental Property Investor · St. Paul, MN · Member since 2016 · 3k+ posts · 3k+ votes
    5y

    Find 1 market and focus on it, stop looking at several

    You are not looking for a buyers agent. You are looking to build relationships with the agents in the market that list the type and size building you are looking for. This is not residential, where you find an agent to ride along in their car and show you properties on the MLS.

    Read this article: https://www.biggerpockets.com/...

    1Reply
  • Justin Goodin
    Investor · Indianapolis, IN · Member since 2018 · 1k+ posts · 756 votes
    5y

    @Todd Dexheimer I totally agree with this! That's one mistake I was making in the beginning by not narrowing down my market and focusing on 1 or 2 at once. 


    Taking a sniper approach instead of the shotgun approach has really helped me within the last year. 

    2Reply
  • Justin Goodin
    Investor · Indianapolis, IN · Member since 2018 · 1k+ posts · 756 votes
    5y

    @Daivic Vora I would narrow down your criteria more. City, size of multifamily, price, strategy, etc. I think that will definitely help!

    1Reply
  • Daivic Vora
    OP
    Investor · Sunnyvale, CA · Member since 2021 · 7 posts · 5 votes
    5y

    Hi @Justin G, I was looking at 16-32 unit apartment complexes in California. I had narrowed it down to Fresno and Sacramento, but I kept finding good opportunities elsewhere so I decided to look at different cities as well.

    1Reply
  • Daivic Vora
    OP
    Investor · Sunnyvale, CA · Member since 2021 · 7 posts · 5 votes
    5y

    Thanks @Jeff Zimmerman! I will definitely contact you if I any more questions pop up

    1Reply
  • Daivic Vora
    OP
    Investor · Sunnyvale, CA · Member since 2021 · 7 posts · 5 votes
    5y

    @Todd Dexheimer thanks so much for all the information!

    0Reply
  • Eduardo Aguilar
    Real Estate Agent · Sacramento, CA · Member since 2019 · 44 posts · 38 votes
    5y

    Hey @Daivic Vora- definitely excited for you. My sense is that this is your first time stepping into the investment space and so want to congratulate you if so! That being said, I agree with much of what's been shared already. With regards to selection of location, there is huge value on getting focused. The key here is to determine what your goal is as you will continue to find yourself chasing new opportunities in perpetuity without it. 

    Key to getting yourself on the right path is to have strong clarity in a few core area: (1) What is the end goal? Are you seeking cash flow, banking on longer term appreciation, or reducing W2 income tax liabilities? None of these are mutually exclusive, but even setting some prioritization in relation to these will be helpful. 

    In following up on the goal-setting question, another line of inquiry worth considering is where does the greatest potential for growth either in rental income or appreciation exists. I can speak to Sacramento being an excellent market in that it is a market with high demand with stable industries (government, health and education) that provide a strong base of renters with solid incomes. For example, I own an SFR rental in Tahoe Park which is less than half a mile from UC Davis Med Center which has a strong cash flow and a steady base of renters as a result of the proximity to UCDMC.

    Once you settle on location, I need to strongly echo @Todd Dexheimer's comment above as a successful real estate strategy is built on the foundation of a strong team that you can trust and is pulling in the same direction. There's no shortage of Realtors or real estate agents that could technically usher you through the purchase transaction, but you'll find that there are only a few that can actually be a trusted partner in helping you vet the properties to increase the chances of long term success. Key questions to ask when connecting with Realtors is (1) do they have any real estate investments, (2) what systems do they have in place to help analyze and assess the property, and (3) do they have access to reliable contractors. This last question is critical unless you have an existing network of reliable contractors in the area that you'll be investing in. 

    Finally, make sure that you're running your numbers based on very conservative assumptions. Use tools like Rentometer to assess market rent but use the lower price point to make sure that you're numbers still work as anything above that is pure profit. Hope all this helps. If Sacramento turns out to be your preferred market, hit me us as I've grown up in this beautiful city and have extensive knowledge of the various communities and of the market. Best of luck!

    2Reply
  • Kiera Underwood
    Real Estate Agent · Oklahoma City, OK · Member since 2019 · 956 posts · 600 votes
    5y

    @Daivic Vora I'd be happy to overview multifamily for you in OKC. Is it a market you've looked into at all? 

    1Reply
  • Gordon CuffePro Member
    Investor · Roseville, CA · Member since 2009 · 1k+ posts · 587 votes
    5y

    @Daivic VoraI have invested in Sacramento and out of state so  if you want to hear the good and bad stories and what to expect on returns, send me a pm. 

    0Reply
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