Best way to find 5+ unit properties off market

Multi-Family and Apartment Investing
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Best way to find 5+ unit properties off market

Ijeoma P.
Rental Property Investor · Atlanta, GA · Member since 2020 · 21 posts · 8 votes

Hi friends,

New investor here. I am ready to invest in a multifamily property 5+ but having trouble finding deals...looking in various markets in GA, TN, FL, PA and OH. I've figured out my finding strategy, networked with brokers and realtors a couple of wholesalers, checked available sites on my own and no dice still after two months. What am I missing?

R,

Ije

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Steven Nguyen
Rental Property Investor · Los Angeles · Member since 2020 · 88 posts · 74 votes
5y

Hello Ijeoma,

All the good deals are found OFF market and are typically created.  If you are well known and brokers know you can close, you can get pocket listings from brokers, but that is hard if you are a newer investor.  I am struggling with this same issue right now.  Brokers don't like to waste time and typically bring their best deals to people who can close.  The best way is to surround yourself with an experienced team and leverage their "clout."

I've been targeting AL and OK for 3 months and have made at least 10 offers, but still have nothing.  I am targeting 5-100 units with value add potential.  Multi-family has a high barrier to entry, but just 1 good deal can drastically change your life.  It just takes persistence and patience.

I hope this helps.

Steven

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  • Charles Carillo
    Rental Property Investor · North Palm Beach, FL · Member since 2018 · 2k+ posts · 1k+ votes
    5y

    @Ijeoma P.

    Have you considered pulling property lists and going straight to owner?

    0Reply
  • Eric James
    Investor · Malakoff, TX · Member since 2017 · 2k+ posts · 2k+ votes
    5y

    You're a first time investor looking for an OOS multifamily. That would be too risky of a plan for me.

    0Reply
  • Arthur Neves
    Rental Property Investor · Orlando, FL · Member since 2017 · 56 posts · 33 votes
    5y

    @Eric James

    What’s your criteria? And plan?

    Properties are out there, just will fit investors or not depending on what they are looking for

    0Reply
  • Eric James
    Investor · Malakoff, TX · Member since 2017 · 2k+ posts · 2k+ votes
    5y

    I buy local. OOS investing is too risky for me.

    0Reply
  • Brandon SturgillBusiness Member
    Real Estate Broker · Columbus, OH · Member since 2013 · 3k+ posts · 1k+ votes
    5y

    @Ijeoma P. working multiple brokers is tough...sure, the first call probably went well, but this is a relationship business...I've sourced 7-deals this month and none of them went to folks that were running the broker circuit. Usually when I get a call from an investor spouting their criteria I delete them from me database immediately and send out a warning to colleagues...not saying you're doing that, but focus in on a couple of markets and locate the top 1% of agents/brokers...establish weekly calls and make sure you're pre-approved and ready to pull the trigger. Be honest and transparent up front.

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  • Steven Nguyen
    Rental Property Investor · Los Angeles · Member since 2020 · 88 posts · 74 votes
    5y

    Hello Ijeoma,

    All the good deals are found OFF market and are typically created.  If you are well known and brokers know you can close, you can get pocket listings from brokers, but that is hard if you are a newer investor.  I am struggling with this same issue right now.  Brokers don't like to waste time and typically bring their best deals to people who can close.  The best way is to surround yourself with an experienced team and leverage their "clout."

    I've been targeting AL and OK for 3 months and have made at least 10 offers, but still have nothing.  I am targeting 5-100 units with value add potential.  Multi-family has a high barrier to entry, but just 1 good deal can drastically change your life.  It just takes persistence and patience.

    I hope this helps.

    Steven

    1Reply
  • Nick Robinson
    Rental Property Investor · Murrieta, CA · Member since 2020 · 338 posts · 344 votes
    5y

    @Ijeoma P.
    I am not sure how everyone else feels but the brokers hold all the cards.  You need to develop a relationship with brokers to try to get deals.  If you have never done a MF (5+units) deal you just need to get a deal done.  Most brokers will blow you off or not take you seriously if you have never done a deal.  Which makes sense because tons of people call them looking for deals and they do not want to waste their times with people that can't close.  It is a crazy business but it is based on relationships and can be extremely lucrative once you get in it.

    0Reply
  • Erickson Sainval
    Investor · San Diego, CA · Member since 2019 · 326 posts · 266 votes
    5y

    I would suggest focus on one market. Get a list of commercial properties and start getting a hold of the owners.

    As a first timer unless you have the cash, lender, and experience it will be hard for brokers to take you seriously. Of course, still keep building those relationships and provide them your criteria and feedback on the deals they send.

    0Reply
  • Jeffrey Donis
    Investor · Durham, NC · Member since 2020 · 1k+ posts · 691 votes
    5y

    I have heard that people have success from looking in Facebook groups based on the markets you are in. I have not tried but worth looking into!

    0Reply
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