Looking for multi-family units

11 Replies

I’m in Houston, Texas and I want to start out in a multi-family unit but for some reason it’s been hard for me to find some and let alone for a decent price range. Any suggestions?

Originally posted by @Taryon Coffey :

I’m in Houston, Texas and I want to start out in a multi-family unit but for some reason it’s been hard for me to find some and let alone for a decent price range. Any suggestions?

For a beginner there are four primary options:

* loopnet
* MLS

* real estate investment clubs 
* Generate your own leads by calling owners (very difficult)


the best source is brokers who make calls to owners and bring you deals but it’s hard to get those deals unless you have a track record 

Agreed with @Cody L. . I have long term interest in MF, so even though I don’t have the cash to buy right now, I try to network with the brokers and players today so if and when the time comes I’ll have my network ready.

Network as much as you can. Sometimes stuff gets posted on Facebook (although be it not that good), and there are some off-market companies you can speak to here like Sanmore Investments that at least allow you to see what’s out there, what kind of cap rates you can expect, etc. Meet as many brokers as you can, but be advised they get paid when deals close, so they won’t spend much time on you if you’re a tire kicker. 

2 good posts above. Also factor in that the majority of Multi-fam. deals will be dealing with an investor who is selling as well. That may not mean that they are expert negotiators, but most likely they will have much more experience in RE than the traditional home owner who has only bought or sold SFH.

Good luck, keep reading, networking, and looking to give solutions to people's problems. 

@Taryon Coffey . I have been looking locally in my small town to house hack a multi family. I have made contact with all of the local brokers and asked them to call me if they hear something. I also got pre qualified with the best Mortgage broker in town. He has also reached out to people for me.

I think you’ll get a pocket listing come your way if you can convince brokers that you’re ready to buy.

Sign up for and listen to the Old Capital Podcast. If your looking for a decent sized (30+ units) MF building, the large % of them will be controlled by a MF broker who specializes in apartment sales. These MF brokers are not interested in tire kickers and can sniff one out quickly. The principle buyer on the podcast says that a very small % of the 7000 units they have bought in the last few years were directly from owners without a broker involved. You should be looking to put yourself in a position to be taken seriously by the brokers (gate keepers) when they have a deal in play. Most of the brokers who come on the show say there is no chance they are sending a pocket listing to an inexperienced, unknown buyer, even if they have money. The tips and free advice shared freely on this show is worth tens of thousands of dollars and some other apt gurus sell it for that much. 

@Taryon Coffey You should join some local multifamily-specific meetups in Houston and start networking with brokers for sure.

You could also consider investing in a syndication as there are plenty of operators finding large deals even in Houston with great returns.

Originally posted by @BOB CRANEY :

Sign up for and listen to the Old Capital Podcast. If your looking for a decent sized (30+ units) MF building, the large % of them will be controlled by a MF broker who specializes in apartment sales. These MF brokers are not interested in tire kickers and can sniff one out quickly. The principle buyer on the podcast says that a very small % of the 7000 units they have bought in the last few years were directly from owners without a broker involved. You should be looking to put yourself in a position to be taken seriously by the brokers (gate keepers) when they have a deal in play. Most of the brokers who come on the show say there is no chance they are sending a pocket listing to an inexperienced, unknown buyer, even if they have money. The tips and free advice shared freely on this show is worth tens of thousands of dollars and some other apt gurus sell it for that much. 

 You’re so correct. I’m an active buyer. The only reason I get good deals is brokers know I’ll close. Quickly, easily, little fuss 

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