I just got started in real estate investing. This year I bought 3 SFR in RTP area. I am looking to scale up with multifamily investing. Looking for help.
Contrarian Investor · Greensboro, NC · Member since 2016 · 219 posts · 174 votes
5y
Subbu, Hope you and your family had a Merry Christmas! Are you looking for residential Multifamily (2-4 units) or 5-100 units or 100+ unit Multifamily properties? Let me know which you're interested in and I can better help. Thank you!
I am educating about the MF investing. But, I need help with finding deals - hardly find anything on MLS, finding right team - legal, financing, property management etc., and finding partners - I do not have experience with MF as Fannie Mae requires.
Subbu, Hope you and your family had a Merry Christmas! Are you looking for residential Multifamily (2-4 units) or 5-100 units or 100+ unit Multifamily properties? Let me know which you're interested in and I can better help. Thank you!
Contrarian Investor · Greensboro, NC · Member since 2016 · 219 posts · 174 votes
5y
Subbu, The quantity of commercial multifamily listed on the MLS will be very small. In North Carolina roughly 60% of commercial multifamily is traded off market via relationships. And the properties that are marketed you would need to be on the brokers list to receive the offering as properties become marketed. I recommend a phone call with Mark Kenney and @Account Closed. He could help guide you because buying 20 units takes about the same effort or more than buying 200 units. And with 20 units you typically can’t afford on site staff so it’s actually more challenging to operate anything between 20-100 units. Once over a hundred you can afford on site staff which makes it much easier and cost effective. I’ve tagged Brent in this post, but if you would like me to introduce you to Mark and see if/how we could help let me know. Thank you!
Rental Property Investor · Los Angeles, CA · Member since 2016 · 41 posts · 28 votes
5y
@Subbu Munagala Have you ever thought of partnering up with others who do larger deals? Deal flow will be hard at first, but if you work with some more experienced people it will help you get ingratiated quicker to the brokers who are in that space.
@Subbu Munagala Have you ever thought of partnering up with others who do larger deals? Deal flow will be hard at first, but if you work with some more experienced people it will help you get ingratiated quicker to the brokers who are in that space.
Investor · Apex, NC · Member since 2017 · 135 posts · 97 votes
5y
As many have mentioned, deal flow is usually the stop gap for most investors.
I would start building relationships with brokers, but you have to think why should they bring you a deal vs someone else the already know in their network?
Are you willing to buy very distressed? Smaller markets? I would try to be very clear on your deal criteria and be sure to be transparent with the brokers. MF is very competitive right now and it may take 12 months+ to find a deal.
Make sure to have your capital, lenders and UW skills ready to go so when you get a deal you can respond promptly about how it fits your criteria or not.
A lot of properties around the Triangle are trading at pretty crazy figures so just be prepared to be aggressive in your UW if you want to be competitive.
Subbu, The quantity of commercial multifamily listed on the MLS will be very small. In North Carolina roughly 60% of commercial multifamily is traded off market via relationships. And the properties that are marketed you would need to be on the brokers list to receive the offering as properties become marketed. I recommend a phone call with Mark Kenney and @Account Closed. He could help guide you because buying 20 units takes about the same effort or more than buying 200 units. And with 20 units you typically can’t afford on site staff so it’s actually more challenging to operate anything between 20-100 units. Once over a hundred you can afford on site staff which makes it much easier and cost effective. I’ve tagged Brent in this post, but if you would like me to introduce you to Mark and see if/how we could help let me know. Thank you!
Thanks Jason. I will talk to Mark and Brent. While I understand the challenges with small properties, I will not qualify for nonrecourse loans on bigger properties because of my lack of experience and net worth limitations. If there are ways I can get around these limitations - I heard about key principals, I would like to know. I am unable to find much information on the costs of getting a KP.
As many have mentioned, deal flow is usually the stop gap for most investors.
I would start building relationships with brokers, but you have to think why should they bring you a deal vs someone else the already know in their network?
Are you willing to buy very distressed? Smaller markets? I would try to be very clear on your deal criteria and be sure to be transparent with the brokers. MF is very competitive right now and it may take 12 months+ to find a deal.
Make sure to have your capital, lenders and UW skills ready to go so when you get a deal you can respond promptly about how it fits your criteria or not.
A lot of properties around the Triangle are trading at pretty crazy figures so just be prepared to be aggressive in your UW if you want to be competitive.
Good luck!
Thanks.
I am impressed by your portfolio. I would like to talk to you. Let me know your availability in the next couple of weeks.
Real Estate Broker · Raleigh, NC · Member since 2015 · 24 posts · 12 votes
5y
@Subbu Munagala
We are a full service Real Estate firm providing brokerage and property management. As an investor myself with 22 units and a small multifamily property, I work exclusively with our firm's investor clients to help source SFR and multi-family properties. We provide the property management for them as well. Happy to set up a day this coming week to chat.
Investor · Colorado Springs, CO · Member since 2020 · 9 posts · 4 votes
5y
@Subbu Munagala I suggest you read MULTI FAMILY MILLIONS by David Lindahl... and I think you’ll get a good perspective, and might change your mind about starting small :)