Rental Property Investor · Los Angeles, CA · Member since 2018 · 26 posts · 1 vote
Hey, so I’m looking to start wholesaling Multi Family would it be more difficult to do vs residential can someone explain the process ive done alot of research but i would like feedback from people who are actually doing it.
We have wholesaled about a dozen multifamily properties within the last year. The tricky part is finding sellers who are motivated to sell. Most are not in a distressed situation and their price expectations are close to retail. If you can get turn key stuff out to your buyers list at 85% of retail value including your assignment fee for a cash deal that seems to work in our Market.
I've highlighted quite a bit in this book and it's encouraging to know that this too, is a way to successfully build passive income and grow a rental portfolio, something that I will endeavor to accomplish.
I'm sure that you will hear from some people here on BP who are successfully buying/investing in multifamily real estate.
Investor / Syndicator · Austin, TX · Member since 2015 · 366 posts · 220 votes
7y
I'd love to read your book. I've had some experience with smaller MF deals and have come to the conclusion that they can be good, but there are also many perils and risks that require much caution. This is why I wrote this: https://www.biggerpockets.com/blogs/10553/70750-th...
I've since worked very hard to be involved in larger projects. Having said that, I'm do realize there can be some good small deals, but the risk, I believe can be quite high due to unfavorable insurance and financing options and the cost of syndication, IF you're doing a syndication deal.
Investor · Houston, TX · Member since 2012 · 102 posts · 13 votes
7y
@Parris Edwards Wholesaling multi family properties is the same process as wholesaling sfr. You need to get leads, get comps, make offers, get properties under contract, then aaaIgn to end buyer. There’s tons of competition, and getting leads is where you should place your focus.
Rental Property Investor · Tampa, FL · Member since 2015 · 1k+ posts · 969 votes
7y
The overall process is the same, but underwriting multifamily is much more intensive than underwriting SFRs. I recommend focusing on your underwriting skills first (i.e., practicing on on-market deals currently listed).
We have wholesaled about a dozen multifamily properties within the last year. The tricky part is finding sellers who are motivated to sell. Most are not in a distressed situation and their price expectations are close to retail. If you can get turn key stuff out to your buyers list at 85% of retail value including your assignment fee for a cash deal that seems to work in our Market.
We have wholesaled about a dozen multifamily properties within the last year. The tricky part is finding sellers who are motivated to sell. Most are not in a distressed situation and their price expectations are close to retail. If you can get turn key stuff out to your buyers list at 85% of retail value including your assignment fee for a cash deal that seems to work in our Market.
You know it is very funny.
We get all sorts of leads. everything, and Imean everything, but the ONLY multi's we get are absolute crap.
Horrible parts of town, and in horrendous condition. We get like 7 to 10 of these a week. We always have to ignore these. I don;t even bother wholesaling them. There is just no deal to be made.
Here is where DMM beats SEO.
No one with a decent multi will let it go as it is an income property. I am starting to get convinced that the only way I will be able to get a decent multi, is if I do DMM.
But I REFUSE to pay for marketing. I am in a real dilemma it seems. I want to start doing buy and holds now...
Realtor · Fall River, MA · Member since 2015 · 82 posts · 16 votes
6y
Hello @Parris Edwards. I agree with @Spencer regarding the process.
Your Success is directly tied to how many calls you make and how many people you can contact in general.
My husband and I started Wholesaler Mastermind and Accountability Call, so we could find more off-market deals by training new wholesalers how to build lists, find phone numbers, create solid mailing, emailing, texting and cold calling campaigns that will boost the effectiveness and likelihood of closing more deals.
We use Texting, RVM, and cold call 2-3 times a week with everyone on zoom. It is really the same process. Just once you find a multifamily to wholesale, the numbers are run based on NOI and Cap Rates, not based on CMA.
Investor · Ravensdale, WA · Member since 2016 · 21 posts · 10 votes
6y
This is a great conversation. I am also interested in wholesaling some multifamily properties. I am very curious to understand how to handle the earnest money. In my area, sellers typically expect a significant (>$10,000) EMD once the purchase and sale agreement is signed. How does the wholesaler protect this? Do you normally collect a deposit from the buyer that is greater than the earnest money deposit? Also, people seem to rarely buy multifamily in cash around here. Financing takes time so deals usually take at least 60 days to close. Does anyone have experience with wholesaling in these conditions? Does that complicate the wholesaling process? Thanks!