How to find off market Multifamily and commercial properties

Theres a lot of competition for multifamily properties these days and CAP rates are highly compressed. If you are relying solely on brokers the chances of getting a good deal or even being able to compete are slim to none especially if you are just getting started.

So what do you do? You need to go directly to the owner just like the brokers are doing to get the best deals. Before you do you need to make sure you know what your doing and know how to speak the language especially when dealing directly with the sellers. They will sniff you out quick if you are not experienced. Make sure to educate yourself on the space, the market and the asset before you contact the owners so you can sound intelligent and ask good questions. The better the questions the more you sound like you know what your doing.

These are some of the the best ways to find off market commercial and multifamily properties is to compile lists from city and county websites if available or through a paid service like List source, Reonomy and CoStar or you can use free resources like Loopnet, CREXI, Ten-X commercial, Craigslist, tax database, general networking, brokers, property managers, title companies, environmental consultants, building inspection companies, appraisers, landscapers and other companies that service commercial and multifamily properties and driving for dollars. The key is consistent action and how you approach the owners and then the follow up. You need to be talking to hundreds of sellers these days to develop good deal flow.

You can send letters and email but cold calling is by far the most effective method but you really need to know what you’re doing, how to open the conversation, what questions to ask and more importantly when to listen and not talk. Most importantly you need to convey confidence and assurance you are a player and not just wasting their time. Remember you are building relationships with the owners.

Follow up is crucial and where 90% of investors and sales people fall short. You have to consistently follow up in a meaningful way and you will get deals.

Direct mail can work but cold calling is much more effective for commercial and multifamily. That’s what the brokers do. That being said the ultimate strategy is direct mail, cold calling and targeted social media all at the same time. You need to make sure you have a professional website and social media presence with your company info and section about you and your team. They will look you up.

Direct mail campaigns need to be a mix of postcards and professional letters on business letter head. You can send the direct mail first followed by a phone call and then targeted social media campaigns.

Once again as I say about every aspect of the business you need to be consistent, have a good system to maintain contact and the relationship with the owner and you need to talk to many many sellers to get a good deal.