Finding multi family buildings for sale can be overwhelming. With so much information out there it is easy to get stuck in a rut of analysis paralysis. It is important to understand what is working out there in the real world, right now. To find a good deal for your investment portfolio, it is also important that you are looking at a lot of opportunities. Since property hunting takes a long time, the best way to get a good deal without spending too much time is to apply leverage. In this article, I am going to discuss the 7 best ways to find your next multi family apartment building deal.
7 Best Ways To Find Multi Family Buildings For Sale
1. Mail - Sending letters to commercial property owners is the fastest way to screen for motivated sellers. The volume of motivated sellers will depend on the volume of mailers you send. The bigger your budget, the more you can get out. Figure 50 cents per postcard or 1 dollar for letters. If you have your own website, you can use postcards because the information can be much more direct on the postcard since you will explain it in depth on your site. Once your campaing is rolling, you will get calls. Most of the calls will be owners who want too much for their property. Don't be tempted to meet with them and try to force a deal. Get good at finding motivation and screening for workable deals.
2. Brokers - Even though this is the first thing that people think about when they consider buying property, it is still under-rated. Brokers make the real estate world go round. They should be an expert at marketing and therefore be better than anyone else at finding deals. That is what a lot of agents do full-time. In addition, they will help you with due diligence, teach you about your market, and refer you to top-notch attornerys, property managers, and other real estate service providers. Look for eneergy, knowledge, and loyalty. Some have great sales pitches but are really focused on their commisison. A good broker is one you believe will treat you as their partner. You depend on them to find you a deal, and they depend on you to close it. It's a great win-win.
3. Advertise - Putting ads in local newspapers is one way to get leads. Unfortunately, newspaper readership is way down because of the internet. On the flip side, most investors do look at their local paper still. Depending on the cost, it can be a great way to bring more sellers into your pipeline. If you have a website, you can also use Google AdWords to advertise your service.
4. Lenders - If you are buying distressed properties, now is the time to go into your local community banks, introduce yourself, and show them how you are qualified to buy the next deal that comes across their desk. They are in the business of lending, not managing properties. If you can brand yourself in their mind as the guy who is ready, willing, and able to close the pre-foreclosure property which they do not want to take back into OREO, they will call you.
5. Websites - Websites such as Loopnet.com, showcase.com, and CoStar.com have tons of listings for multi family buildings for sale. You may not find a needle in the haystack your first time, but if you are persistent, you will find motivated sellers on there. It is also a great way to get to know your market better and build relationships with industry experts.
6. Canvas - This is a great way to get to know your market, find deals, and save money on advertising all at once. Many commercial brokers start out this way: combing the streets of their market to find buildings with "For Rent" signs on the lawn, "For Sale By Owner" signs, or any indication that a seller might be looking to sell. You will bump into owners, so have your business card ready and be prepared to talk about your ability to close since they are most interested in talking to buyers and brokers who are serious, not curious.
7. Court - This is the most underground strategy out there. Go to your county courthouse and find out what days and times the evictions courts are being held. Attend the court session and watch as the landlords get frustrated as the tenants tell their side of the story to the judge. They get very motivated and many times you will see a first-time evictor in court who you can see from their expression just wants out of the business. Approach them afterward with a business card and let them know how you can help.
BONUS - I like to under-promise and over-deliver so I have included an 8th way to find multi family buildings for sale...
8. ME - I run a commercial real estate referral service. I am well-connected with other commercial brokers, dealers, intermediaries, attorneys, and consultants. When they have a deal that needs more exposure, they contact me. If you would like priority access to these off-market commercial opportunities, visit my site: www.NickGraff.com.