10 Best Ways to Find Great Multifamily Properties
When you really want the best offers on a multi-family property, you need to increase your chances by digging deep and discovering more sales. Who is more likely to get a cheap apartment building deal, an investor looking through loopnet.com and calling it a day, or a person who has a multi-pronged marketing approach that can lead to ten different ways?
Here are ten ways you may or may not have considered:
- Talk
Real estate is, first and foremost, a commercial partnership. The more people you think you’re searching for assets, the higher the odds are of receiving referrals. Next, be comfortable for your “elevator speech” and then share it with anyone who listens. Let people know that you’re continually searching for multi-family properties, and occasionally the property can come to you. There are many owners out there who want to sell, but they haven’t listed their property yet.
- Online Research
Go to the search engine and enter the type of real estate you’re looking for, along with the city you want to invest in. You never know what you’re going to find. Search loopnet.com, costar.com, Realtor.com, Trulia, Zillow, FSBO.com, and even eBay daily. Go to the websites of commercial brokers to search their lists.
- Driving for Dollars
Drive through areas that you’d like to be in and check for “For Rent” and “For Sale by Seller” signs. Make sure to check abandoned properties and properties that need “a little attention” or properties that don’t suit other similar properties in the city. Attach the addresses and when you get there, cross-reference the address in the official county database.
- Direct Mail
Conduct a direct mail campaign for a targeted list of owners of multi-family properties. A quick and not so free way to find apartment building owners is to buy a list of them from a listing company. There are companies such as ListSource.com, REISource.com, and others that can provide lists with any specific criteria you provide. Successful direct mail marketing campaigns will generate a response rate of 2 –5 percent from anywhere. As with any marketing campaign, you need to analyze what works for you and what doesn’t work for you.
- Find old “For Rent” ads
Call if they’re a couple of weeks old. Landlords who have trouble finding renters are always upset and ready to sell, particularly if they have a high vacancy rate.
- Talk to bankers
You might get a foreclosed investment property cheaper if you buy it before they list it with a real estate agent.
- Residential real estate agents
Owners who want to sell an apartment don’t know any commercial brokers, so they can contact a friend or relative who sells real estate. Agents can take the list and put it in the MLS.
- Eviction and Notice of Default notices
When the local papers print eviction notices, or if you may collect documents from the courts, it can be helpful. An owner that has just been through the process of evicting tenants is a possible seller. Also, get hold of the Notice of Default listings for investment properties and attack the list.
- Old FSBO ads
If you browse the old listings on the online “For Sale by Owners” (FSBO) sites or call two-month-old FSBO ads and they haven’t sold, they may be ready to deal with them. Owners frequently give up their ambitions, but they would also want to sell. Help them out!
- Put an ad online or in the local paper
Craigslist.com or Facebook ads may generate a significant response. Place ads that say, “Looking for investment properties to buy.” It might be enough to make a few calls.