If you are investing in this market, you are probably scratching your head looking for multi family buildings for sale. There are plenty of deals but lots of misinformation. The internet has created a frenzy of promotional offers and get rich quick ideas and those looking to earn a quick buck are fast to solicit properties which they have no control over.
In this article, I am going to help you find REAL deals so that you can save time and work efficiently in your business.
7 Ways To Find Great Deals on Multi Family Buildings For Sale
- CCIM.com – This is the most under-utilized and valuable service that I am aware of. It is free and it contains real nuggets of gold. Of course, you can go to http://www.ccim.com and find all kinds of resources about investing in commercial real estate, but the gold is found at http://findaprofessional.ccim.com/search. At that little-known link, you now have access to some of the best, most experienced commercial brokers in the market you are interested in and the property type you are looking for. Treat this information with respect because if you can nourish the relationships that you have the ability to develop, this may be the only resource you need to find great deals on multi family buildings for sale.
- Evictions Court – If you own any rental property and have been through an eviction, you have seen a concentrated group of frustrated landlords. They are not ALWAYS looking to sell, but a good chunk of them are. Just go down to your county courthouse and find the days and times of evictions courts. Get in the habit of going to all of them. Just watch your first couple times and see the frustration. Introduce yourself and let them know you are interested in buying multi family buildings.
- Canvassing – This is usually the best way to start finding buildings in your area. Canvassing is driving up and down the streets and neighborhoods where the multi family buildings in your area exist. You are not necessarily looking for buildings for sale. The main point is to get to know your market, know the buildings, and actually find the owner out at the property. You can uncover some golden nuggets if you are dressed well but not overkill, have a good conversation, and are good with followup. This is also a great way to build your database.
- LoopNet – Everyone goes to loopnet first to find deals. This is a great place to get started because you can learn how to analyze deals. Once you are past that stage, the main reason I would use loopnet is to source multi family brokers. If you look for multi family for sale in your market, pull out all of the listings and call all of them. Don’t do it just to get a deal, do it to build relationships. Keep in mind that commercial brokers on loopnet are probably getting a lot of tire-kicker buyers. If you are qualified, then show them that.
- Direct Mail – Sending letters to building owners is probably the fastest way to weed through all of the potential riff-raff and get straight to a good deal. This really depends on your budget. If you have at least a few hundred bucks a month, you can go to the county courthouse, record all of the 5 unit and up multi family buildings in your market and send a series of letters to them. You will get calls and most of them will be owners who are trying to get more than their property is worth. Expect to get 1 good deal from every 100 owners you talk to.
- Ads – Of course, putting an ad in the local newspaper is one way to get leads. The bad news is that newspaper readership is way down because of the internet. The good news is that most investors, whether buying or selling, do look at their local paper still. Although, it is not the best way to spend your money, it is good if you have a sizable budget. Also, you can advertise using Adwords on Google if you know of some good keywords that owners may be typing in.
- Banks – Forming key relationships with asset managers in your local banks can be a great source of great deals. If you can show that you are serious and qualified, you can work your way into getting direct access to OREO and pre-foreclosure assets. If you are buying distressed properties or distressed commercial notes, this is a must.