BiggerPockets Real Estate Podcast

817: 2 “Slam Dunk” Small Multifamily Deals in 2023 (and Where to Find Them) w/Dan Nelson and Jodi Gauthier

Sep 12, 2023

Dan Nelson, an elite agent from the Midwest, shares how his client made massive equity on a heavily underpriced private listing in Chicago. Jodi Gauthier, a Houston-based agent, secured a lucrative seller-financed deal for her client. They discuss metrics to watch before investing, finding cash flow in challenging markets, and the importance of long-term thinking. They also explore realtors' hesitancy towards owner financing. A humorous conversation about cheese ends the episode.

48:14

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Episode guests

Dan Nelson

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Quick takeaways

Working with agents who have personal investment experience is crucial for accurately assessing property values and negotiating successful deals.

The markets in Chicago and Houston offer unique opportunities for real estate investors, with Chicago being attractive for rental properties and Houston offering long-term benefits like favorable tax environments and strong rental demand.

Deep dives

Negotiating as a Real Estate Investor

Negotiation is an important aspect of real estate investing and can make a significant difference in the success of a deal. Understanding the value of a property and evaluating it from an investor's perspective is crucial. Agents who have not invested themselves may struggle to accurately assess property values. It's important for investors to work with agents who have personal investment experience to ensure a comprehensive evaluation. The negotiation process requires perseverance and skill, which is why it's advantageous to work with agents who understand the investor's perspective.

Introduction

2min

The Value of Real Estate Agents in Building a Successful Portfolio

6min

Chicago: Long-Term Benefits and Population Shifts

14min

Finding Cash Flow in the Chicago Market and the Importance of Long-Term Thinking

6min

Navigating Setbacks and Achieving Success

7min

Realtors' Hesitancy Towards Owner Financing

16min

Wrapping Up the Episode and a Conversation about Cheese

2min

Small multifamily properties are one of the EASIEST ways to get into real estate investing. But, your market may be a little too pricey or lack the supply for you to invest in these “slam dunk” deals. So, where do you go? We’ve got two elite agents from the South and Midwest that can help YOU get your next killer deal in metro areas that are seeing STRONG demand, renter growth, and rising rents.

To tell us about Chicago, the “we don’t actually love deep dish” city, is Dan Nelson. Dan was recently able to access a “private listing” that was severely underpriced. He brought this deal to a rookie client of his, who ended up making a MASSIVE amount of equity on closing. We’ll also chat with Jodi Gauthier, a Houston-based agent who secured a very lucrative seller-financed deal for her client, who couldn’t get a mortgage anywhere else.

You might think these deals are too good to be true, ESPECIALLY in 2023’s housing market. But, we’re here to prove that as long as you’re in the right market, running the right numbers, with the right agent, you too can lock down these “slam dunk” small multifamily deals.

In This Episode We Cover:

Two housing markets with “slam dunk” small multifamily opportunities

Metrics to watch BEFORE you invest in a market and how to know your home will appreciate

What to do when you CAN’T find cash flow in your area (and whether or not cash flow is worth it)

Seller financing and how to buy properties when you can’t get approved for a loan

Questions to ask your agent to see whether or not they TRULY know what they’re doing

And So Much More!

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