Multifamily Legacy Podcast 003: The Secret to Finding Apartment Deals
Welcome to the multifamily apartments investing podcast, I am your host Corey Peterson. I have a great show lined up for episode 3. It’s my goal for you to get excited about multifamily investing because the right deal can set you up for life. Last episode, I talked about the secret language of apartments. We discussed things like cap rates and buying for cash flow.
In this episode, I’m talking about the secret to finding great apartment deals. This is the second part of my six pillars to apartment investing series. One method for finding properties is sending direct mail to apartment owners. This is effective for smaller units. Larger units of 100 plus units usually only sell through brokers. A plus of buying smaller units is not having a broker involved. There are also more options for creative finance when dealing directly with the owner.
Broker relations are another way to find deals. This means establishing the markets that you like and getting to know the brokers that work in that area. They will send you deals in that market creating a nice pipeline. The best technique is to use both methods and understand how to properly analyze the deals that you find. We will be talking about analyzing deals in the next episode or the third part of the six pillar series. Today, we focus on the process of finding deals and having the right deal flow.
Topics on Today’s Episode:- The direct mail route or sending letters straight to the owners of properties
- This route is very efficient for finding motivated sellers
- Having established relationships with broker in your market is another way to find deals
- Use ListSource to find properties in the MSA or area you are interested in
- Look for properties built between the 70s and 90s to find B and C properties
- Choose multifamily residential apartments for the type of property
- Send something in a colored envelope that looks like a handwritten card
- Use strong copy and a phone number for a call to action
- Set up a phone number for each market to appear local and track and record
- Import the calls to Podio for project management
- Getting information from an owner who calls such as a current rent roll
- Getting 3 months trailing P&L, but a 12 month is preferred
- How 1 person in 25 calls is usually motivated
- Determine your market to target brokers in your area
- Use LoopNet to find the brokers in my market
- Choose at least 50 units for larger units
- Call the broker and be confident
- You can make practice broker calls in a market that is not your target market
- You are a looking for a value add opportunity with a big upside, or a momentum play
- Build rapport with the broker. What do you do for fun? Put it in your notes.
- Forward thinking upgrades like updated plugins with USB charger ports
- To build relationships you need to know about their family and likes
Links and Resources Mentioned:
Don’t forget to download my Free Workshop Quickstart Video Series, and if you like what you have heard please leave a review on iTunes. On the next episode, I am going to give a quick shout out to some of my reviewers.