Lake Dallas, TX · Member since 2017 · 4 posts · 0 votes
Hi. When multifamily real estate is listed on sites like realtor and loopnet for 200 plus days, does that generally mean its a bad deal? I'm looking to buy a 12 unit apartment complex, but it's been for sale for nearly a year. Plus, I want to be a long distance investor, but someone in my family is in the real estate business near the place I want to purchase to help out. Can I ask for things like an appraisal report and inspection before I even fly over to see it myself? (I live several states over). Thanks :) - A
Let's put it this way... LoopNet is not usually the first place a broker will put a commercial deal.
On the other hand, if it's been on the market for 200 days, the broker will likely be happy to share financial information with you. Start with a financial analysis, and determine based on proven cash flow what ballpark you may be willing to play in on price. You can do that before doing inspections or walk-throughs.
Thank you for your reply, Jason Ross. Where would you recommend I go looking for similar commercial deals (12 unit apt complexes)? I think I will contact the broker and ask for the last 3 years of financial statements by email. I have a feeling it needs a lot of work, since it was built in 1964. It looks old. There's the possibility that it's Section housing, since it's in a poor area, and all the units are 1 bed 1 bath.
Call the broker. The deal may be gone already, but at least you are able to talk with him/her and discuss your investing criteria. I would look on loopnet to use it as a tool to call the multi-family brokers in your area and let them know your alive and ready to buy. Commercial is different than 1-4 family. Build that relationship with the local brokers
This property on LoopNet could be a way to do it. Doing your own analysis on it can help you better articulate what you want, and what you don't want. Also, Todd is right that commercial is different... when you talk to brokers, be certain you're able to communicate that you are a serious buyer, with resources available to make a purchase.
Aimee Smith I think it means that it's an overpriced deal. The free market has spoken and said such. That said, it doesn't mean that the deal hasn't sold. It doesn't mean that there isn't a *right* price. It doesn't mean it won't mean your investment criteria. However, at 200 days I'm sure the broker has the answers to all of your questions. He/She would have had to have gone through a good amount of Q&As before. I've never done an inspection before a flight. Real estate is local and sometimes it takes a flight to see right vs. wrong side of the tracks. An inspection won't tell you that.