How did YOU get into your first commercial multifamily deal?

[Brandon Cormier]

Hello all! I am an investor friendly agent, and an investor myself in small residential multifamily in central MA. I have had my eye on 5-20 unit multifamily for a while, as I see it much more controllable and predictable way to go about a real estate deal. This year id love to partner with some people in the area and make the jump into my first commercial deal.

What challenges have you seen in the commercial space vs smaller residential multifamily?

What are people seeing for terms nowadays in different areas?

What are some pros and cons of commercial real estate?

What are the most recomended ways to go about targeting off market commercial or portfolio deals?

[Nathan Gesner]

I bought some commercial properties (5, 6, and 11 units) and they were all off-market and seller-financed.

Learn how to make the numbers work for you and the seller. Approach them directly. Present a win-win scenario. In my case, all three sellers were older and tired of dealing with tenants, but they liked the steady income. I offered them 10% down, interest rates favorable to me, amortized for 30 years, but with a balloon payment after 3-5 years. They loved it because they got some play money right away and steady income each month without having to deal with toilets and tenants. They also didn't get hit with capital gains on the entire purchase price, which enables them to keep more of their money. I got better terms than I could get with a bank. It's a win-win.

The key is to find out what they want, then find a way to give them what they want while getting what you want.