Does anyone know of a good (and less expensive) alternative to loopnet to research multifamily property deals?

Question

Good Afternoon Fellow BP Members,

I am currently selling my single family rental (closing in May) and am seeking a new property to invest in.  After hearing quite a few podcast episodes I've been very interested in multi family properties, though there are very few listed on the mls in Orlando.

Though I will shell out the 200/month for loopnet if I have to, I'd much rather prefer not to if I could research multi families in an alternative way.  Also, if anyone has any advice about investing in multi families in the Orlando/central Florida area I'd greatly appreciate it.

Thanks!

-Opal

James Rey · Answer

Most deals are found through relationships with brokers and others in your target area.  Loopnet is a bit of a last resort for brokers if they cannot sell their listings within their or their offices network.  For me personally, it is not worth the monthly fee at this time, though I believe it used a better value some time ago.  Now that Costar has acquired them, their pricing or product may change.

Daniel Chang · Answer

Account Closed is incorrect here), nor do you get immediately notified when a listing hits the market.

I follow Loopnet daily.  There are definitely good listings.  Unfortunately because it's on the "marketplace" good listings are gone within a few days.  Hence there's competition.  I will say you are unlikely to find a below market deal on Loopnet because of this fact.  However anyone that looks at free loopnet no doubt see the leftover properties that doesn't get picked up, and hence they feel it's the "dumping ground".

Costar essentially feeds off Loopnet.  Costar is essential when it comes to market research and data mining.  As for listings however, it uncommonly has listings that are not found on Loopnet.

All other listing sites are much less common.  And hence, you may find a listing, and only to find out escrow closed 3 months ago.  Brokers sometimes gets lazy or forgetful and forget to take these listings down.  Unfortunately, there is no MLS equivalent in the commercial world.

Through my brokerage, I have free access to Costar in my region.  However even then, I still feel the need to pay for Loopnet because it's considered the goto marketplace for commercial (discounted).

For you, I recommend you find a broker that represents buyers and just get your resources through him.

Linda Weygant · Answer

I also had a bit of sticker shock with Loopnet.  I guess they're trying to keep the riff raff out?  (That'd be me...)

Jake Harris · Answer

Opal,

Loopnet does offer a free subscription but you won't be able to view premium listings.

Also check out Hendricks-Berkadia I actually just heard about them on the bigger pockets podcast with Grant Cardone. I am not very familiar with their site but seems to have some possible sources.

Costar is another site

It is worth reaching out to a  multi-family broker(s) in the area you are looking at investing in. Plus they have access to most all listings and what is available in the area. Commercial brokers often times have several pocket listings and most good commercial deals I have found never hit the market.

Happy Hunting,

Jake

Josh Eitingon · Answer

I agree with @Martin Z., while loopnet often has a lot of dead deals that aren't going anywhere listed, it also provides a lot of great historical deal info.  Additionally, the broker contacts available through loopnet are endless.

I see it as a necessary business expense if you are going to get involved in larger multifamily deals.

Martin Z. · Answer

If an investor is looking to spend hundres of thousand, if not millions on a property, i wouldn't go cheap on the listing service. setup relations with brokers, but get costar , loopnet as well.

Hugh C. · Answer

I agree that Loopnet is a listing of last resort. If the listing broker cannot get any of his buyers to bid on the property, the broker puts it on Loopnet to cast a bigger net... to catch a less critical buyer.

Account Closed · Answer

I have been actively monitoring Loopnet and Redfin in my target areas, but as has been stated already, alot of what is view-able there isn't at the most attractive prices.  But what you can learn through a combination of Loopnet, Redfin, and online property records is enough information to help you sort of analyze hypothetical properties.  Kind of like Algebra, you are solving for "X" which may be the bits of information you can't fine online.

Armed with this information, now you can approach a broker and set up a relationship and have a better idea of what they are bringing you and how attractive it might be.

Also on Loopnet, when you click on the property, you can then sometimes view the listing broker's other listings, which don't appear in the main search.  And since you now know the broker's name AND the name of their firm, it's a few quick easy clicks to get to their website and see what else they have listed there.

Austin Hughes · Answer

Account Closed

I think it is similar to the MLS in that the best deals are usually snatched up before they make it there.

HOWEVER, you can check to see what's been listed for a long, long time, and see WHY. Could be a problem property that you could get at a discount. This happened with me on a property that I am currently managing and have the option to purchase. The option is at a great discount and it will cash flow very well. It was on LoopNet. You never know.

Account Closed · Answer

Thanks all for the great info, I kind of figured that it was a sort of dumping ground for listings.  
I know I'd have to team up with a commercial broker eventually, but I wanted to do some independent research prior to doing so I can have a bit more familiarity with the local inventory beforehand.

Does anyone know of a good (and less expensive) alternative to loopnet to research multifamily property deals?

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