How to find a 20 Unit MF Complex

Question

I am trying to get into the MF space. Currently, I have a few SF units, but it has been a difficult experience to find units and to connect with investors looking to sell. Ideally, I am looking for MF with 20 units or less in MD, VA, WV or southern PA. Any insights or tips are greatly appreciated!

Thanks!

Ben Leybovich · Answer

To build on @Jonathan Twombly answer, the firm I think you are most likely to succeed with s Marcus & Millichap. They seem to allocate attention to smaller size commercial and entry-level commercial investors. Good luck!

Jonathan Twombly · Answer

You need to start connecting with the commercial brokers, as they are the ones who handle 20-unit deals, rather than residential brokers.  Your residential broker contacts may have contacts in the commercial space, so I would ask them for referrals, as personal introductions are always the quickest and best way to get instant credibility with brokers.

If that route does not work, then I would look on Crexi for brokers in your market, keeping in mind that if you are looking in a small market the area is probably covered by brokers in a larger nearby city. The nice thing about Crexi is that it tells you who the brokers are, so you can make a list to start contacting them.  Even better, Crexi shows the brokers who is looking at their deals and I have been contacted several times by brokers who saw me looking at their listings on Crexi.  I have formed some good relationships with brokers in this way.

Tyrone Dennis · Answer

Depends on how active you want to be in seeking out an investment.  You could look on Loopnet and Crexi.  Off market deals tend to be better deals, but working with a real estate broker as a buyer does not cost you anything other than maybe a signature on an exclusive representation agreement.  That could be your quickest way to get into one of the markets you desire.

Simone B. · Answer

@Adam Lacey Thank you for all the great tips! I am going to start reaching out to some brokers and researching a good approach on the data (and mailers) to start sending out mailers:)

Adam Lacey · Answer

@Simone B. are you asking about service for sending mailers? How much data you can pull for free from the county website depends on the county. There are tools like CoStar, Yardi, Reonomy, propstream that can help you create your own lists. Or there are places that you can buy a list. It really just depends how much $ you are willing to spend vs time you are willing to spend to do  it yourself.

"Good" brokers are the one's that get the most deals. I would find every brokerage that does multifamily in your target market and make contact with at least one person on that team. I usually start with the youngest looking, newest broker because they are still building their investor base and have more time to work with you than the well established brokers do.

Simone B. · Answer

@Adam Lacey, two questions, do you suggest using a service to do this or would I be able to do this on my own through public info or both?

and

Do you have a way of screening 'good' brokers?

I have reached out to a few, and so far no luck.

Thank you!

Simone B. · Answer

@Jonathan Twombly Thank you! Great advice, I will reach out to my residential realtor to see if I can get an introduction and will start looking on Crexi!

Adam Lacey · Answer

Hi @Simone B., brokers are going to have access to the most deals. I would start by finding a broker that specializes in the product that you're looking for. You can find them by asking around on BP or other real estate investor forums or going to Crexi or Loopnet and find a broker that has something similar to what you want and call them.

A lot of people also have success with a direct to seller campaign to find off-market deals. There are a lot of very opinionated people on how to go about this, but imo they all work if you are consistent (mailers, sms, cold-calling).

Simone B. · Answer

Thank you@Tyrone Dennis! I have an agent for SF units, but no experience in anything larger than a 4plex. What would you recommend in connecting with brokers who may have off market deals?

How to find a 20 Unit MF Complex

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