Breaking into Large Multifamily

[Nathan Zierer]

We are looking to break out of the small multifamily market (2-4) and into the large/commercial multifamily world. We are coming off of a great BRRRR project and will have a large sum of money to be looking at redeploying. If anyone knows of a deal or has a contact for a commercial broker that would be amazing. We are looking at property sizes between 5-25 units ideally, as we are wanting to make this deal owned by us and no outside investors. Once we have our feet under us and have learned more of the ropes then we would be looking to bring on investors. We have been doing the casual looking on sites like LoopNet and Crexi, but from what I understand those are the places where deals are put when the brokers go-to people already turned down the deal. Once in great while, we have seen good ones, but they do seem rarities. We would also like to stick with St. Louis at least for our first one as we have a great team set up there now.

Any help would be greatly appreciated and we look forward to talking with you all. 

[James Wenzel]

You really need to get plugged in with a mentor group that teaches large MF investing. Even if you are buying the deal on your own, the brokers want to sell to someone that they know or someone that was referred to them (unless you are going to overpay). Also, large commercial lenders mandate that someone on the team has a solid track record when it comes to large CRE deals before they lend. You might also want to passively invest in a few large CRE deals. Then you can see the reports, analytics, best practices and what they are doing to drive up the NOI. I actually passively invested in 20+ large CRE syndications before I started buying on my own. Actually just started 2 yrs ago and picked up 3 large complexes (139unit, 260 unit, and 170 unit). I did pay a lot of money on a course with a MF investment group and they helped me fill the educational gaps. Also, check out some MF investment conferences. Think they have a big one in Charlotte and Phoenix in June and Denver in July. I will PM you if you want to talk about what course I took.