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Updated 3 months ago, 09/25/2024
How To Find A Deal In This Market
We just signed a 63 unit two weeks ago and have signed on a 67 unit this past Friday. We are self funding these deals, and they were brought to us by a broker.
How do you find a deal in this part of the market cycle, when deal volume is down significantly, and there is a ton of pessimism.
- 1. Treat brokers like gold. In multifamily, brokers are the gatekeepers. This broker has bought and sold several deals for us. Do not try to sell a deal by yourself. Find a top broker to represent you and market your deal to the investing world.
- 2. Know what you’re talking about. When you do find a broker, make sure you sound credible, can tell them what your buy box is, and are targeting deals that you can close. Don’t waster their time.
- 3. Find a motivated seller. If there is no motivation, then chances are there is no deal to be made.
- 4. Create value for the seller, Our seller, while he still sold for a good price, needed the funds for another project, and needed certainty of close. We knew how to create value for the seller.
- 5. Don’t be afraid to put in lower, fair offers. Ask the broker if they think you should put it in and if they say yes, then let it rip. But, have a legitimate reason for your price. Our final price for the 67 unit was 17% less than offer.
- 6. Brokers are hungry for your business, and are looking to add to their buyer lists.
- You can always buy real estate in any part of the market cycle, but you can’t always sell. A lot of syndication groups are finding this out the hard way.
- Seller financing is coming back in vogue. If the deal doesn’t make sense to finance traditionally, see if seller financing works.
- Now is the time to get in the market. We are reverting back to a buyer’s market, and the next 2 years will offer ample opportunities.
How many people wished they had bought in 2009-2013? What about 2018-2020? If you’re in in for the long term, please consider jumping in now to build your team and your base of investors.
Happy investing!
Buy Right Manage Right Finance Right®
Gino