How To Find A Deal In This Market

[Gino Barbaro]

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. 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. 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. 3. Find a motivated seller. If there is no motivation, then chances are there is no deal to be made.
4. 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. 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. 6. Brokers are hungry for your business, and are looking to add to their buyer lists.
7. 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.
8. Seller financing is coming back in vogue. If the deal doesn’t make sense to finance traditionally, see if seller financing works.
9. 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

[Gino Barbaro]

@Phil Avery
when you've made as many mistakes as I have, you're bound to start winning!