Finding Multi Family deals outside of MLS?

[Krystyna Fennelly]

Any suggestions on finding multifamily properties outside the MLS? I am a Broker and do find good deals on MLS but I know there is a huge market outside of it as well. I am in SE Houston/Galveston Bay Area and looking for 4-8 units to start. Thanks!

[Chris Winterhalter]

@Krystyna Fennelly

I take it your are a broker that specializes in single family properties that wants to invest in 4-8 units? You need to connect with the brokers that specialize in these smaller multi-family units. Search Loopnet to see what brokers currently have listings on these size properties. Reach out to each of these brokers, have lunch, and regularly connect. Search all the top commercial brokerage firms to see who is listing these type of properties. Hendricks Berkadia is a multi-family only brokerage company and they have an office in Houston. Check CBRE, Cassidy Turley, Marcus & Millichap, Sperry Van Ness etc etc. These are small properties so you might only find few people that deal in this space at the larger firms. I would also search Craigslist to see if anything pops up (it may not). Get a routine set up so you are continually checking on deals on a daily/weekly basis. I would also keep checking the MLS.

Setting up a direct mail campaign might work well for these size properties as well. When we starting investing in multi-families we did several successful campaigns for the 5-20 unit complexes.

Good luck!