Where to the apartment deals??

Question

I am investing in apartments in the Cincinnati, OH area.  Looking to buy 50 or more unit apartment complexes.

What do you find to be the most effective way to locate these off market deals?  Mls and Loopnet seem to to be saturated with bad deals.

Would love feedback from anyone who actively invests in or owns some large apartment complexes.

Thanks alot.

Joe Fairless · Answer

@charles

@Charles Smith I actually have apts in Cincinnati. Your best bet is to start creating relationships with brokers and apt owners directly. Focus on relationships not transactions and you'll do very well.

Roy N. · Answer

Seldom do the good deals ever make it to a listing.

Find a reputable commercial broker; demonstrate to her/him that you are a serious buyer {i.e. you have the means to purchase a property of this size}; provide the criteria of what you seek: stabilized, turn-around, class A/B/C/D, etc.

Josh Eitingon · Answer

@Charles Smith  Hey, I also own in Cincinnati.  In addition to a lot of the great suggestions above, I do think there is opportunity for multifamily direct mail campaigns.  You don't see them as often in this space there are definitely deals to be had.  I know hamilton county has a pretty decent website for databasing and prospectnow.com is a good resource I've used. I'm not affiliated with prospectnow (don't worry.)

Steve Wilcox · Answer

For larger deals there is no 'MLS' like in residential that all properties go through or are typically listed on. The stuff that makes its way to loopnet is the junk that brokers couldn't sell when they showed it to all their serious clients.

Call the local COMMERIAL brokerages, and set up some meetings with brokers to go over your criteria, what exactly you are looking for, how you plan to close, ect. Be prepared to show you are the real deal, if you are looking at 50+ units you should have some cash behind you, and the ability to close. Many brokers are afraid of getting involved with newer investors because they are worried you will not be able to close on the deal, which will waste time and make them look bad with the owner who gave them the listing.

Derek Carroll · Answer

@Charles Smith i agree with the above.  Any time I have a property I'm selling it first gets offered to my best clients before it gets listed or blasted out anywhere.

You don't need to actually do business with a broker to be considered a "best client".  Just make it known to them that you are willing and able to actually close and you'll start seeing deals.

Also, you might want to start some of your own marketing.  Try direct mail to apartment owners.

Could also look at auction and REO listings.

Jason Mak · Answer

I agree - let the good commercial brokers know what you are in the market for and interested in acquiring.  Often times they'll dig up a deal for you - they can sometimes approach their other clients who have properties to inquire if they are interested in selling and setup a deal.

Roy N. · Answer

Absolutely!

Charles Smith · Answer

Thanks, I will start immediately.  Have you had success from that particular strategy??

Where to the apartment deals??

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