NEED ADVICE: First Time Investor Looking for Apartment Complex Deal

[Neal Patel]

Hi all, 

I'm a first time investor who is interested in apartment complex deals. Nothing greater than $3M at this point. I have the means to do it but can't seem to find a deal and don't know how to start. Any advice? I'm open to different geographies as well. Additionally any buyer's agent referrals would be much appreciated. 

Thanks,

NP

[Brian Adams]

@Neal Patel, I went from buying a duplex to buying and selling almost 1000 apartments valued at over $30 million.

The best advice I can give you is get very clear in your mind on what type of asset you want to acquire. Is it a A, B, C deal or it could be a mix depending on what type of investors you might have in the deal and their risk tolerance.

Write out your investment criteria on a piece of paper.

For example my criteria is " I buy properties built after 1980, B/C class property in B area with pitched roofs, individually metered, with value plays such as low rents, poor management, high vacancy and a motivated/flexible seller. I am targeting properties 100 to 400 units and less than a $15 million purchase price."

It sounds crazy my friend, but once you start visualizing with a crystal clear vision, the types of deals you are looking for will start to show up. Plus since you have your investment criteria documented, you can share with brokers, other investors exactly what you want.

Also when developing your investment criteria, I live in PA and own product in TX and SC. So you need to factor travel into your acquisition model if you are buying outside NJ.

Good luck, I will be acquiring another 100 to 400 unit deal in 2015 using the same approach I shared above.