What are the easiest ways to find off-market multifamily properties for sale?

Question

Please leave any advice on ways to get in contact with multifamily owners.

Matt Skinner · Answer

Join a local Apartment Owners Association.  Volunteer to work their meetings for free if they wont let you join (because you are not an owner yet).

In my investment firm, we get lists of owners from title data or Costar.  Then use the states (CA) Secretary of State website to find who formed the LLC or company that ownes them.

Then we use Intelius.com to search phone numbers and addresses of the actual owners.

We call them.  We mail them.  We door knock them.

Our call metrics are about 20 contacts per 100.

We use the opener:  "Due to tax reasons I'm interested in buying a building in your area in the next 60 days.  Would you be interested in a full price offer on your building?"

A couple of notes on this opening line:

1. Tax reasons imply's you have exchange money burning a hole in your pocket and you are motivated to buy something quick.  Sellers know that exchange money often pays a premium because of the motivation.  Obviously you don't have an exchange - but buying any asset can be for tax reasons.  Remember it's the implication, not a direct statement that gets the Seller to believe you can be taken advantage of.

2.  "Full Price" is a subjective term.  What you are willing to pay is your Full Price - but again, elicits desperation on your part without it being true.

After you have gotten the Seller to acknowledge at least an interest in Selling - develop a relationship with them.  Don't be afraid to tell them this is your first time (just don't ever admit if you don't have funds).  Many older Sellers (men especially) remember what it was like to be young and ambitious and might take you under their wing in a mentor role.  This is a great opening for Seller Financing.

John Tu Nguyen · Answer

Account Closed

Chad if you don't want to spend a lot of money for direct marketing, I would just look for multi-families that have vacancies and call the phone number listed.  You can find these rentals through craigslist, Zillow, or just driving around town and seeing for rent signs.  When you call just ask the person on the phone if they are the owner or the property manager.  If you get the owner on the phone, just ask if they have thought about selling their property?  Most will say no, but if you call enough owners you might run into one that is tired of being a landlord and is ready to sell.  It's a numbers game and you just need to find that one to get you started.  Hope this helps.

Chad K. · Answer

@James Wise thanks for the advice

Jordan Concepcion · Answer

1. As a broker, it probably best to take out an active multifamily specialist in the market for coffee and develop that relationship.  Buyers definitely out number the sellers by 3:1 (my opinion) so it's important humanize this aspect.  Once they see you and "vet" you as a buyer, at least there is a relationship that's started by then.  Broker's still have quite an influence in bringing your offer to the top of the list on a prospective purchase.

2. If you have buddies at a Title company, you can ask for mailing addresses of multifamily owners.  You can probably do a direct marketing letter or flyers to them you can star to research owner information to give them a call.

Hope this helps and please contact me if you need more details

James Wise · Answer

We do a lot of direct marketing.

Internet, yard signs, vehicle signs, billboards, employee uniforms, direct mail etc.

Adam Middaugh · Answer

Hi Chad,

If you have properties in mind the best way to find a listing for the existing owners is through the county assessor's office/web site. This is public information so getting it shouldn't be difficult beyond navigating the site. From there, google the owner's name(s) or LLC information.

If that fails, knock on the front door or speak to neighbors.

Joe Fairless · Answer

Account Closedif investing locally then create a meet-up group and invite them to come speak. If investing remotely, then create a blog and have an interview series with successful multifamily experts and interview them for it.

Assaf Furman · Answer

Account Closed

In the title of this thread you asked what's the easiest way. I'm assuming here that you don't have the time or the will to chase MFH owners. The easiest way is to do that is develop relationship with professionals who actively work with owners such as property managers or commercial brokers, and talk to people around you about the property they rent and more importantly - their landlord.

Chad K. · Answer

@Joe Fairlessthanks for that advice I have got lucky an started talking to a seller ready to sell, its in a rough area but I may be able to find a buyer

Chad K. · Answer

@Matt Skinner thanks for all that great info I have found my local apartment investing group as you stated to do and plan to attend their next event

What are the easiest ways to find off-market multifamily properties for sale?

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