$1-$3m Multifamily in Tennessee

[Chris Wooten]

    I have been scouring the listings this year trying to find a multifamily property in TN, that won't turn in to a money pit.  I am a new MF investor, so I am very attentive to the lessons that have been presented to me.  I have possibly been too restrictive holding me back from getting in to a deal.

    I was in contract for 36 units from a private seller, but the owner couldn't complete their post renovation occupancy requirement in time to satisfy the lender's requirement.  I was also in contract for a student property through a commercial broker that is poorly managed causing excessive vacancy and because of this I was unable to secure funding for this deal.  I am currently working with yet another commercial broker in another town, but I finding that his current rent numbers are grossly inflated.  This is giving the owner a false sense of value and making it increasingly difficult for me to submit offers in this city.

I am open to review any private multifamily properties in Tennessee. Does anyone have tips or pointers to get me over the goal line? I did just finish reading a post that stated to look for 5-6 CAP properties that are value add instead of focusing solely on >7 CAP.

Thanks for reading and any response,

Chris

[Mike Dymski]

Chris, the best deal flow in many southern states comes from the brokers who specialize in apartments.  The have the most listings and, more importantly, the most properties that never get listed.  There are usually a couple to a handful of brokers in each market that have 80+% of the deal flow and those are the brokers you want to spend most of your time with.  Most people think that brokers spend their time marketing and selling properties and that may be true for the firm's rainmakers but those firms have teams of people who spend all their time perpetually contacting and fostering relationships with apartment owners.  If you foster relationships with those same brokers, have capital and are a closer, they will send you deals.  Fostering a relationship is more than just a phone call too.  Good luck with your search....hope this helps.