How to find distressed apartment owners

Question

Good afternoon everyone, I'm looking to invest in distressed apartment complexes and multifamily in houston, texas or anywhere in texas and atlanta, ga. The problem is I'm having a difficult time locating the distressed properties, any advice would be greatly appreciated

Todd Dexheimer · Answer

Look for signs of distress on the outside and call/mail the owners.

Chris Tracy · Answer

Call property management companies in the area and position yourself as an investor that is looking for deals and trying to line up/interview PM companies as well.  This is one of my favorite, often overlooked strategies.  PM companies can often lead you to a deal.  However, sometimes... it's the PM company's fault as to why the deal became distressed... a bit of a double edge sword, but worth it for potentially getting the inside track and ideally for something off-market.

Kory Denny · Answer

Search for owners who are out of state, have 50% equity or more and have owned the property for 10+ years. There's plenty of information on the BP site about how to send direct mail, drive for dollars and even internet marketing.

There are also websites they may provide this information for a fee. I haven't used any of them but some of our members have.

If you haven't checked out some of the podcasts involving direct mail marketing and commerical financing I suggest starting there.

You could also look into which property owners owe high taxes, have several recent evictions or many other circumstances. Remember you will be solving a problem for many of these landlords.

Alexandra Yellin · Answer

@trottiemcqueen   I noticed the questions posted on your thread and I think I may be able to help. I work for a commercial and private money lender; if you ever decide to go this route, I would be happy to give you general information on what to expect as well as the pros and cons of using private money v. conventional financing. Please reach out with any questions.

Todd Dexheimer · Answer

I would personally focus on in state owners that are mom and pop type and have owned it for 10+ years. Out of State is good too, but so far most of the deals I have seen and purchased that are good deals are in state owners.

Daniel Johnson · Answer

You got your wish, in Houston

Corby Goade · Answer

@Chris Tracy. genius idea. Thank you for sharing.

Grigory Pekarsky · Answer

When you're looking for property to invest in, finding distressed apartment owners is a great way to purchase your next property. Not only will this allow you to get a good deal on the price of the property (because they need money fast!) but it also allows you access into an area that most people don't have. Making connections with distressed apartment owners can help give you insight as well as valuable information about how they became so stressed and what made them want to sell their properties. This is why knowing where and how to find these individuals can be very beneficial when trying to buy real estate at a discount. In order to find these distressed apartment owners, you must first know the signs of a distressed apartment owner. Some common signs would be:

• They have been served an eviction notice
• They are behind on their mortgage payments
• Their monthly cash flow is very low
• They do not pay their maintenance fees in a timely manner

There may be other small indicators that can help you figure out if an individual fits into this category but this is a good list that keeps a majority of people in mind. If you see one or two items from this list then it might be worth taking down some information and keeping your eye on them for when they need to sell.

Daniel Johnson · Answer

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How to find distressed apartment owners

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