Trying to get my first set of MF deals

[Ian Ray]

Hello everyone,

So, down to business. I have 3 pocket listings a broker friend sent to me that are things I can't pass on. I have no multifamily experience and very little liquid, but I feel these deals speak for themselves. They are stabilized assets with high occupancy rates and great rental history. These deals are in the Metro Charlotte area, and have value add components as well to force appreciation.

As they currently sit, with no updates or value add plays, we are looking at cap rates of 8.5 on a 1 million dollar price tag, 9.6 on a 2 million price tag, and 9.1 on a 1.2 million price tag. All properties have rent at least 15% below market, and would not take much to update to market standard.

As a novice in this market segment, I have ZERO issues with partnering with a more experienced investor, and giving up a sizable portion of the deal in order to acquire it, and then refinancing them out once I am eligible to do so with the property in our possession.

On one of the deals, the Seller is so motivated he is willing to offer a substantial carry back at the closing table in order to help me cover costs of financing and help buy down whomever I bring in to the deal. He really just wants to retire and not have to actively manage.

I say all this to ask my real question: How the hell do I present this professionally to a person or institution so they can feel reasonably inclined to take a chance on me and the deals? I feel like they are too good to pass up in the Charlotte market, due to a plethora of factors.

Thank you in advanced 

[Chris T.]

@Ian Ray - I'm not sure of the agreement/arrangement you have with the broker, but might you be able to try to wholesale one or two of the properties to then have capital for the third?

I am also a Charlotte investor and my partners and I are actively looking at multifamily deals.  I'd be happy to help you run the numbers so you will have already done the underwriting when then pitching to investors/partners.  There is a difference in what brokers present and what investors really want to know.