Are Buying Agents that look nationally available

[Gabriel Miller]

Are there Agents that specialize looking at the entire US market to find apartment deals for buyers?  It seems like most agents focus on a smaller market like one city.  Problem is that I cant figure out what market I should be looking in and it is overwhelming to look everywhere.  I would love some advice from a professional on where to focus as well as help with finding deals.  I need someone that has their pulse on many markets and has connections in many.  Does anybody do this?  Below is my buying criteria (feedback welcome)

I have $200K cash to invest and I am looking for apartment buildings anywhere in the US that can meet the following criteria:

-$2K per month minimum cash flow

-Location: C areas that are in the path of progress that are likely to transition to B areas. Or properties that are already in B or A areas.

-Building type: C properties or better

-Return: 10% cap rate or better on actuals. Less than 10% cap rate ok if there is a strong value add play and/or property is clearly in an emerging market and in the path of progress.

[Brian Burke]

@Gabriel Miller, if you are looking in the small multifamily space (say under 20 units or so) listings are typically advertised on the local MLS and any agent licensed in that state can represent you. In the larger multifamily space, brokers rep their own listings and tend to dislike sharing their commission, so if you come in with a buyer's broker you are at an extreme disadvantage against the other buyers that are going to the listing agent directly.

Your best bet is to find a market to focus on, then hit it with everything you have. Get to know all of the brokers that sell the type of property you are looking for, watch what is listing and trading so you can get familiar with the market.  Build your team of advisors (property management, lenders, insurance, contractors, etc). Lack of focus by trying to look nationwide when you are only buying one property will get you nowhere. 

By the way, forget about a 10% cap rate. Those are only found in war zones or by investors who are running the numbers improperly. The good news is it doesn’t matter, cap rate is only a yardstick for measuring the price folks are willing to pay as you compare one property to another. It has nothing (or very little) to do with return on investment. What you are after is 12% cash on cash (using your numbers of $2K/Mo on $200K).  Difficult to find but probably not impossible, especially if you are willing to wait until year 3-4 for it to build up that high.