How do you find good apartment building deals?

[Ben Feder]

I know when it comes to SF and small MF you can look for motivated sellers through list sites, but how can you find a good deal when it comes to apartment buildings? Are there motivated sellers when it comes to apartment buildings (5+ units, possibly around 30-50 units, maybe more)? Are there foreclosure bargains to be had? What criteria are there for buying apartment buildings? Any input is appreciated as always.

[Greg Dickerson]

@Ben Feder yes there are motivated sellers and forecloses. Like anything else right now you need to constantly be looking at deals. 

Some of the the best ways to find off market commercial and multifamily properties is to compile lists from city and county websites if available or through a paid service like List source, Reonomy and CoStar or you can use free resources like Loopnet, CREXI, Craigslist, tax database, general networking, brokers, property managers, title companies, environmental consultants, building inspection companies, appraisers, landscapers and other companies that service commercial and multifamily properties and driving for dollars.

The real key is in how you approach the owners and then the follow up.

You can send letters and email but cold calling is by far the most effective method but you really need to know what you’re doing, how to open the conversation, what questions to ask and more importantly when to listen and not talk. Most importantly you need to convey confidence and assurance you are a player and not just wasting their time. Remember you are building relationships with the owners.

Follow up is crucial and where 90% of investors and sales people fall short. You have to consistently follow up in a meaningful way and you will get deals.