How do you locate good MF deals?

[Christian Carson]

Hi all,

I have been trying to get into an underperforming apartment building for a good 6 months and am having a heck of a time finding one that isn't grossly overpriced in my area.

My specific neighborhood has probably 100+ 6-15 unit apartment buildings that are always fully rented at premium rents and are NEVER for sale--I imagine because they're such good cash cows! The handful of places listed on LoopNet, across the entire metro area, are either (a) in the ghetto or (b) contain misleading NOI estimates (most commonly I've seen sellers omit the maintenance budget entirely from their calculation).

I'm frustrated enough with dealing with agents that I'm considering going on a letter-writing campaign to try and draw out the little old ladies who want to dump their headache apartment buildings. Has anyone had any luck taking this route with apartment buildings? Any other tips?

[Dale Osborn]

Check for a Hendricks & Partners website for your area. They are the first name I can think of that deals only in MF apartments. There are several others - if you did a search through the archives you would find the thread that mentioned several different brokerages that just specialize in apartments. Another thing you need to consider is many of the commercial agents work with pocket listings. They take the listings and sit on them only contacting those on their list that are currently seeking apartments. You need to get in touch with these agents and let them know you are actively seeking something to buy.