Wholesaling Larger MF Properties

[Duncan Hayes]

I’ve completed contract assignments on some single family properties & one duplex. I’d like to wholesale larger properties (8+ units) & would like to connect with anyone doing the same.

Is it the same exact transaction for the most part, with just more doors? What are some bumps in the road you’ve experienced? What was something you did, or could’ve done, to make it go smoother?

Thanks in advance!

[Evan Polaski]

@Duncan Hayes, any investor is looking for deals that they feel are a discount to open market.  So yes, I think everyone would say there is value to that relationship.  The only practical issue is that there are a lot of people going after multifamily deals, and considerably fewer deals to be had.   Driving around my neighborhood, there are probably 15-20 single family houses for every one multifamily (duplex of larger), so the supply demand dynamics are even less in a wholesaler's favor than single families.  

But, if you have good connections and can get those deals, there is value.  Again, you start to get into an area of connecting buyers and sellers without a license though.  In Ohio, it is illegal to pay anyone that is not a licensed agent a finder's fee, but I am sure there are some enterprising attorneys that know how to classify various fees so as not to break any laws.

If you are trying to get into your own deals, I would start with what you know, trying to raise money and grow that.  It is not a stretch if you have a couple single families to go to a duplex or 4plex.  Those that helped with the single families may fund a little more to do a 4plex.  Do well with that, and you get into an 8 unit, again not a big stretch, and hopefully you have been networking with those that helped you and their friends.  8 goes to a 20 unit, to a 50 to 100+.  You make incremental steps and grow your network each step.