@Joe S. Yes, multifamily does have a high barrier to entry. Yet it still seems over-saturated with tons of competition.
It's all about connections and who you know in the space. Nurturing relationships goes further than anything else. Good deals are acquired off-market as pocket listings from brokers. For the 10-50 units space, you can still market to "mom and pop" owners, but once you go bigger to the 100,200,300+ units, those all trade via brokers. You have a higher chance of finding a true, heavy value add with the smaller mom and pop deals.
Every market, there are about 5 brokers that control 80% of the deals. Find out who those brokers are and network with them. But don't approach them too early when you're not ready. Be sure you can raise the funds if you are syndicating and actually close. Don't expect pocket deals to start. There's a long line in front of you who have a better relationship with that broker (unless you're targeting under 50 units as not as many people target those).
For the smaller ones (10-30) you can talk to local credit unions or banks, but once you get above $1M loan amount that's not financed through banks. Those will be agency debt (Freddie or Fannie) or CMBS. Loan brokers service those loans.
Another thing I see is those coming from single family are out of touch with today's multifamily market. They come in expecting 10 CAP on a C-class property. In San Antonio and Houston, a stabilized C-class with mild-moderate value add is trading at a "as is" 6.5 CAP. Even lower in Austin and Dallas.
I think your best bet is target off-market 10-50 unit, mom and pop ones, especially now with many tenants not paying during COVID.
I closed a 32-unit right as COVID hit and still took it from 90% occupancy to 100% occupancy in 1 month (Apr 1 - May 1).
Found it off-market direct to "mom and pop" seller. 25% down payment. Ferddie Mac SBL loan 75% LTC, 10 year term, 3.89% interest rate with 30 year amortization and 2 years interest only payments. Step down pre-pay penalty. 1% origination fee
