All Forum Posts by: Steve Raysich

HI Everyone!

I am looking for some advice here, I have been in the real estate industry for a little over 10 years now mostly as a commercial broker.  I have owned a few duplexes and have recently sold two, now I have cash burning a hole in my pocket!  I have been looking for 4 - 16 unit apartment properties in Milwaukee and am coming up with zero good buys.

I have sent out letters to owners in my target area to see if anyone is interested in selling and have gotten zero responses.  I have reached out to dozens of brokers, attorneys and appraisers asking them to keep an eye out for me, no leads!

I have run out of ideas, maybe I am going about this all wrong.  Any advice?

HI @Gerald Gomez

Multi family has a lot of great options and paths within it. Are you going to be looking for distressed properties or properties that are already cash flowing? What size property,1-8 units or 8 and more?

I like 8 units and above and I get a lot of deals from commercial brokers, I would recommend getting on the mailing list of the commercial real estate companies that sell multifamily (CBRE, MLG Commercial, Marcus and Millichap, Sigel Gallagher, ext) they are a great resource and typically know who might be interested in selling.

I also use the old school method and drive around a look for “For Rent” signs and call the owners and see if they have any properties they are interested in selling. Its time consuming but is a great way to know who owns properties in your target area.

I have also been looking into joining some southeastern Wisconsin groups to help network and get connected with other investors and vendors. I have heard good things about Apartment Association of Southeastern Wisconsin () It is paid membership but the benefits look to be worth the membership fee. They also have monthly meetings which would be a great place to meet people that can help you grow your business. I am probably going to join next month; I will let you know if I think it’s a good investment.

HI Kevin,

Welcome!  Lots of Wisconsin people on the site.  Do you work for a big firm or have your own company?

To me the price doesn't seem that high. 18 Units with a gross income around $166,000 and an expense ratio of 55% (which is probably high) still leaves you with around $75K in NOI. At a 10% cap rate that would be a purchase price north of $750K. From a cash flow perepective with a long term hold play I would say its at least worth taking a look at.

hi Rebecca

I typically am looking in the general Milwaukee area, but am open to expanding down south. Let me know what you have and I will tell you if it's something I'm interested in. I am looking for multi fm wily properties. 

Thanks 

Steve