All Forum Posts by: Johnny P.

When I started I found ONE property on CL that I actually flipped. I noticed it was only posted by the seller one time and they didn't know how to post a picture on the ad. So yes it is possible, however, I spent tons of time searching CL to find one small deal. Not worth the time for me because my area is bombarded with CL ads daily. Might work better in a smaller town with less wholesalers and less CL activity.

Tony, I think your only chance at finding a deal NOW is working with a broker who's already been farming for 2 years or to drive for dollars.

I HATE driving for dollars because normally its a massive waste of my time. However, I have been to a few properties to meet owners and noticed that they have their PERSONAL numbers on the for rent sign. This normally doesn't happen but I have seen it a few times.

You would need all of the stars to align and drive to apts in your target area, find a for rent sign, call the number and hope its the owner, hope the owner is motivated to sell, hope they are realistic about the value of their property etc etc etc

It could happen!

P.S. if you ever need comps to help determine whether or not you came across a deal on apt buildings in FL let me know, I would be more than happy to help out

Hey Tony,

Your strategy can definitely work and I've seen others do the same, there are tons and tons of apt buildings that need work and are being poorly managed by the current owners.

I have built a database of properties in my area - orange, seminole, brevard, osceola county etc. I target properties that were purchased in or around 2002 or 2007.... these would be the most likely owners to be facing balloon payments in the near future ( 5 & 10 yr balloons). I'm looking for owners that are motivated to sell and that are realistic about meeting the market to sell. These are few a far between. I have built a list of about 2000 apt buildings so Its pretty hard to burn through the list. Many are not interested in meeting, some will meet but are not motivated or realistic, and some actually want to sell so I get the listing and start marketing to buyers.

So to answer your question, yes I go down the list and call every single owner. I want to know as much as possible about all of the owners so I will call anyone and everyone. However, I wont list a property with an owner who is not motivated or with an owner who will not meet the market.

commercial properties don't get posted on the MLS. If you see one there it gives you very valuable information -

You can be sure that you are working with a residential agent that happend to stumble across a commercial deal. This most likely means the the underwriting and values are off as well.

Why people sell -

Lifestyle change

Sick of being a landlord

or a BALLOON PAYMENT IS COMING DUE AND THEY HAVE TO EITHER SELL OR STROKE A CHECK

Hey Tony,

It looks like you're looking to buy apartments that need work and rehab them for your investment company, is this accurate?

I'm sure you know since you've been in the industry for a while that it takes a lot of hard work and good research to locate these deals. There are guys like myself out there that prospect owners of apartment buildings all day long and it sure isn't easy, but it is possible.

Most of the owners that are worth talking to are very hard to find, the only way to connect with these types of people is to be highly specialized and focus only on apartments owners and build relationships with them.

100 postcards is a good start, but i would recommend making calls EVERYDAY to actually find an owner who is willing to sell & is realistic about the value of their property. If you don't have time to look for deals all day look, reach out to local brokers and tell them what your buying criteria is. Let them bring you the deals and analyze them as you go until you find properties worth buying.

Your list is from the title company? Is it a list of owners in your area and their phone numbers?

Here is my opinion of what the problem is... you are going directly for the "I have buyers if you want to sell" approach. Commercial deals don't happen this fast. This works for wholesaling FSBO single family houses but not in commercial.

Why would they list with you if you are not expressing to them how you can add value? Instead of asking if they want to sell, i would recommend asking if they would like to meet with you and discuss their strategy with that particular property.

Beauvias - most of the time with apartment buildings that are listed you will need to rely on a broker to bring you a deal that meets your criteria. Most agents like to work their listing before they put it on places like loopnet. FYI most people that put commercial deals on CL are a joke or just do not understand how to best use their time. When we get a listing on an apt building, normally we call every owner + cash buyer in our specific area (this is a list that is EXTREMLY hard to find and requires a TON of research)... only after exhausting our resources do we place deals on loopnet. This happens because most brokers with a great deal are hoping to get both sides of the commission instead of splitting it with another broker.

In your situation I would connect with other brokers and explain to them your situation. Let them know that you are working with an international buyer who is actively buying. I would also recommend letting them know what deals they have already closed on and when, as well as giving them an overview of their investment strategy.

How many units are they looking for? Are they all cash buyers? How will they be managing the apartments? What class of property are they looking for?

Trust me - if you call and broker and tell them EXACTLY what you are looking for, they will DEFINITELY call you if they have a property matching your buying criteria.... its what we do... phone calls and research all day everyday to potential buyers and sellers.

Cash can close quicker and easier

WHY DO THEY SPEND SO MUCH TIME AND MONEY MARKETING THEIR SOFTWARE IF THEY ARE USING IT TO MAKE TONS OF $$$$$$$$$ FLIPPING HOMES. Obviously they make more money SELLING SOFTWARE than flipping houses..... Hey maybe I should sell a course/program too! :idea: