Finding Deals

How To Find Distressed Multifamily Properties | Multifamily Marketing Funnel

How to find distressed multifamily properties. I hate to disappoint you, but you won’t find these on any list.

Good deals, deals that are really “deals”, deals where there is a healthy profit for you, are a needle in a haystack.

hHow to find distressed multifamily propertiesTo really ”get” this reality, grab a list of absentee apartment owners and start calling them, asking if they want to sell. See how long you last.

The deals are there. But where? Will you keep calling until you find them?

The answer is “no”, you won’t. Unless you love confrontation and rejection, it’s just too painful.

Having a system for lead generation and lead conversion is how you find distressed multifamily properties, develop profitable deals, and extract the needle from the haystack.

The System Is The Solution

Before setting out on your quest to put a smoking hot deal under contract, bear in mind, there are forces arrayed against you whose aim is to achieve the exact opposite; that is, to get you to pay more than you should.

There is a whole industry set up to assume you are the dumb money. So you have to be smart.

Profitable deals come from motivated sellers, people who don’t want their property, and want to end their ownership of it, so they can be free of the problem the property represents and can move on with their lives.

It’s important to realize, a seller only reaches this state after every other option to get a higher, usually unjustified, price has been exhausted. There is a lot of denial and magical thinking the seller indulges in before accepting the reality they will not get what they want, and (god forbid) have to lower their price, and/or be more flexible on terms.

Hand Me That 2 by 4

As the buyer, spending time on sellers who are not dealing with reality is time completely wasted. You want only to be spending your personal time and attention on a seller after they have been slapped around by the market. Ideally, right after they have been smacked up side of the head with a 2 by 4 and their ears are still ringing.

For example, after 18 months on the market the property has fallen out of closing for the third time, the REO manager responsible won’t meet his numbers for the quarter and his job is on the line. Read more…

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Posted by aws - February 21, 2017 at 4:31 pm

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How To Find Multifamily Deals Others Can’t See

find multifamily dealsA little appreciated but highly effective way to find multifamily deals to wholesale is, wait for it … door knocking. That is, walking into the leasing office of an apartment building and asking to speak with the owner.

I know, just reading these words, you’re already dismissing the idea. Cold hard reality? For working your local market this is one of the most productive things you can do. For a number of reasons.

1) When you walk into the leasing office and ask to speak to the owner, and then start speaking with the owner, you uncover situations that do not show up anywhere else. The owner knows the property like no other, and he/she alone knows when there is trouble brewing, and if selling now may be a good idea. There may be partner trouble, the death of a principal, foreclosure looming. Previous to any legal notice, the only signs of any of it would be the stress lines on the owners face. When you knock on a troubled apartment owner’s door; a) he/she sees you as a godsend, b) this is your motivated seller and no-one else’s. Read more…

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Posted by aws - November 4, 2016 at 3:24 pm

Categories: Finding Deals   Tags: , , ,