Finding Multi-Family Plexes
I was wondering if anyone had any input on the ideal way to find these properties would be.
So far I've seen just good options.
Houses listed for years.
Expired listings.
It seems since most plexes are owned by investors (right?) that they would only sell to get a good profit out of it, and most likely wouldn't be a good deal, but probably above market value.
I probably just need a slight perception correction here.
Thanks.
Kris
Can you define Multi-Family Plexes? Are you talking about 100-200-300-500+ unit apartment complexes or just large apartment buildings?
Most large complexes are owned by investor groups and REITS. The same goes for larger apartment buildings.
Respectfully,
Phil
Phillip Herrejon
President of the Chicago Real Estate Investment Club
Investment Property Finance Consultant
312.375.7132
I was thinking of plexes as in, du[plexes], tri[plexes] and quad[plexes].
So I'm thinking 2-4units.
Sorry for the terminoligy mixup.
For the sort of properties you're looking for, there are a number of options.
- Look in local paper. Sunday is usually the best day.
- Speak with local residential and commercial real estate agents.
- Check our REALTOR . com
Two of the four 4-plexes I own were found through these sources.
Good luck.
[addsig]
The benefit of multi unit's is that you are dealing with investors. They aren't some homeowner that jacked up the price because all 9 of their kids grew up in the home.
As for making a hefty profit...I feel most investors would leave some equity in the deal for the buyer. Multi family properties are all about cash flow. you are buying the cash flow...not just the physical building.
I love multi family properties! While I never wanted to be a landlord, it is a great vehicle to get where I'm on my way to!
Good luck.
That makes a lot of sense, thanks man.
Kris
I like to think that investors are generally more stable and wise, but that is not always true. You can find motivated sellers for every kind of property. I know an individual who purchased some apartments in Boston (60 or so units) for $.20 cents on the dollar. (yes you read that correctly) and sold them the same month for 5 times as much. Turns out the guy owed the Mob some money that was due on Saturday. This guy paid him cash on Friday. (VERY motivated) He was a dead man without the money and he knew it (Literally, not figurativly).
That's an extreme case, but they may have found a great 1031 and time is running out. They might be retiring and getting out of the business or becoming a HML or note buyer.
Go through the "for rent" section of the paper. Call the owners and ask if they're interested in selling their property. You'll be suprised at how many say "maybe" or even "yes".
Other places: RE attorneys, title companies, banks, investors, apartment associations, etc.
Drive neighborhoods. The places that look run down are often the ones that will be for sale.
I don't know what you all think since I'm a newbie but......I went online and researched my county tax records. I searched the land use codes and filtered only on 2 family or higher properties. This returned the parcel numbers with which I could then get the mailing address where the tax bills were sent. I sent out mass mails to these addresses with my business card and a letter saying "call me if/when you are thinking of selling". So far I have had about ten phone calls and I'm buying my first property.
Geovest has a great idea! I have tons of sites for the Phx area. I did a Google search for something like "Phoenix Investment Property" and filtered through the web sites to find the ones dealing with multis.
Best,
Ryno
If you don't mind Banks and property abroad try:
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****Must Reach Freshman Investor status before posting URL's***
****Must Reach Freshman Investor status before posting URL's***
****Must Reach Freshman Investor status before posting URL's***
all of them have several 2-4 unit properties. I know commissioned sold properties are not an investors dream but let the bank pay them.
those were fanniemae, freddiemac, indymac, and buybankhomes all have websites posting property
It's not the creative way, but your local MLS/real estate agent probably has listings for multi-unit properties.
A quick check for around here - there are 176 listings for King County, WA (King County includes Seattle and Bellevue/Redmond, home to the little software company run by a guy named Bill), multiunit places. None have more than 30 units.
[addsig]
I believe there is a website that has nothing but 4-plexes. You might try a Google search to find it.
Also, there are investors that may sell off a large part of their portfolio and may sell at discount. Also not everyone is a successful investor which will also create opportunities for discount purchases. I second the idea of trying a real estate agent for starters.
There are TONS of people out there who bought a real estate course from TV, attended a real estate seminar or such.
They were totally fixated on buying a duplex or 4plex and how to get a loan.
Most of those courses never tell you what to expect when you have to actually MANAGE the properties.
Soooooooooo in my opion there are alot of DON"T wanners out there on duplex and 4plexes.
To me when I want to find one with good cash flow and in need of some fixing I look at the little free real estate circulars.
Especially the ones which are showing primarily single family houses.
Just pass right by the ones with all the pretty color pictures on the front because the houses in there are too expensive for what I am looking for.
Go strainght for the cheap black and white circulars and got to the back pages where it costs the least to advertise. There I will hopefully find a residential real estate agent who for goodness knows what reason has convinced some poor DON"T WANNER to list their commercial propety/4plex in with a real estate company that doesn't even have a commercial division and is too cheap and lazy to get a good picture and make a nice detailed listing.
(if you can imagine that ANY real estate agents are actually like that.)
Even better if the picture looks like crap and the description says nothing about how much the rents are or any detaill of any value.
I then go the the web page of that real estate company and try to figure out where the property is located by finding the address or some other bit of information. Then I put it in the Yahoo search engine. MANY times it will pull up another website which gives some more details.
If it lists the address or I can figure out where it is I take a drive over there do some footwork asking one of the tenants who invariably is working on a rusted out car in the yard, if there are any apts avialable and how much they pay. Ask them some questions about the neighborhood etc.
Then I walk around the neighborhood. If I don't get caught in a cross fire of waring gangs I figure it might have potential.
Now I go to my trusty real estate agent who I have used before. He gives me a percentage of the commision of any property I buy though him. He can do this legally because I went ahead and got my license a while back for just this reason.
He contacts the selling broker and gets more info. and I go from there.
What I end up with is a rental which the tenants have basically taken over and needs some work and probably isn't even fully rented.
A few months later if things go well it looks better, the apts are all rented and cash flow is going well.
How often do I do this ummmmmmmmmm
well not as often as I should, I get lazy too you know. <IMG SRC="images/forum/smilies/icon_biggrin.gif"> [ Edited by MrMike on Date 12/09/2003 ]