Finding Great Multifamily Investments in HOT Markets

Discover how to find great multifamily investments in hot markets. Some multifamily real estate investors complain that there aren’t any good deals left but the reality is that there are always great deals if you know exactly where to look for them. You’ll learn how others are doing it and how you can too. Don’t wait to invest in multifamily real estate just because some people think that all the good deals have been taken. Instead, find out how to find great multifamily investments and use the hot markets to your advantage!

 

Hot Multifamily Markets

Are you having a hard time finding good multifamily investments in your market? Many investors complain that all the great deals are taken, everything is overpriced, and there’s way too much competition. These three comments are very valid, very legitimate complaints if you are in a hot market. The multifamily apartment industry is hot. It has been hot for years and will be for years to come. So the question is, how do you find great deals in hot markets?

 

Finding Multifamily Investments in Hot Markets

Our Proteges, Dave and Andrea, bought two apartment buildings back-to-back, month one and month two, in what was the hottest apartment markets in the entire US at the time. Not only did they find and land these two deals, but both deals were priced under market, with under market rents, which is a huge upside. How did they do it?

Off-Market Deals

The best deals are found off-market. Brokers don’t know about them. They can’t be found on Loopnet, or even on the MLS. The best deals are off-market.
Dave and Andrea were complete beginners when they joined our Protege Program. How did such novices find these two great deals in an ultra hot market? They followed our step by step instructions which included building relationships with multifamily investment owners and become problem solvers for those owners. Multifamily investing is a relationship business. When you build relationships with multifamily property owners, you can structure win-win deals.

 

Dave & Andrea’s Multifamily Investments

Their first investment was a five unit apartment building that needed work, but had a lot of upside potential. Dave and Andrea chose a 75% loan-to-value local bank multifamily loan and upon closing, made several improvements so that they could increase the rents and therefore raise the value. This allowed them to do a cash out refinance, return their original down payment and then use that money to purchase a second property. The second deal was an off-market 6 unit apartment with below market rents.

 

5 Tips on Multifamily Investments

1. The Right Mindset: Do You Have the Right Mindset to be Successful in Commercial Real Estate? It’s important that your head is in the right place so that you can overcome the fears of speaking with owners, lenders, property managers, and the like.

2. Target Off-Market Deals: Multifamily properties listed with a Broker are almost always overpriced. You need to focus on off-market deals if you want to get the best deals.

3. Know How to Negotiate with Owners: Once you have identified an off-market deal, you now have to negotiate wisely to get it under contract. What you say and how you build a rapport to understand a owner’s motivations is crucial to putting the deal together. Learn more about how to do this in this training: 3 Tips to Get Commercial Sellers to say YES to Your Offers.

4. Increase the NOI: The purchase of the multifamily investment is just the beginning. Then you must increase the net operating income (NOI) so that you can do a cash out refinance. That requires knowing how to increase the rents and to reduce the expenses.

5. Get a Mentor Every successful multifamily investor has a mentor. It’s your fastest and easiest way to acquire multifamily investments to right way, from the very beginning. Dave and Andrea are one of many examples of people we have mentored to success and we can do the same for you. Apply to our Protege Program now and get the mentor you need to find great multifamily investments in hot markets.