Savvy investors know that a multifamily property will rarely have signs plastered everywhere that it is for sale, but that does not mean it cannot be purchased. Often these off-market multifamily properties offer great investment opportunities; you just need to know how to find them.
1. The direct approach
Sometimes the best approach is the most direct one, which means exploring the area you are interested in and looking for multifamily properties. Even if they are not for sale, you can still get in touch with the owners and find out if they are willing to let go of the property. Be on the lookout for vacant or rundown-looking properties that you can spruce up as the owners of these might be more open to selling. Even if the owners are not willing to sell immediately, leave your details with them and they might get in touch with you if they ever decide to do so in the future.
2. Hit the auctions
Although they are not as common as single-family homes, multifamily properties do occasionally pop up at foreclosure auctions. Set yourself a reasonable budget for your bids and do as much due diligence beforehand to ensure that you get a good deal.
3. Do a little digging
If you are willing to take some time, you can find lots of potential multifamily properties by getting a list of properties from your local county assessor. In particular, you should look for out-of-town owners who might be tempted into selling. Other sources worth examining are foreclosure records and expired listings as these can also sometimes yield interesting results.
4. Build up your contacts
Although doing all the hard work yourself will pay off in the end, you can also make use of other people to ensure things go a little smoother. The best way to accomplish this is to build up your contacts in the industry so that you have access to information before it goes public. It is particularly beneficial to have solid relationships with lenders if you want to get on the inside track for good deals on multifamily properties.
5. Use the internet to your advantage
Thanks to the internet, you don’t have to go out and get your hands dirty to find good deals. Join forums or groups on social media to keep your finger on the pulse of good off-market deals.
Finding off-market multifamily properties can get you some good deals, but remember that the competition can be fierce. This means that some diligence and dedication from your side is essential if you don’t want to miss out.
Related Articles:
How Do You Know You’ve Found a Good Real Estate Deal?
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