Purchasing multifamily property is a phenomenal long term investment for building generational wealth. At my company The Green Organization, we’ve built a portfolio that manages hundreds of apartment units. When you’re first starting out it can be painstakingly difficult to find apartment deals. They are so competitive today. Let’s get started in finding your first apartment deal.
Everyone wants theses types of assets in their portfolio because they’re a reliable way to create passive income. Owning real estate allows you have a larger basis of write offs that can deplete your income tax liabilities. In this article I will give you a few powerful tips for finding your first deal.
Search Listing Websites
If you’re searching for multifamily properties to purchase, check websites such as Loopnet, Zillow, Trulia, CBRE Multifamily, HFF, and ARANewmark. These websites provide deals in every marketplace around the United States. You will be able to filter by deal size to fit your deal criteria. These website provide the vast majority of deals in the marketplace. Combine this process with the next tip.
Connect With Apartment Brokers
Getting in touch with brokers and building a relationship with them will increase your chances of finding a deal, whether it’s now or in the future. Stay in touch, don’t just hit it and quit it. Continue calling every month to check in and see what’s new, deals are hitting the market everyday. Start a spreadsheet with the name and numbers of each broker that has deals you like and stay in touch with them.
Build Your Network
Meet new people within the marketplace you’re trying to establish deals in. You’re only as powerful as your network. 50% of the deals I complete are from people I know. The more people you know in the marketplace the better. Building your network takes time but once you’re established, industry leaders will be coming to you with deals, rather than you searching them out 100% of the time.
Stay persistent so you can win deals in your favor. You will find deals purely by being aggressive in your search. You may have to analyze 50 deals before a couple of them work for you. Sellers need to know, like, and trust you. And the numbers on the deal must make sense for you to close the deal. A seller will not sell a property to someone they don’t feel comfortable and confident with. Start building strong relationships now and build your multifamily portfolio so you can build real wealth.
Now get out there and find your first apartment deal.