I have been actively looking at properties over the past two years and have had no success at closing a transaction. I have put offers on atleast 8 properties in Weehawken, Hoboken, and Jersey City. Some have been outbid, some make it far into the process to find a issue like low appraisals, and some have had structural issues. I have switched attorney’s, banks, and been through many realtors, but in the end I am still back at square one. I have been using realtors who know multifamily transactions and know their locations. I don’t just use one realtor for all 3 areas listed above. I probably have 5-7 realtors I actively keep in contact with who alert me when new things come on the MLS. Any feedback on ways I can improve?
I spoke to a member in a near by investment club and he said properties on the MLS are the ones real investors have already seen. Good properties don’t make it to the MLS. (I invest on the side)
I am seeking 4+ unit properties in Hudson county NJ close to commuting lines into NYC. 650K and under purchase price. I have been pre-qualified by a few local banks. Both residential and commercial.
I started reading your posting starting with your title, I at first thought you were referring to apartment buildings but upon reading further you are actually looking for 4 unit residential property.
The three towns or cities your searching in Hoboken, Weehawken and Jersey City are together the equivalent population of a single city like Corpus Christi Texas or Riverside California. Because your searching in such a small fixed area about 1/10 of 1% of the US population you will have a lot of local competition.
And you probable will not find a property to buy below FMV, I personally would expand your area into all the decent area’s of New Jersey opposite of New York, at least then you give yourself a fighting chance.
I have never paid more than 78 cents on the dollar for any residential 1-4 unit property ever, but I also have never limited myself for location as I always buy real estate as an investment for the returns and have no love for any property or place!
Most of your competitors are probable not real estate investors but making investments in real estate probable to harbor money for decent returns, there is a real difference between a real estate investor and an investment in real estate, as one is working at a profession and the other is just buying retail property.
I would be making offers on literally everything available and weeding out the wheat from the chaff! It seems to me you have a good team and bank approvals so you just have to find the property.
I make probably 100+ offers a year to get maybe 4 that actually close when bidding on MLS properties.
Low appraisals and structural issues shouldn’t kill a deal, it just means it’s time to renegotiate based on the new data. Sometimes you can get concessions sometimes you can’t.
You can also market to find off MLS deals. Send letters to all the 4 plexes in your area to see if they are interested in selling. It’s all a numbers game. Don’t get discouraged just keep plugging away.
I agree with whomever told you the deals are not on the MLS. I do have someone who is a realtor, but only works with investors and a good 80% of the deals he does never make it to the MLS - he has a network of investors that he keeps in touch with, knows who’s buying, who’s selling and who might want to do either if the right opportunity comes along, so he just makes calls and we (those who invest or sell) call him if we have something or know a friend who is starting to look at their REI options.
Most realtors deal with occupant-owners, they are not well versed in investment real estate or do not typically understand how to negotiate other than filling in the blanks on their brokers contract forms. Find yourself an investment realtor or bird-dog wholesaler, they’ll have deals you’ve never known existed out in the REI community.
Do you have an REI investment club in your area? Apartment/landlord association? Some way to network with other investors to learn who is who?