I’m looking for information on where to market for apartment complex deals.
Where should I focus my marketing efforts to find off market deals?
Thanks!
Have you considered getting Ray Alcorn’s course on commercial deal making? You can click on “Real Estate Courses” and find “Dealmakers Guide to Commercial Real Estate”
If you’re asking such a basic questions, you’re probably gonna need much more basic information.
Hi,
Just because an apartment complex is off market does not make an off market property a deal! Apartments are sold based on cap rates which is the current financial health of a property, reflected in an assessed value projected into a market value price.
The seller knows his property is unlisted and off market and knows the cost of listing services but if an owner is interested in selling he sure doesn’t want to give away the cost of professional sales management to a potential buyer. You may find some give and take but generally off market is only a few percent better in negotiating purchase price.
But the problem with off market is that property may be in a location and market that does not constitute a good investment opportunity and may in fact make a listed property worth more in financial investment strategy.
I have seen a lot of apartment properties over the years, but a dog with fleas is still a dog with fleas until it’s not so beware of the idea that off market is the golden goose because that is probable not the case.
Bad market, bad location, bad condition equals distaster!
GR
Theoretically speaking, one advantage of finding ‘off-market’ deals, is that the property isn’t being exposed to every Tom, Dick, and Harry. That reduces competition.
However, great deals all boil down seller motivation and the upside potential. You need one, or the other, if not both, depending on how ‘creative’ your financing offers are.
If you’re not making any creative financing offers (no down payment, etc.) it’s probably more efficient to rely on an agent.
I’ll just say that any formally listed is probably a terrible deal. And you have to get to the inventory that hasn’t made it to the public yet.
I could write so much more here, but you want to limit your negotiations to motivated sellers. You can’t always know, until you make an offer. Otherwise, you’ll find yourself getting desperate and ‘motivated yourself’. Very bad psychology, and even worse negotiating mindset.
The other thing: Work at analyzing 100 operating data statements (actual and pro forma), before you get serious about negotiating a deal. This will give you a lot of insight into any operation …to the point where you can fill in the blanks of incomplete operating statements, and recognize upsides that are not necessarily obvious to others.
Frankly, I can practically mind-read a seller’s operation, simply by looking at the seller’s current numbers, against what I know should be happening with other projects in that market. That’s what you can do, if you’re willing to do your homework.
Loopnet usually has some really good deals.
Loopnet is where deals go to die!
Offmarket deals are best found looking for owners of over 20 years! Do some simple research with your Title co.