Are you having trouble finding great real estate deals? Are you unsure of how to find your first multifamily investment deal? You’re not alone! We all struggle with finding great opportunities—that’s the name of the game. But in this video, we’re going to show you where to look and share some valuable tips to help you find off-market real estate deals.
If you haven’t watched one of our videos before, I’m Amanda, and this is Ali. We’re with ProspHer Collective, specializing in providing education for women who want to invest in real estate. We’re so glad you’re here!
Mindset for Success
Let’s talk about the mindset needed to persevere through the challenges of finding real estate deals. It’s easy to feel discouraged and think, “I have my criteria, I know the basics, but I’m just not as good as someone like Ali, who’s closed on 12 deals.” That comparison can lead to imposter syndrome. But if you’re watching these videos, digesting the information, and have that desire, you’re already in a growth phase.
We’ve been there, questioning, “Are we really cut out for this? Are we experienced enough?” The answer is to just start. Today, we’re sharing three strategies that we use for finding deals, particularly suited to our smaller, local market, where we manage all of our own properties.
Here are the three strategies: networking, online platforms, and direct marketing.
Strategy 1 For Finding Your First Multifamily Investment Deal: Online Platforms
How do you find deals online?
It’s really simple. We use MLS platforms that focus on commercial properties, specifically for residential properties with five or more units. The main platforms we use are LoopNet, CoStar, and Crexi. Our favorite is Crexi because it’s user-friendly and you can create a free account. LoopNet and Crexi are both free, while CoStar has a membership fee, which can be quite expensive. However, CoStar provides more detailed information.
Once you sign up, you can filter by area, property type, and price range, and the platform will send you email updates when new properties become available. A tip: check who the listing agent is. If you see multiple listings by the same agent, that’s an indicator they’re active in your market, and you’ll want to reach out to them.
If you’re looking for properties with four or fewer units, connect with a residential real estate agent, as they can help you find those listings.
Strategy 2 For Finding Your First Multifamily Investment Deal: Networking
Networking is your bread and butter. Build relationships with agents and brokers actively working on multifamily deals in your area. Start by getting on their email lists so they’ll send you listings before they hit the MLS. This gives you an advantage in seeing deals before the general market does.
When you reach out to agents, have a clear, written-out criteria list, as we discussed in our second video. This shows brokers that you know what you’re looking for, and they’re more likely to take you seriously.
Another great way to network is by attending property tours for listings. Brokers only make money when they close deals, so attending property tours lets you learn a lot about the process while strengthening your relationships with brokers.
Local meetups are another resource. If you’re in a larger market, you’ll likely find many meetups; in smaller markets, there might be one or two. These events are excellent for meeting other investors, building connections, and possibly pooling resources for deals. If your area has limited options, you can join online investing groups, such as the Jake & Gino program, BiggerPockets, or Michael Blank’s group.
Lastly, connect with property managers. They know what’s happening in the market, the rental rates, and which areas are growing. They’re a fantastic resource, especially if you’re looking to buy a property they might manage one day.
Strategy 3 For Finding Your First Multifamily Investment Deal: Direct Marketing
This is often the hardest strategy but can yield great results. One approach is Direct Mail campaigns. Our local broker helped us pull a list of multifamily property owners with active debt, and we reached out to these owners via email to express our interest. We received a variety of responses, some favorable and others overpriced, but persistence here is key.
The goal is to reach out regularly, putting yourself in front of sellers so that when they’re ready to sell, you’re top of mind. Maybe they’re getting ready to retire, or they’re tired of managing their properties. If you consistently follow up, you’ll be the first person they reach out to when they decide to sell.
Consistency is crucial. Think of it like McDonald’s advertising: they’re always in front of you, so when you finally decide, they’re at the top of your mind.
Another direct marketing method is cold calling, which you can do alongside direct mail or as a standalone strategy. This is all about calling property owners regularly. Even if they’re not interested, consistent follow-up can eventually turn them into leads.
Finally, there’s “driving for dollars.” This involves driving through neighborhoods looking for “For Sale By Owner” properties or those that appear run-down. Properties in a good location but needing TLC could have great potential.
Your Next Steps
Pick one or two of these methods and be consistent. In the beginning, you won’t have all the answers, and your first few calls might feel rough. If a broker asks a question you don’t know, just be honest. Let them know you’re new, and over time, you’ll build both experience and confidence.
Remember, everyone starts at the beginning. The most seasoned business owners and investors all began somewhere.
Join Our Community
We’ll post these strategies in our Facebook group, so if you haven’t joined yet, come join us over here! And stay tuned for video #4, where we’ll show you a quick 10-minute process for deal analysis. See you there!
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