The business of buying apartments is quite competitive…
I’m sure you have probably already discovered that.
We’re all looking for that great off-market deal that no other investor knows about right?
Where are all the deals?
How can one find these off-market deals?
Here’s my favorite strategy that few people talk about and take advantage of:
Networking with property management companies
Property management companies have the inside track and often know of when owners are thinking of selling, so you can get in at the ground floor for any potential opportunities before the owners engage brokers and put their property on the market.
Here’s some scripts to get the ball rolling:
Many of these conversations will be similar and you will discuss the same things over and over, so you will be able to predict what they will say over time and you will soon be able to have these discussions in your sleep!
So don’t be nervous.
To get warmed-up…
You can practice calling in markets that you have no interest in (eg. North Dakota).
Then start with calling property management companies in the markets I recommend here:
The spreadsheet I provide in that blog post will give you a basic idea of what regions you should be shopping in generally speaking.
If you discover a market that is not on this list… It’s all good. These markets are not all inclusive or set in stone.
Start with the basic small talk, introduce yourself.
The conversation will be similar when talking to brokers and property management companies, but brokers will try to qualify you more and the conversation you have will be more challenging.
Call various companies and position yourself as you are working with investors that are looking to buy apartments in that market and you would like to know what the fee (%) is that they would charge to manage an apartment complex.
Be vague… Say that you don’t have any specific property, you are just shopping around and doing your homework.
Additionally, your team is also always looking for deals to buy, so if they hear of anything, please keep you in mind.
The criteria you will tell brokers and pm companies will be the same as outlined in the 2017 strategy.
If you don’t have that, you can get it by clicking here.
Your initial goal is to get from the property management company (or any deal source) the financial information about a potential deal, so you can analyze it.
These are the main items:
- 12-month trailing profit and loss statement
- a current rent roll
- the asking price
You won’t get an OM because there is no broker involved and brokers create those typically.
Feel free to reach out at any point along the way if you need help or have a question about anything at all.
I hope you found this article helpful…
Let me know if you have a deal that you think is viable!