Have you ever wanted to be a power player in real estate? Maybe you’ve been someone that likes multifamily residency as a long-term strategy for growing wealth. Maybe you agree as well with the idea that there are benefits to this. however, there is nothing wrong with starting in a duplex and then working towards bigger. With this, you should definitely start down. If you make the jump from single-family to multifamily, you’ll realize immediately that it can sometimes change your life. But maybe you want to go to multifamily homes, but you don’t know how to begin.
Lots of times, people struggle because they either don’t have the funds, they don’t have the investors needed for that equity, they don’t have the credibility with brokers or multifamily sellers since it’s a vicious market, you may not have millions in liquidy or net worth just to quality, you may have a life and you don’t have the time to devote or this, or you are someone who hasn’t understood the multifamily insider information yet.
But, if you’re looking to get into it, sometimes being a multifamily deal finder is the way to go. How do you get on this though? Well, you’re about to find out.
If you’re someone that knows of multifamily assets that are for sale, and maybe you can convince the owners to save some money by getting them in touch with a buyer.
Or maybe you know people who are looking for deals, and if they would give you a spot in the partnership, you can refer a deal. There are lots of syndicators or sponsors out there.
You may also know some brokers too, and there are commercial multifamily brokers that are often looking at deals that are too small for them to take to the market, and you may get these deals off market, that you can pass to a syndicator of choices.
So how do you do this. well, you first should look at the criteria and see what they’re looking for. You will want to make sure that when you’re a multifamily deal finder, you only send them the most relevant of deals.
You should analyze each deal yourself, look at the pros and cons, plus the financial aspects of this, and have it all set up in a few paragraphs. You should explain why this is a good deal, and any sorts of pitfalls that might be there. You should make sure to look at this, since it does add value to the buyers as well, and it will cause you to take it more seriously.
You should also negotiate the ownership share before you bring in the deals. The syndicator will give you a piece of ownership for the introduction, and it’s best if you make sure that you have all of this worked out so that people don’t get upset about this, and to prevent legal battles.
You should also not take commissions. You don’t want to cross legal lines that go into the area of real estate brokers. If you’re not licensed, you shouldn’t take a commission. In essence, you’re a part of the buying team, and you should ask for a piece of the ownership since it’s actually better this way.
You should also use all of this as a learning process. Actually analyzing, paying attention, looking at closing, lending, asset management, and many other details are actually training opportunities so that you will be able to use to learn about the business that you’re utilizing, and allow you to prepare for when you do your own deals.
Finally, get it on your resume. If you have been doing this, you want to make sure that it’s on there, because if you have a good track record you can boost your credibility of this, and it will give you a better chance with investors.
For many, being a finder of these deals is honestly better in many cases than being a broker or any of that. It’s quite nice, and it’s something to try out if you’re looking to get into this work.