I wish to buy a multi fam. however I am new to the business. would a broker be the best person to guide me

In Buying Property - Asked by Judith J. - Sep 18, 2010
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Answer(s)

Robert B.
Broker/Agent
Brookfield, WI

Find a buyer aget in your market that you can hire to represent you and that person must know multi-families. Look at cap rates of your investment, and returns in addition to how hard a property is to run if it is in a tougher location. A lot of wealth has been lost recently because people can not manage the properties they bought.
Bob Baudo
RE/MAX Realty 100
findbob@wi.rr.com
www.findbob.com

Sep 18, 2010
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Ben R.
Lender/Mortgage Broker
Riverview, FL

I highly suggest you type in the words "commercial multifamily investing training" and see what kind of training programs are out their within your reach. Get thoroughly trained then do a search for commercial real estate advisors in your local area and connect with them for advise on how best to persue your first acquisition.

Sep 19, 2010
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Kathy S.
Broker/Agent
Petaluma, CA

A knowledgeable broker will guide you in the purchase, explain the lingo and the return on investment dollars. S/he will help you figure out what you want! However, a broker is not necessarily the person who will guide you in the management of the property. You'll need to know your landlord-tenant law and make a decision about whether you want to be a manager or hire a property manager. Your accountant can assist in some of this too.

Sep 20, 2010
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Katherine H.
Broker/Agent
San Rafael, CA

A knowledgeable broker in your target market area is the best way to learn about apartment investing. I have been exclusively an apartment broker for 25 years and can say that knowledge of the local rental market (look on Craigslist, visit apartments for rent) and the most recent sales comparables will put you way ahead of the game. It takes time so be patient. Find out what you can expect in rates of return for your market and let your apartment specialist know so they can help you narrow your search!
Katherine J. Higgins
Investment Broker
Bradley Real Estate, Inc.
851 Irwin St. #104
San Rafael, CA 94901
Cell:415-302-7730

Sep 21, 2010
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MOOERS R.
Broker/Agent
Houlton, ME

A Local Hard Working Real Estate Broker, REALTOR Knows The Local Turf, All The Current Properties For Sale With Multiple Units, Rentals. He Also Knows The Background, History Of The Property, The Owner And The Local Community Resources To Fix This, Update That.

Sep 22, 2010
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Brett O.
Broker/Agent
Torrance, CA

You should try to locate an active apartment broker in the specific area you wish to invest. If this is your first investment and you plan to manage the investment yourself you should not aquire anything too far away. If your are going to hire a third party manager then you can go further afield, but then you must also do as much due diligence on that decision as the underlying investment.
A good apartment broker should be able to show you the dynamics of how an apartment investment works on one piece of paper. You need to know the CAP rate, GRM, $ per Square Foot, $ per Unit, Unit Mix, Age of building, Actual lease rents and Actual Expenses, with adjustments of NEW tax and insurance that you will pay at the proposed transaction price. Careful evaluation of income and expenses plus building condition is vital.
All of the above should simultaneously be compared with Sales Comparables & Rent Surveys in the specific market.
In any event, you will always want to find a deal that will earm the same or better than fixed income investment alternatives....otherwise why bother. In other words if you can locate an investment with a 8% cash on cash return, this is better than earing 2-4% on a fixed income investment, and to this the positive leverage of today's low rates you really begin to build wealth. If you borrow 70% of the purchase price at say 6% for 10 yrs. fixed (or better) then you get a positve EXTRA 2% spread on that portion of the investment (if you borrowed 70%) and bought an 8 CAP. Keep in mind you will also benefit from favorable tax treatment via 1031 exchanges as you move up the investment ladder. Good Luck.
So the short answer is an experienced reputable broker willing to work with you.

Sep 22, 2010
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Joe L.
Broker/Agent
Dallas, TX

OK, here's a very basic place to start in deciding if you want to do this. Check out http://bit.ly/incomepropertysurvivalguide . It'll download a PowerPoint presentation that hits some of the pros and cons of investing in multi-family

Sep 27, 2010
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