Are you ready to take your multifamily investments to the next level?
Are you ready to dominate the real estate market, so you can potentially:
- Create passive income…
- Increase cash flow…
- And build generational wealth?
If you want to master the art of real estate investing, you need to know how to find investment property.
With the strategies I’m going to show you today…
You could easily rise above the competition…
And find rental properties in the housing market that could truly change your life.
To all real estate investors out there, it’s time to stop settling for crappy deals…
And start going after the deals that could make you rich.
So in this article, I will discuss:
- The criteria you need to look for in a rental property to potentially maximize your success…
- How to find a great potential investment property…
- 6 methods to tap into commercial real estate brokers, online marketplaces, and your network
- My free ‘Resource List for Finding Deals’
As I’ve said repeatedly last year…
2023 will be one of the GREATEST real estate opportunities in our lifetimes…
And this window of opportunity will likely close next year.
So it’s our time to take massive action and dominate the competition NOW.
5 Reasons You Should Learn How to Find a Great Investment Property…
1. You have MORE control over the potential outcomes
If you’re just starting out, you can learn the multifamily game with the help of:
- A senior partner on your deals
- An experienced mentor
- Licensed professionals, such as a real estate attorney
But you should still learn how to call the shots…
Because at the end of the day, you’re the one responsible for YOUR financial future.
2. Your unique experience, network, and location are VALUABLE
You have the opportunity to find the best deals in your housing market that others haven’t discovered yet.
So use your one-of-a-kind circumstances to your advantage.
3. You’ll gain a chance to build relationships in the multifamily game
Multifamily is not a solo sport. It’s ALL about networking.
Your relationships with sellers, brokers, lenders, and property managers are deeply important.
These connections can lead to more investment opportunities…
And help you develop a stronger reputation in the industry.
4. You could align your real estate investing journey to your BIGGER purpose in life
When you learn how to find investment properties…
You can create plans for each rental property that align CLOSELY with your personal and financial goals.
Whether it’s taking care of your children and your children’s children…
Or contributing to your favorite charities long after you’re gone…
No one knows your “Why” better than you do…
And this will give your investments a deeper meaning and purpose.
5. You could enjoy more FLEXIBILITY and CONFIDENCE
Regardless of market conditions, you’ll be learning to hone your property investing skills…
Whether it’s practicing good judgment, underwriting deals, or doing your due diligence…
By being less dependent on others to find investment properties for you…
You can readily adapt to changing market conditions…
And take advantage of new opportunities with confidence.
What Do I Look for in a Good Investment Property?
1. Location
I would invest in great properties in great locations, in great housing markets.
This means places with strong job growth, low crime, good schools, and great amenities.
Because properties in great locations also tend to appreciate in value over time…
And tend to attract tenants more easily.
2. Rental income & cash flow
These are KEY indicators of a rental property’s profit potential.
I would do some napkin underwriting to study the property.
This means analyzing the current rental income, operating expenses, and potential ROI…
And if the deal doesn’t make sense, I move on to the next.
3. Unit mix
I would look at properties with a mix of studio, one-bedroom, and two-bedroom units.
This could make a rental property more attractive to a wider range of tenants…
Which in turn could reduce vacancy rates.
4. Condition & age of property
I always ask for the year in which the rental property was built.
This is important because newer properties typically require less rehab and maintenance…
While older properties may need major renovations and upkeep.
All this might affect the amount of positive cash flow I could gain from the property.
5. Rent control laws
I would research the laws of the area I’m investing in.
Some areas have regulations that are not in the best interests of investors like me.
Many real estate investors who bought rental property in such areas suffered during the height of the pandemic.
These laws may also have a significant impact on the rental property’s income and return on investment.
6. Amenities
I would look for attractive amenities in my target housing market.
These could include on-site laundry, a swimming pool, a great gym, or a clubhouse.
These would make the property an attractive place for tenants to want to live in…
And potentially increasing rental demand for my rental investment property.
7. Value-add opportunities (only if necessary)
This means looking for opportunities to increase rent…
Which is usually achieved through renovations or improving the property.
I wouldn’t go overboard with this one.
There are very simple ways to value-add to a property…
Such as power-washing the property, improving landscaping, and repainting the building.
These are just a few examples that don’t cost much…
And don’t eat too much into my potential cash flow.
8. Close to transportation and a great job market
I would look for properties in rental markets near major roads, public transportation, and job centers with low unemployment rates.
This also means looking at job market data and long-term trends that perform better than the national average.
Such a location would likely attract more tenants to the market…
And it also makes it more convenient for them to get to work from my property.
9. Demographics
This could tell me what kind of tenants I might attract to my property… and what their needs could be.
It also tells me if the population in the area is growing…
And whether it is likely to sustain demand for my property in the future.
As I’ve mentioned before, some major cities like New York or Chicago are shrinking in terms of population…
So don’t assume they’re automatically great investments.
In terms of consistent population growth, some of the best cities might include Sun Belt cities like Atlanta, Georgia… Tampa, Florida… or Dallas, Texas.
Also, due to housing affordability issues in America and high mortgage rates at the moment…
More and more people are turning away from single-family homes and becoming renters.
So, I would also look for demographics of people who are more likely to rent than buy, due to high home prices in the area.
One way to do this is to compare average home prices with average market rents in the area.
10. Exit strategy
This will dictate how I could eventually sell the property, and the returns I hope to achieve in the future.
This could also determine how I want my property managers to operate and take care of the property.
I always ensure that my exit strategy is closely aligned with my long-term investment goals.
Remember, real estate is a long-term game.
Many people only think about finding deals, and never consider how they’re going to exit them.
Before we continue…
It’s important to keep in mind that this is not an exhaustive list of criteria.
No single criteria could guarantee a successful investment…
And it’s essential to adapt your criteria to your unique personal circumstances and target market.
6 Methods for Finding Investment Property
Now, let’s talk about HOW exactly I would go about finding investment properties.
This is a question I get asked a LOT.
I think people see the size of multifamily deals and get intimidated…
So they overlook the many opportunities out there to find GREAT deals at their doorstep.
If you’re one of these people – don’t worry, I got your back.
Let’s go over 6 ways you can find GREAT multifamily investment properties in the U.S.
1. Network, Network, Network
I would waste NO time in building relationships with:
- Other real estate investors…
- Brokers…
- Lenders…
- Industry professionals…
- And basically anyone I can talk to deals about.
This can be a great way to find multifamily properties that are off-market or not yet listed…
And to access valuable industry information that’s unavailable to the public.
Even better, it’s a chance to learn from experienced investors.
Here are some ways I would network:
- Join local real estate investment clubs
- Attend conferences and events
- Connect with other investors and potential partners on social media platforms
- Create my own real estate investing community
Not sure where to look?
I will share my free resource list for finding investment properties at the end of this article.
2. Work with Commercial Real Estate Brokers
Like I always tell my students…
If you’re looking at a deal and you CAN’T afford to work with a broker…
Then the deal doesn’t make sense.
Trying to buy the deal without a commercial broker is a pure rookie mistake.
Look, the broker is your friend in this game.
I use a broker on every deal, and I prefer to only use the listing broker.
See, I’ve learned from experience that if I don’t use a broker…
I’ll never get the best deal…
Because the best deals just aren’t sitting on online websites.
Most top brokers already have in mind investors they KNOW and trust when they find great deals…
So you should be on those brokers’ radars if you want to find great properties.
Brokers also help me create a buffer between me and the seller.
They play a huge role in helping me negotiate the buy or the sell…
And I always hope the broker makes a bunch of money on the deal.
If I am going to make $60 million on a project…
I don’t worry about paying a broker $250,000 because this person helps me secure the deal.
So I would pay the broker well, know them all, and make sure they like me.
Here’s how I would go about working with commercial real estate brokers:
Contact the top commercial real estate brokers in my target market
I would research the top commercial real estate brokers in my target market.
They can be difficult to reach by phone…
So when I call them, I make sure to show conviction and confidence…
And I start a conversation about any multifamily properties they may have available or coming soon.
Remember to always, ALWAYS follow up after each call.
Utilize the broker’s knowledge and resources
A good broker should have a deep understanding of the real estate market in the area I’m interested in.
They can also provide valuable insights and advice on negotiating deals and financing options.
So don’t be afraid to ask them questions.
Attend commercial real estate events and trade shows
This can be a great way to meet brokers and learn about new investment opportunities.
Many brokers will have information about their current listings at these events.
They might even share details of upcoming deals with you.
Maintain a good relationship with the broker
I would always show the broker I’m a serious investor.
It’s important to remember that these brokers are typically paid through commissions.
Every phone call should be a valuable conversation and should NOT waste anyone’s time.
3. Buy Directly from the Owner
In my previous articles, I mentioned how the down cycle is creating tons of great opportunities right now.
I talked about looking for properties where the owner is tired…
Where they probably paid off their properties years ago.
These owners don’t want to go through yet another down cycle in the real estate market…
And could very well want someone to take their properties off their hands.
So here are some ways I would reach out to owners if I were you:
Direct mail marketing
This means sending direct mail to property owners in a specific area…
Which can be an effective way to find multifamily properties that aren’t on the market yet.
I would target neighborhoods or areas that I’m interested in…
And then make a compelling offer to the property owner.
Online classifieds
I could check online classifieds such as Craigslist and Facebook marketplaces.
These platforms are often used by private individuals and small investors who are looking to sell or lease their properties.
That said, make sure to do TONS of due diligence, as these sellers may have less experience.*
*Remember, real estate investing can be risky. See full disclaimer below.
Driving for dollars
This means physically driving around a specific area and taking note of great properties there.
This method might help me find properties that are not yet on the market…
And then I could reach out to the owners to express my interest in buying the property.
Referrals
I could also talk to family, friends, or business associates to see if they know of any multifamily property owners looking to sell.
Or I might offer a referral fee to the person who helped me make the connection.
Other things to note:
It’s important to establish a good working relationship with the owner and ensure that our interests are in alignment.
It’s also crucial to do proper research and due diligence when investing in properties directly from the owner.
I would make sure to confirm the property’s ownership, do my underwriting, and inspect the property thoroughly.
4. Use Online Marketplaces & Multiple Listing Services (MLS)
There are a number of online marketplaces where I can find multifamily properties available for investment.
A good property search platform would provide detailed information and metrics on the properties.
This includes real estate prices, financials, floor plans, and photos.
It would also have tools that allow me to filter properties based on my specific investment criteria.
I would invest in these platforms to get as much intel on my deals and target markets as possible.
That said, there are free resources you can use, such as Zillow or LoopNet.
However, when you call a broker… don’t even mention you saw it on LoopNet, or you will lose credibility.
I would also check out Multiple Listing Services (MLS).
These are services where real estate agents list properties available for sale.
An MLS gives me access to a wider range of properties while saving time and effort.
It also gives me more information to use when negotiating prices and terms…
Which could improve my negotiating power when closing a deal.
Here are some ways to use an MLS:
- Filter properties by location, type, number of units, property prices, and cash-on-cash returns.
- View the history of the property, such as how long it has been on the market, the number of offers received, and the current rental rate.
- Identify properties with the highest potential returns.
- Research and gain insights into market trends, such as how property values change over time and occupancy rates.
- Compare home values and housing prices with average market rent.
- Compare properties in terms of features, amenities, location, and more.
- Schedule showings for potential investment properties.
- Network with real estate agents and other professionals in the industry.
5. Check Out Local Tax Auctions
A tax auction is when a local government holds an auction to sell off properties that have unpaid property taxes.
This could provide an opportunity to find undervalued multifamily properties.
That said, be wary.
These properties probably have not been maintained…
And they are often sold at a fraction of the market value.
a deal that is easy to buy… is a deal that’ll likely be harder to exit.
If no one loved the deal before, why would they love it when you try to sell?
So I would take special care to research these properties.
They may also have additional liens or other issues that could affect the value.
Plus, I would be hyper-aware of the terms of the auction and any applicable requirements…
Such as paying any delinquent taxes or other fees that may be due.
6. Work with Property Management Companies
I would develop great relationships with property management companies in each of my target markets.
Here’s why…
First, they are familiar with local markets, which can give me an advantage when searching for the right property.
Next, they could help me:
- Determine the best location for my investment…
- Provide market analysis…
- And recommend properties that best fit my goals.
Third, they could be the third party who underwrites my deal.
When it comes to underwriting deals, I always have as many different parties underwriting my deal as possible.
It’s also in their best interest to help me out as they could win a contract to manage my property in the future.
Finally, they can also help me make sure the property is compliant with local regulations… thus helping to protect the investment.
With the help of property management companies, I can enjoy the benefits of investing in multifamily real estate…
While minimizing the hassle of finding and managing the property myself.
***
Why You CANNOT Overlook THIS Real Estate Investing Skill
Investing in multifamily properties could be a game-changer for you…
Especially if you aim to create passive income, increase cash flow, and build generational wealth…
But it’s not just about knowing how to buy rental property – it’s about the whole process…
From finding the right properties… to evaluating them… to managing them and ultimately cashing out in the future.
It’s about taking massive action to achieve your goals.
Now that I’ve laid out a blueprint for you, take action today.
Here’s a free Resource List for finding multifamily deals in the U.S.
I hope you find this useful…
And I hope you will keep working towards 10X-ing your potential as a multifamily investor.
Be Great,
Grant Cardone
*Disclaimer: This content is intended to be used for educational and informational purposes only. Individual results may vary. You should perform your own due diligence and seek the advice from a professional to verify any information on our website or materials that you are relying upon if you choose to make an investment or business decision. Investment, real estate, and business involve great risk and there is no guarantee of performance or results.
We are not attorneys, investment advisers, accountants, tax professionals or financial advisers and any of the content presented should not be taken as professional advice. We recommend seeking the advice of a financial professional before you invest, and we accept no liability whatsoever for any loss or damage you may incur.
