Finding Off Market Small Multifamily Properties - YouTube

Hey YouTube, we are going to answer some of your  questions today or maybe just one or two we'll see  

how far we get how much time we have. If you have  questions you can email them to me April at lazy  

girl Rei calm. Today I'm most excited to  answer a question about multifamily mailings  

because I love small multifamily properties and  someone sent me an amazing question about that.  

My name is April Crossley I'm a real estate  investor in Berks County, Pennsylvania.  

I flip houses here we do do some wholesaling, we  buy small multifamily properties, we do a little  

bit of private lending, and we're looking for  bigger stuff. So bigger multifamily buildings,  

large mobile, home parks, storage facility, stuff  like that. So if you're selling or you know anyone  

selling or you want to team up on something in  your area, and be boots on the ground for me,  

let me know you can reach me April at lazy girl  rei.com. But today, I'm going to tell you about  

an excellent multifamily question that I got from  one of our viewers. So make sure you subscribe,  

because people always have great Well, not always  great comments. Some of y'all are a little bit  

harsh. But mostly great comments and questions  that they drop below. And someone actually emailed  

me this question, and I love it. Because  people will say to me, April, how do I find  

small multifamily two units, four units, six  units, and I'm gonna have a different answer  

for you than what real estate agents gonna have.  How do I know this? Because most of the people  

that I know that have been looking have come  to me because they've been looking with a real  

estate agent for two years, or three years, or  four years. To find a small multifamily property,  

that is a long time to wait to house hack  a two unit or a three unit or a four unit.  

And I always tell them, Okay, first of all,  you need to stop looking with an agent,  

because the market is hot. And it's going to be  very far and few between, some people might get  

pocket listings, but it's going to be very far and  few between, you're gonna find something small,  

like a two unit three unit for unit that you're  going to find on the market with your agent,  

you're going to be competing with all these other  offers, it's going to be ridiculous, just start  

looking for off market stuff. So let's talk about  how you buy. So how you find it kind of depends on  

how you buy. So say you are Person A, if you're  going to house hack, you're going to live in it,  

you're pre qualified pre qualified with a mortgage  company to purchase with a loan, which means it's  

going to take you like six to eight weeks to  purchase that house and you're going to live  

in it. So you're going to live in one unit rent  out the other route, the other three, whatever  

you're buying a two unit three unit for unit. So  what you're gonna do is you're going to have your  

agent, pull a list of all the small multifamily  owners in your area. So all the people that own  

two units, three units, four units, five units  in your area, have them pull a list of all those,  

then what you're going to do is you're  going to write a letter to those owners,  

and you're going to say, my name is John Smith,  or whatever your name is. Avi don't put John Smith  

is not John Smith, my name is whatever. And I  am pre qualified put pre qualified and bold,  

pre qualified to purchase a  two unit in Berks County,  

I've been looking for a while and haven't found  one on the market, I would love to talk to you,  

if you're interested in selling, so you want  to let them know you're pre qualified upfront.  

PS, feel free to ask me for my pre qualification  letter, I would love to share it with you because  

they're gonna want to know you're actually  pre qualified. So don't lie about that. Okay,  

it's super annoying when people say they're pre  qualified, but they're not really pre qualified,  

okay? Or you might be the other type of small  multifamily owner with no intention of living in  

it. And you're either going to buy it cash for  below market value and drive rents, but you're  

still looking for two units, three units or four  units. So what you're going to do is same thing,  

have an agent pool a list for you of all the  owners of two units, three units and four units  

from public records, and give you their names  and mailing addresses. And I know some of you  

are agents, I know some of you're thinking I'm  never going to be able to find an agent to do  

that for me, or that's just not gonna happen, or  that's illegal and I shouldn't do that. So go to  

your county public records office, you might  be able to get it from there too. Other people  

are gonna be thinking what about list source  like list source com or another list broker?  

It's very difficult in most areas. I know in my  area, we can't pull lists of small multifamily  

owners from list source, okay, it has to come  from our public records data. So either directly  

from a list we pull from the courthouse or a  list We're pulling from an agent's accessing  

from public records, which is part of like our  MLS. Okay? So pulling a list one of those two ways  

and sending them a letter and just saying, Hey, my  name is so and so I live in the area, I buy small  

multifamily buildings in the area. I'm a mom and  pop owner. If you're ever thinking of selling, I  

would love to hear from you. Short, simple and to  the point don't write your life out in a letter.  

They're never going to read it ever. Never. I  get a long letter goes in the trash. Okay, so I'm  

going to tell you the magical line, the magical  line to stick it in your letter. When you're  

looking for small multifamily buildings, you're  going to say something Something like this. He  

is tired of tenants question mark, but don't want  to sell your building because you're afraid of  

losing the income that you get from the property.  Question Mark asked me how you can still sell your  

building and keep making income from it. What did  I just do there? There's a lot of landlords that  

are small mom and pop that own two units and four  units and six units. And they don't want to lose  

the income from that property. But they also don't  enjoy being a landlord. Because let's be honest,  

it's not that fun. Okay. So they're burnout,  and they're tired, but they still need the  

income or like the income from the property. So  what did I do there? I just set them up to open  

them up for discussion for seller financing, so  intrigued them enough that they call me and say,  

Hey, April, what does this mean that you will buy  my property? And I'll still make income from it,  

even though I don't own it anymore? Do I have to  pay the taxes? Are you really buying it, Mike? No,  

I'm actually buying it. But and then I roll  into a whole discussion about seller financing.  

Do you mind if I ask you a few questions about the  property to see if you're a fit for this program,  

I want to see if you are qualified in a fit for  my program where you still make money off of the  

building. There's a bunch of different things  you can do. But seller financing is my favorite.  

Because a lot of mom and pop landlords don't owe  anything on the building. They either bought it  

cash or they inherited it. Or they've just had  it for so long, then it's already paid off.  

So they're in a great position to sell  or finance. So their seller finance,  

you own it, you're responsible for  everything. They become the mortgage company,  

you're making payments to them. They're  still making income from the building,  

we have a whole bunch of seller finance videos.  And if you guys want something more in depth  

after you like and subscribe and go back  and watch the other solver finance videos,  

email me April lazy girl rei.com. And I will send  you like some more information on seller finance.  

Well, I won't send it to you. I will actually  do a YouTube video on it so we can share it  

with everybody in the audience. Okay. The other  way I find small multifamily, other than asking  

an agent to pool list for me or pulling a list  from the courthouse of Everyone that owns small  

multifamily is to go through the small multifamily  expired listings. So anytime a multifamily expires  

in the market, I send them a note card in the  mail. Hey, I noticed your building expired.  

I'm looking for buildings in the area, I would  love to chat with you. If you're still interested  

in selling name, phone number, call me. So we're  really finding these small multifamily buildings  

off market. So in the past few years, I've had  two people come to me that were looking for over  

two years to house hack a two unit or a three  unit with an agent looking for something on the  

market and couldn't find it. And we put both  of these strategies into place and boom, they  

both bought buildings just like that. So sometimes  I know a little bit about what I'm talking about,  

despite some of your mean comments. I'm  just kidding. You guys are never mean. Um,  

so that's the first question was about  multifamily. The second question someone sent me  

was about a property that was basically a jungle.  And it was worth I forget how much maybe like  

150 or $200,000. And they felt like making an  offer $5,000 was generous. And they were kind  

of just asking me, would you buy a property  like this? And my answer is this. There are  

some properties that are not worth buying. And  that's okay, if the numbers don't make sense,  

and you can't make a profit. And it's I don't  care if it's a $200,000 property prop $200,000  

property flew late at night. Can you tell $200,000  property and it means a ton of work. If you're not  

going to make a significant amount of profit on  it. You shouldn't be buying that property. And  

if you feel like $5,000 is too generous As to  generous just don't make them an offer or make  

them an offer that you think makes sense if that's  $5 Offer them $5 We literally just had one of our  

buyers buy a house for $1 It was a wholesale deal.  They bought it for $1 So don't feel like you have  

to buy a property sometimes some of them the  more work than what they're worth all fixed up.  

That's just the way the cookie crumbles. So,  I hope this helps you guys send more of your  

questions to me [email protected] and I will  answer them on YouTube I love when you guys send  

me questions. I love it. You can check out more on  our Instagram April Crossley on our Facebook page,  

lazy girl real estate investing, like subscribe  to our channel and share the video if you love  

it. And we will see you guys next week. Transcribed by https://otter.ai