25 Jul How To Find Your Perfect Multifamily Property
Have you been considering purchasing a multifamily property? Maybe you are a first-time buyer or looking to expand your portfolio to a new sector. Do you wish there was an easy guide on how to find the right property for your specific needs? Something like a “Multifamily Properties for Dummies” that could simplify your buying process? Well, look no further.
Here’s a list of helpful hints and tips to assist you in finding, and purchasing the multifamily property of your dreams.
#1 Understand How Multifamily Properties Work
One of the keys to finding and purchasing a multifamily property is knowing exactly what they are, and how they function. As its name suggests, multifamily is any property with more than one distinct and separate housing units, i.e. multiple families are able to live on one property. This includes, but is not limited to apartments, condos, duplexes, townhomes, student housing, and more.
Multifamily properties are always an investment, and can yield great returns (considering more than 63% of Americans live in multifamily properties) over single family homes or other living arrangements. Understanding the current state of the multifamily sector and keeping up to date with the market will be a huge advantage to finding the perfect property.
#2 Research Location
Location is key. Once you have familiarized yourself with what multifamily properties are all about, think of where you would like to invest. Keep in mind this does not have to be the neighborhood you currently reside in. You will want to find locations that will be desirable for prospective tenants. Take a look at things such as public transportation, walkability, amenities, parking, attractions, school system ratings, and crime rate to determine where you might want to invest.
A simple online search can pull up valuable stats and narrow down your location options. Additionally, you should ask around, or visit potential neighborhoods if possible.
#3 Secure Financing
This may seem like a no-brainer, but be sure you have the financial backing prior to setting your heart on a property. Whether you have a private investment fund, rely on investors, crowdfunding or a loan, make sure you have the budget to purchase a property. If acquiring a loan or line of credit looks like your best option and you don’t have a specific lender in mind, make sure to compare what each one offers. Real estate brokers can also make valuable recommendations on local lenders and financial institutions based on your situation and investment goals.
#4 Consult With A Professional
Speaking of real estate brokers, consulting with one can make all the difference. A professional, knowledgeable, trusted broker can make all the difference when finding and purchasing your multifamily property. They have years of valuable experience on hand and your best interest at heart. As the Multifamily Specialist here at Elifin, I would love to help you compare property values, access listings, and answer regionally specific questions.
Brokers know the market they work in and can guide you to make a decision that will often help you get better ROI in the future. Their negotiating experience will help you get the best deal possible and, of course, they will help guide you through every step of the buying process, from finding the property to closing.
Finding the perfect multifamily property for your needs is not as daunting as it sounds. By utilizing these tips doing your research, you will be able to ensure the property you eventually purchase is a great match. If you have any questions or would like to expand on any of the points mentioned above, please email me at email@example.com or give me a call at 800-895-9329.