For savvy investors looking to get ahead of the pack, multifamily properties are looking pretty appetizing right now. But how do you home in on the biggest discounts and lock in returns you can brag about?
Why Multifamily Rules
Multifamily real estate investments are hot right now. Stock and bond investors are fed up and looking for a better option and ex-single family investors are upping their game as they jump back into the new, rising housing market. Why?
Perhaps one of the biggest reasons multifamily is so attractive right now is rates. Rock bottom mortgage interest rates offer sweet leverage than can help investors wield big numbers and gains. Best of all, when buying good-sized multifamily investment properties this means access to non-recourse loans, allowing investors to kiss personal risk goodbye.
Advanced investors also recognize that multifamily means a lower ‘cost per door’ and thus a better ROI. They are far easier and more economical to manage than single- families and improvement costs boast superior returns and enable earned equity to be created regardless of market fluctuations.
Why Neither Your Realtor nor Craigslist Can Help You Get the Best Deals
Private multifamily apartment building owners are unfortunately a poor source for appealing deals today. Those who have gotten in the last couple years know they are on to a good thing with rents rising and equity appreciation on the way. Aging owners who have equity and are interested in cashing out while there is a big interest from buyers are all too often pumped up by real estate agents and asking far too much. Either you have 6% plus realtor commissions tacked on top, or owners are just being unrealistic. Though there have been a few news stories recently about potentially foolish investors getting carried away on the new speculation train and paying full price. Some people will never learn, which leaves banks with distressed multifamily properties, non-performing loans and REOs.
Do You Know Who is Holding the Most Distressed Multifamily REO?
More importantly do you know who is holding a lot of non-performing multifamily loans and who most other investors are failing to approach, leaving them highly motivated to sell and at large discounts?
Here are a few of the top 20 holders of distressed multifamily loans and properties you may not have thought of:
- BMO Harris Bank
- Waterstone Bank
- Intervest National Bank
- Republic Bank of Chicago
- California Bank & Trust
How to Know Who is Motivated to Sell Multifamily REO (No Cyber Stalking Required)
By tracking bank data, investors can quickly assess who is hurting the most, who has been selling multifamily REO quietly and, with the right software, exactly who to contact to hammer out a tasty deal of your own.
What if you could instantly identify a bank who took a $77 million hit on REOs recently, has recently seen an almost $50 million jump of non-performing loans turning into REOs on its books, and get the contact of the key decision makers right now to start negotiating?
You could if you had BankProspector!