There are On Market Apartment Deals EVERYWHERE! Stop Missing Out - How to Win on Market Deals

You are likely like the majority of people who are not finding on-market deals, or you're finding that all the deals on market in the places that you want to buy don't work. You're looking at it and you're like, this doesn't cash flow, this deal doesn't make sense. This is something I hear every day. This is one of the main places people get stuck. Why is multifamily strategy and why am I buying all these deals on market and how are they making so much money? I'm going to share exactly how you negotiate these and how you get a pipeline for the already listed properties and why I'm still buying properties today. In multiple states, multiple markets, and this strategy has kept working year over year over year over year. I'm going to share exactly how we do this on this video today. Oh, by the way, welcome back to the channel. My name's Christian Osgood. If you have not followed the channel yet, please subscribe below because we share everything on how to buy deals low to no money down. In fact, I started with almost no money, about $10,000 to my name, and I bought millions and millions of dollars of real estate. And I was able to do it because I got these principles down and I was fortunate enough to get these down early. Now on this channel, we talk a lot about buying direct to owner. This is how you find them on market. And this is where I find about 50% of my deals. Now, to be fair, my most creative deals and some of my best deals of all time have been direct to owner. This doesn't replace that. But if you want to dive into your market right now, look at listed deals, and within the next 90 days, start buying your next apartment building, this is how you're going to do it. So you can choose any site. LoopNet, CREXi are the two biggest for currently listed properties. In this case, I pulled a building here in Dublin, Texas. Now, this is just south of Stephenville, Texas, where I invest heavily. So this isn't a market that I've already invested in. I haven't looked at a whole bunch of other deals in this market. I chose a deal at random that looked somewhat interesting to me. Now, what I'm looking for is not, is it a great deal? Is it a great price? Has it been listed? There's so many lists that people try to qualify for you. That is not how the game is played. Here's where you start. Look at the darn pictures. Does it look cool? Like seriously, that is the first thing I'm looking at the deal. Is this a building that's interesting? I'm looking at it. Okay. It looks like a newer roof, centrally located to the town. I do like that. Kind of has a cool vibe. It's also a little bit dated looking. So I'm looking through, I'm like, okay, am I interested in owning this? I do like the stone. Holy crap. That looks nice on the inside. They currently want $700,000. This is currently mixed use. So it could be multifamily, office, retail, hotel. You have a very flexible zoning here. Now, where most people will look at this, they go, okay, I'm pouring through the deal. I'm looking through, obviously there's some gorgeous units in here, also a little bit dated, but this is very nice real estate for very low price. So I'm like, okay, question number one, can we figure out what's wrong with this thing other than some ugly wallpaper and some silly finishes? This is an awful lot of real estate for not a lot of money. In fact, we're looking at almost 17,000 square feet of real estate. If it all looks like this, I'd be stoked. But we get into it and we go, okay, so here's another unit that's not nearly as nice. Oh, what's going on with all these other units? We got storage, we got unfinished ceilings and unfinished bathroom. Here's your problem. The building is not fully built. It's ripped down to the studs in multiple areas. Do we want to buy a project? I don't know. Here's what your next step is. If you're me and I'm looking at this, I'm like, okay, looks like there's a lot going on here. It's been on market for a year, essentially been on market for a year. I'm going to call the broker. This is what you do, Mr. Eric Kane. By the way, if anyone buys this deal, my management company is 20 minutes north of this. I will manage this for you if someone else buys this. I'm in the middle of another project. Otherwise, dibs. This is a cool property. So you would call the broker. Now, I'm not going to call him right now because I'm filming this late at night. That being said, if you want to see me do a live call with a broker on deals just like this, I will link a video below where I do a full analysis of a deal, cold call the broker, go through the entire exchange. But I will give you a recap of what you're going to do on this. So again, if you want to see a live version of this, I absolutely do that. And I'll link one of the examples below here for a video that I think went really well. But what I would do in this case is I would call Mr. Eric Hayden. In fact, I did this yesterday before I chose this example of a deal. Guess what he said? He said, hey, there's enough room in this building to potentially have 25 multifamily units. Now, right now, There's a few multifamily renters. It's an old hotel. It's mixed use. My number one question, could this be used as only multifamily? That's my specialty. He seems to think the city would be interested. Okay. 25 units. There's currently 2 units completely finished and leased. If we can get creative on the finance here, and that's a huge if, I didn't ask yet, at $700,000, if I have to do the capital raise to finish this building, I am going to get this for an unbelievable steal. Now, of course, we're going to have a very detailed inspection and we're going to make sure that contractors are in here. We have all of our quotes done. We want to make sure the budget is the budget. But at first look, 25 units, 2 already 100% completed, $700,000. I could spend about a million dollars on this building and it will still be a fantastic deal. Now the question becomes, Will the city let me run it 100% multifamily? And is $1 million or less the budget that I need to get a 25-unit building in the middle of downtown? If that is the case, I'm interested. Now, there's one more piece to this, and this is why we buy so many of these deals. If I just bought this project and it bled money every month, I now can't go and do cool new projects because every time I'm buying real estate, my income goes down. You're limited on how much you can buy. We got to figure out how do you cash flow a building with only 2 tenants. The answer on this one, they would probably have to do a short-term seller finance note while I was doing the construction, and we would have to have the payments deferred to the end so I can pay them out of the finished project. But there's not going to be any mortgage payments through the life of the loan. Now, if they were open to this sort of offer where we have a little teeny tweak, if I have no loan payments, I have a couple tenants in there, I can probably just about break even on my hold cost here. It's going to be low to no money per month to hold the building. We raise the construction capital, you get to build a building. Now, is every deal online a massive construction project? No, I just clicked on this one and it looked fun. This took me about 45 seconds online. The deal is interesting. The building's interesting to me. The location's very interesting to me. I have some efficiencies because of where I already own in this market, and I have reason to believe we might be able to do some negotiation. Because the sellers have been trying to sell this for a long period of time. If this is the type of deal that interested you, awesome, you can go buy it. If you want something more passive, do the same project. In fact, I was looking in Weatherford, Texas recently. There's a couple deals that had some potential. This is just north of Stephenville. Let's check it out. Dive straight in Weatherford, Texas. I'm looking for multifamily 'cause I'm a multifamily guy. Same principle applies for everything. I own some mixed use and retail as well. I could do the same thing here. All right. I ran into these recently. So these are both very, very, very similar properties. So I'll click on one of these, the same owner. So you have these decent studios. They're small studio, metal roof, corrugated steel siding over brick. This thing's basically indestructible building. The windows look new, the doors look new. There's a little dog park in the back. They have some cute little signage. This is the definition of looks like pretty nice entry-level housing, secure mailboxes, covered areas.. There's a dog area, paved parking, a little picnic area. Is this fancy? Absolutely not. But this is probably excellent entry-level housing. Take a look inside. I would spice up these units 'cause these are boring even for me, and I like simple. This is boring. I'd redo those floors. The walls are just fine. Kitchen's actually fine for what it is. I don't love that it cuts in the middle of the room, but it works. These are simple little studios. They have nice countertops. Nice. I mean, everything's nice in here. I just hate the flooring. I think what I would do on the interiors is change the floors. We have mini splits up here. This is a pretty good deal. Price per unit. So it's been on market for 40 days. They want $1.6 million. How many units are we looking at here? 15 units. Now, in my experience in Weatherford, anything like this around $100,000 a door is probably right. So we're probably mildly overpriced, but we're within the ballpark. If you could pick this up for $1.45 million, maybe $1.5 million, This would likely be a very good deal. Now, do we know everything about the building yet? No, we could probably view the flyer and get some more financials. The next step is you just call the darn broker and you ask some questions. Now, I've talked to this broker before. He actually lists a lot in this area. So if you call him, he may have other listings for you as well. This is someone who knows how to do deals. You pick up the darn phone at this point. There's enough here. What too many people do and what I hope you're not doing, but now you're not going to do it anymore. They look at this and go, hmm, $1,650,000. Hmm, it's been listed fairly recently. It's a little bit more than I'm looking to pay for this apartment building. Onto the next. Pick up the darn phone and have a conversation. Your conversation flow will have 5 pieces that go like this. First of all, is the property still available? Nothing is worse than entering the conversation and having to be like, oh, I'm not the one listing it, or, oh, this property, yeah, just went under contract. All your momentum's gone at that point. Is it still available? Tell me a little bit about the property. I saw it was listed 40 days ago. How are things going thus far? Get an open-ended question, get the broker to do their job, get 'em to start selling to you. That's going to make them comfortable. Let 'em tell you about the property and just kind of sit back and let 'em do their thing. You're building rapport by letting them sell to you. Let them do the talking. Ask the open-ended question, sit back, relax. As you're going through, you might have some more pointed questions. This shows interest and also, by the way, indicates some level of intelligence. You go through and you ask a few pointed questions. Hey, I noticed the layout of these is a little bit wonky. They are small units. How has occupancy been and do you find that these lease up pretty quick in this area? Like ask something specific. The property looks really nice. It looks like the owners actually takes really good care of this. Are there any maintenance issues that you are aware of? Because from the pictures, this thing actually looks fantastic. Let them know this is exactly the type of stuff you want to own. And then ask them how you're going to finance it. Hey, how do you think the bank would look at this property? That question right there, you're asking about deferred maintenance, you're asking about the bookkeeping, you're asking about the price. If they say, hey, the bank's going to want a high down payment, uh-oh, there's probably a problem here. Is it overpriced? Do they not have good bookkeeping? Is there a major maintenance thing that needs to happen that's going to prevent financing? It's good to know. If there is a problem, you can dive into creative finance. You're positioning yourself as the most obvious buyer. Now, even if you don't buy this property, here's the magic. You actually went through a very high-quality conversation with them. I would give them an offer where it works for you. So if I got through this and I knew, you know, with what he gave me, $1,450,000 is going to work, I'd say, hey, I love the deal. This is exactly what I want to buy based on the fact that the owner, let's say they just wanted a certain price based on the fact that they want price and they can't get creative at all. That's totally fine. This deal starts to work for me at $1,450,000. Would it be offensive if we submitted that offer? Is that not even worth writing up? I don't want to waste anyone's time. What you've done now, whether they accept it or not, And by the way, sometimes they'll just say yes and congratulations, you bought a piece of real estate. But what happens more often than not is they go, okay, well, we're going to wait and see if we get more offers. 3 months later, they call you and they go, hey, you are the one, you're the one person who gave me a legitimate offer on this. You didn't lowball me. You gave it to me where it works. We had a good conversation. You've moved to the top of their list. These same brokers will also call me the next time they have a deal like this and go, hey, I remember you were interested. We were a little stuck on price. I just got this listed. You want to move to the top of their list. You don't want to get on their general email list. That is a tired list that's already been sent to everyone. With a broker, when you can actually get to an offer that works for you, they know you're a ready, able, and willing buyer. You're a real person to them. You'll up your deal flow for years when you build a relationship with them. That's how we're doing this. This took me all of 2 minutes to hop in and pick a couple of properties to do as this example. These are brokers I've actually called that for deal I showed, I actually called on. In fact, after I closed my 76-unit here in just a few weeks, I have an 86 next in the pipeline. If this is still around after that, so if that hotel's still around in like 4 months from me filming this video, almost 100% chance I'm going to buy it if I can use it as multifamily. If you want to beat me to it, please do give Eric a call, buy that building, and I'll manage it for you. I would love to. In fact, I'll even discount your management because I really want to manage that building. It's a cool place. This is how you do the on-market deals. It is that simple. It is not, is it a good deal? Is it a bad deal? What would make this a good deal? And get that darn offer in front of them. That is how you play the game. I buy tons of properties on market. Mentees in Multifamily Strategy bought 13 deals last month. These are first-time deals for people. 13 first-time deals for apartment complexes above 10 units purchased last month. People just did this. Of those, 7 of them were on market. 5 of them were direct to owner. There are deals like this in your market. I promise you, you want to get connected. Make that call. It's one of the easiest calls you're making in your life. I'm going to close on this. When you go to Starbucks and you order a coffee, the barista is expecting you to order a coffee. It is the easiest coffee order you'll ever do in your life because that is their job. The brokers are not scary. These aren't people who don't want to talk to you. Their job is to sell a piece of real estate. Your objective is to buy a piece of real estate. Call and place the order. People who get stuck are scared to pick up the phone on a listed property. You got to realize this is the same thing as ordering a drink from your local Starbucks. It is the same exact thing. Put that much stress on it. Relax. This is a normal thing. They want to talk to you about the property. Pick up the phone, have a relaxed conversation, go buy some apartment buildings. Guys, I hope you thought this was helpful. If you want more tips on how to succeed in real estate and actually buy the darn stuff, follow this channel for more. I appreciate you watching. I'll see you on the next episode.