There’s more than one way to skin a cat. And there’s more than one way to buy investment property.
Experienced property investors realized a long time ago that in order to grow their businesses, they had to develop multiple lead sources.
Apartment Building Investing Is Very Powerful
Don’t limit yourself to “fixer-uppers” single family houses. These investments are great, but the competition is usually very fierce. Have you ever thought of investing in smaller apartment buildings?
For example, a four-plex or four unit apartment building is a great way to get started as a property investor. All of your maintenance and repair activity is limited to one location.
These investment properties have been known to generate some great monthly cash flow – provided you do your homework and buy the property right. Targeting MLS listings and “driving for dollars” are two solid lead generation techniques for locating these properties.
Vacant Apartment Buildings
If you locate a vacant or distressed apartment building, there are several steps you can take when pursuing the property. A local property search (at the courthouse) will usually tell you who the “owner of record” is of the apartment building.
Once you have this information, you can telephone the owner and strike up a friendly conversation with him or her. Let the owner know that you’re a serious property investor in the area and you’re interested in purchasing his/her apartment building. Tell him you can have an attractive offer ready in a week if he’s interested.
If the owner indicates he’s not interested, thank him politely. And always follow up by sending out a hand written letter and your business card. Many property investors have bought from owners that eventually changed their minds.
Have Your Investment Property Paperwork Ready To Go
Always have a confidentiality agreement ready before you meet with any potential seller. Having your paperwork in order makes you look professional and let’s the owner know you’re a serious buyer. If the seller agrees, hand deliver the agreement to him.
This is a great opportunity to introduce yourself and develop some rapport. A confidentiality agreement is usually required before you can see the property’s financial statements anyway.
Most sellers don’t want you disturbing the tenants, so the interior inspection may have to wait until you have an accepted offer in place. Of course if the property is vacant, this would not apply. Just make your offer contingent upon an acceptable property inspection.
