Buying or Selling your Multi-family Property

We have extensive experience working with buyers and sellers looking to either sell their multi-unit investments or acquire a multi-family home to either occupy and rent out or use as a straight rental property. Once we understand your goals, we are able to connect you with the right individuals to make the process of buying or selling as seamless as possible.

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Selling your Multi-family Property

Multi-family properties are buildings with two, three or four units. Sometimes multi-family buildings contain five or more apartment units and on occasion the property may have a commercial space on ground level.

Buying or selling a multi-family property is very different from a typical single-family transaction. For instance, a property consisting of up to four units can be financed under single family lending rules, but a building consisting of five or more units or a mixed-use building (apartments with a commercial space) is considered a commercial property and has its own set of financing regulations and not all buyers will qualify for such financing.

The underlying principal of selling your multi-family property is similar to that of a single-family residence. The basics are almost identical:

  • Prepare the property for showings.
    Give the place a face lift; fresh paint if needed, replace worn out carpet, repair any leaks and items that are not working. Evict problem tenants if you can.
  • Price the property according to market conditions.
    The numbers have to make sense. Whether the buyer is an investor or an owner occupant, today’s buyers are savvy. There are many online resources available to calculate the property’s cap rate and the buyers know if the property is overpriced. The more the property sits on the market, the less appeal it has and most buyers think they can negotiate. Selling a multi-family house is generally harder and slower as the buyer pool is smaller. We can certainly ask a premium for a multi-family house in a good condition with stellar tenants, but ultimately, the property does need to be priced in the vicinity of “fair”.
  • Arrange access for showings with tenants.
    If the property is occupied, make sure the tenant understands that they will need to accommodate showings. Here at Krilova Group we want to keep your tenants happy and not disturb them for the “just-looking” buyers… If one of the units is vacant, that unit will be shown and the occupied unit will be shown only with a signed offer. If both or all units are occupied, we will arrange for a video walk-through or a 3D Tour to be available for buyers prior to a physical sowing to minimize the inconvenience to the tenants.
  • Organize the property’s financials to be accessible on demand.
    Buyers will want to see rent rolls, 12 months of expenses including utilities, lease agreements, etc.
  • Market the property to multi-family buyers.
    We understand that selling a multi-family property requires a slightly modified marketing plan. In addition to professional photography, video tours, e-marketing and presence on all major real estate websites and social media, we reach out to agents working with long-time investors that have large portfolios in the area. These investors already have properties in your neighborhood and sufficient cash to add another asset to their portfolio. If the buyer is planning to buy the property and occupy one of the units, we ensure that said buyer is truly pre-approved for a loan and can buy the property.
  • Ensure buyer is truly qualified for a correct loan.
    Owner occupant buyers are eager and excited to buy a multi-family property and quick-start their real estate fortune by occupying one of the units and renting out the others. Many such buyers will be first-time home buyers. These individuals often have the attitude and the will to purchase a multi-family house but sometimes lack the understanding of what it takes to purchase such property. We make sure the buyer is connected with proper lenders that will provide the most advantageous loan terms to the buyer so we can close the transaction with ease. If the buyers agent is newer and is not aware of multi-family buying nuances, we are happy to gently offer helpful suggestions, after all, we are all working towards the same goal.

One of the most important decisions is to hire a real estate agent that understands the complexities of selling a multi-family house. An agent that understands unique marketing strategies as well as sensitivity of tenant-occupied units as well as intricacies of lender financing. We welcome you to call us for a confidential consultation to see how we can help you. Please reach out to us at your convenience and we will make the process simple and easy.

Buying a Multi-family Property

Buying a multi-family house is different from buying a single-family residence mainly because of difficulty of estimating fair value for such property, lender financing requirements and the maintenance involved in maintaining multiple units.

While most buyers looking for an a multi-family building are either established investors or newer investors looking to begin building their real estate wealth, we do work with quite a few homeowners looking to purchase a multi-family property to live in one of the units and to rent out the rest.

Whatever your goals are, we are confident we can help!

For a novice investor or an established investor we determine if subject property is priced fairly and is producing adequate income to make it a worthy addition to the individuals existing portfolio. If the property is vacant we estimate possible rental rates and determine what income the property can produce if it was fully occupied.

If financing is needed and you are looking for a lender that does multi-family loans, we can connect you to several local professionals with favorable lending terms.

Is a Multi-Family home right for you?

While investing in a multi-family house is a great way to kickstart your real estate investment portfolio, there are certain nuances that may or may not be right in your situation.

For instance, being someone else’s landlord is not always smooth-sailing. If you do not want to answer your phone in the middle of the night because the tenants toilet is clogged, we can connect you to a maintenance company that will handle the issues for you. What do you do if the tenant stops paying? How much does an eviction process cost and how long can it take? Do you have cash reserves for a new roof or furnace (or two if each unit has its own utilities)…

We can help you determine if the decision and the commitments of purchasing a multi-family house is right for you. Contact our team today for a confidential consultation.

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