With the rapidly changing economy, reducing rent rates, increased vacancy, and most importantly, massively increased interest rates, a lot of multifamily owners are getting squeezed hard and are looking to sell their multifamily fast..
So, what do you do in this situation?
Well, of courser the best thing to do is to find a way to weather the storm for the next several years and sustain your multifamily portfolio. But unfortunately that’s not always the situation.
So, do you have a multifamily property you’d like to sell fast? We have a team of professionals that buy multifamily properties in most markets around the United States.
Regardless if you just want to sell it to get the quick cash-out or if you’re in a tough situation and need to sell fast, we can probably help.
How it Works to Get a Quick All-Cash Offer On your Multifamily
Our goal is to find the best way to get you out of your property. If it’s listing the property on the market, we’ll help you with that. Other times it’s best to take a cash offer. We are totally transparent with the process.
Speaking of the process – we’ve made the process very simple and straight forward along with absolutely no stress or pressure along the way. The first thing to remember is we don’t believe in high pressure sales tactics.
- The first step is to click this link and fill out the form on the next page.
- Next, you should schedule a time to chat with us.
- After that, we’ll do our research and put together an estimate of the value of your property based on the information you provided us.
- We’ll then decide how to move toward disposition of your multifamily. There are several options and we’ll discuss them all. Read further to see the multiple options we have for your property.
Should I Sell My Duplex, Triplex, or Fourplex?
Selling a duplex, triplex, or fourplex multifamily property is a bit different than selling an apartment building or apartment complex. The biggest reason is that 1-4 unit rental properties are priced based on the value of nearby 1-4 unit properties. A larger apartment building is priced based on the income it produces.
Because of that, the time to sell your triplex, duplex, or fourplex is dependent on the current values of nearby properties. As such, the timing to sell could be different.
Additionally, these types of properties are generally owned by individuals rather than professional investors, so you may run into a variety of other reasons that could force you to sell, for example, divorce or death.
Should I Sell My Apartment Building?
The decision to sell your apartment building really comes down to if you’ve met your profit goals and if your money would be better allocated to a new investment.
Generally, if you’ve owned an apartment building for 5-7 years or more, you’ve maxed the return potential of this property and it could be time to sell and allocate to a new asset.
This rule generally holds true because you have already done the upgrades you plan to, you have pushed the rents to where you want them to be, and there’s limited growth potential based on your current operations.
Therefore, it could be time to allow a new owner to come in with new capital to continue bringing the property to it’s highest use.
How We Can Help You Sell Your Multifamily Rental Property
We can help you sell your multifamily property in a number of ways. Here’s the primary few ways we help owners such as yourself get out of their property and put their money to other uses.
1. List Your Multifamily For Sale
If you have several months of time, money for any upgrades or repairs, and don’t mind multiple showings at your property and intrusion to the tenants, then listing it for sale will be your best option.
Listing your multifamily for sale on the open market will always get you the top price, as long as you have the time and money available.
You need several months because the more expensive the property, the longer it takes to sell. Additionally, with multifamily, we want to make sure we get as many offers and allow for multiple rounds of bidding.
You will need some cash available because before we list it for sale, you’ll want to fix any obvious problems with the property to maximize the potential number of offers. Additionally, if any major items come up during inspections, you may need to fix them prior to close.
But, given all those drawbacks, you will get the maximum price by allowing for multiple offers.
If you are considering listing your property for sale, please contact us.
2. Pocket Listing to Sell Your Rental Property
Some owners want to sell the property discreetly. There’s a variety of reasons for this, but it’s often because the owner is concerned that tenants will get scared about the sale and move before closing.
Unfortunately, when tenants move the Net Operating Income drops, making the property less valuable.
So, some owners choose to sell to their broker’s private list of buyers. For example, we have over 25,000 potential buyers in our database, so a pocket listing generally sells quickly.
So, if you want to sell discreetly use the button above or below to contact us.
3. Buy The Multifamily Rental Property Ourselves to Keep
In some circumstances, you may not have the time or money to list it for sale properly. Also, some properties cannot be financed easily which significantly reduces the buyer pool and offer prices.
In this situation, we may give you a cash offer and a quick closing date.
As stated above, doing the work and taking the time to list your multifamily property will always get a higher price for you, but it simply may not be feasible sometimes. If you think you’re in a situation like this, then please reach out for a consultation to see what the best course of action is.
4. Buy to Flip The Rental Property to Another Investor
Generally, when we buy a property we plan to keep it, but in some circumstances, we may choose to do the upgrades and quickly sell it.
We’ll do this if the rental property doesn’t fit our long-term goals, portfolio mix, or maybe the area is just too difficult for us to maintain good management.
5. Wholesale the Multifamily
Similar to flipping a house, we may make an offer on your property and then take the time and effort to find another buyer for it. We would then sell the contract to them which is also called wholesaling.
If we do this, we charge the buyer a fee which may ultimately save you some money.
3 Important Tips to Selling Your Multifamily
In our experience, you’re best served by doing some prep before selling your rental property. The 3 keys to – prepare the property for sale., work with a pro, and have all your docs ready and available.
Preparation Is Key When Selling A Multi-Family Property
The first thing you need to do is make sure the property is ready for sale. At a minimum, do the following:
- Maximize the rents by fixing up vacant apartments and renting them out.
- Fix any major issues such as roofs, leaks, etc.
- Reduce costs but negotiating lower cost services for maintenance or utilities
- Fix/replace any obvious hazards such as sidewalks, stairs, rotting wood, broken windows, etc.
The goal is to maximize your revenue and minimize your costs while having a great property. If all of these are done, then you’ll be able to sell for top dollar.
Can’t afford to do that or don’t have the time? That’s ok, you can always opt to sell privately to a buyer such as us who can handle heavy rehab projects.
Work With a Professional
You will want to work with a buyer or broker who is a professional with experience in your exact type of property. Do not under any circumstance contact a real estate agent who works with normal home buyers and sellers. These agents will not know what to do and will not serve you well.
Instead, you want to contact a broker who specializes in multifamily property or commercial property.
If you choose to sell off-market, then you want to work with a buyer who has many years of experience (we have over a decade of experience buying and selling multifamily properties both for our own business as well as for clients).
Have Important Documents Ready
Another issue sellers run into is a lack of good documentation. It’s important to have all of your costs and income easily available for the potential buyer.
Think about it another way, if you plan to buy a property but you don’t know what the monthly costs are or even if all the leases are accurate. Would you feel comfortable offering top price or would you offer a little less because of the uncertainty?
With every document you have and can provide, you increase the potential price you will receive.
So, start now and collect all the paperwork you will need. Then, reach out to us to set up a consultation.
When is The Right Time to Sell My Multifamily?
The time to sell your multifamily property is a very personal decision and it depends on a number of factors. The biggest factor to consider is what your plans are moving forward.
There are a ton of reasons why someone would want to sell their multifamily fast:
Reasons Why You Might Consider Selling Your Multifamily Fast:
- Bad economy.
- Can’t refinance in the current interest rate environment.
- Excessive amounts of evictions.
- Dissolution of partnership.
- Death in the family.
- Payoff debts.
There are countless reasons. We can find a win-win way to get it done regardless of the reason.
Selling Due to Extenuating Circumstances?
If you are having an extenuating circumstance, selling your multifamily rental property may be more of a challenge. You may need to sell faster, may not be able to afford repairs or any number of other factors.
Don’t worry, we have you covered with that as well. The first thing we do is assess your entire situation. If we can find a way to keep you in your property and solve whatever problem you’re facing, then that’s what we’ll suggest.
Sometimes just looking at a problem with a different perspective or from someone with more experience can open up doors you didn’t even know existed.
Selling Your Multifamily Due to Divorce?
You need to sell your rental property quickly because of divorce, I get it. You want to get this ordeal over and done with and put it behind you as fast as possible.
We can help with that. We can work a deal that benefits you as much as possible while still helping you move forward with your divorce quickly.
Selling Because You Inherited a Property You Do Not Want
You love your parents or grandparents, but maybe you don’t love their house. Perhaps you live in another city or even a different state and have no intention of ever living in the area again. Another thing that causes people to sell fast is to cover funeral or other estate expenses.
Need to Sell Fast Because of Foreclosure
It happens. Losing a job or getting injured so you can’t work stinks, but it happens. Unfortunately, these temporary situations can cause lifelong problems for you because foreclosure is a permanent mark on your life story and credit report.
Fortunately, if you unload the property before the auction date then the bank never technically foreclosed on your house. You can save your credit from a permanent mark.
Don’t let the bank take your property and have it sit there for months before they decide to sell it. Sell it today!
Relocating and Need to Sell Your Multifamily Fast
You got a job offer in another state and need to sell your house now, but you’re out of time. Maybe you’ve already relocated and your house never sold, now what? We can help you with that too.
Selling Your Apartment Building Due to Bad Tenants?
Sometimes the tenants create so many problems you just want to throw your hands in the air and walk away.
The problem is, it’s hard to sell a property with problem tenants. Very few landlords want to deal with that headache either.
Fortunately, we are problem tenant experts and can make you an offer even if you have the worst tenants in town.
Frequently Asked Questions About Selling Your Multifamily Property
This depends on how you choose to sell your property. If you list it on the open market you can expect to pay anywhere from 3-7% of the sale price in closing costs, taxes, repairs, commissions, etc.
If you sell to us directly, you won’t incur any direct costs as we generally cover all those costs and there are no commissions to pay.
It can take as little as a week if you sell to us, to as much as 4 or 5 months if you list it openly but more often it’s 2-3 months.
If you can’t afford to make any repairs you can try to sell the property to a typical buyer, but getting bank financing on a property in need of repair is often very difficult.
Instead, you may want to sell to a cash buyer, which we have a massive list of. Additionally, we are also cash buyers and can make an offer on your multifamily.
If you need to sell very fast then you need a cash buyer. Banks are never fast with lending so it’s never an option for a fast sale.