mom and pop multi-family
Issue 54 - October 15th, 2021
There is a huge opportunity for real estate brokers to carve out an incredible niche focusing on selling “SUB-institutional grade” multi family properties like duplexes, fourplexes, and smaller apartment buildings.
What do I mean by “sub-institutional grade”?
Sub-institutional properties are usually bought and owned by “mom and pop” investors or smaller real estate investment firms. “Institutional” grade assets are usually owned by larger real estate funds, pension funds, REITs, and others who focus on larger asset purchases (price and size).
Right now, this “mom and pop” part of the market is truly no man’s land with some residential agents taking on these listings/buyers and some smaller commercial real estate brokerages dabbling in this market. Buyers and sellers of these assets usually just represent themselves or try to find deals on their own directly with owners. These investment assets are in great supply in neighborhoods all around the country, and there is a huge opportunity for brokers to exclusively focus on this part of the market to build an incredibly successful business.
Professional investors who focus on this part of the market can find home run deals as there is a lot of pricing inefficiency which creates opportunities.
In addition to the opportunity for agents to make an absolute killing focusing on this part of the market, I think another great idea is an online marketplace specifically for this niche vertical. I am imagining something like a RoofStock.com or Sundae.com property marketplace for this vertical. This would be a great business idea for someone to pursue in my opinion!
happy duplex hunting!
Newsworthy Links To Share
How Jeff Bezos' Blue Origin Is Impacting West Texas Real Estate (Million Acres)
REX undergoes layoffs, weighs changes to business model (Austin Inno)
Divvy Homes raises $735 million in debt to help more Americans buy homes (SF Business Journal)
Largest Private Lake in Texas, Touted for Development, Hits Market at $110 Million (CoStar)
Rich New Yorkers are cashing in on a skewed property-tax system. A $2 million luxury condo in Brooklyn can end up with a $157 tax bill, while a $235,000 condo owner in the Bronx can pay 25 times more. (Bloomberg)
With co-sponsor Redwood Trust, Inc., Point has completed the first-ever securitization backed solely by residential Home Equity Investment agreements (Inman)
Love this move by ReMax:
Hey Sam! I am the founder of yieldeasy (www.yieldeasy.com) a platform that specializes in small mutlifamily properties (2-20 units). We want to give mom and pop investors the ability to transact, with low cost, bringing a pool of verified buyers and a way to manage the offer and closing process. Would love to connect with you and get more insight.