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Maine Mulit Unit Investment Real Estate (Part 1 of 3)


Everywhere!  It seems I get inquiries all the time from investor oriented parties looking for the best deals out there. The best way to find a best deal is to find one yourself as if it is truly a spectacular deal it is already to late by the time you have asked the question to find it as it will have been snatched up.  The key is finding value in perhaps overlooked properties/areas, simply acuiring for well under what asking price is or putting a real estate deal together before it ever hits the public market.  What constitutes a great deal?  What makes one property more valuable over another?  A case specific question but cash flow, return on equity, appreciation potential seem to be common threads. 

1) Learn the inventory – Determine your geographic target area and go to work! Establish your network and start gathering information on the area, what are the trends, what new development is happening, demographics, rental and vacancy rates, specific tax and ordinance code’s, current values of homes, historical values, etc..

2) Scour the real estate listings, obviously look in the Maine MLSk but also check out auction houses, here is a list of them,  FSBO sites, sign up for a foreclosure web service such as Realty Trac or Foreclosure.com, the local newspapers and by simply driving around the neighborhoods.

3) Initial reseach and analysis- I recommend creating some sort of simple system that allows you to compare various key metrics quickly across your compiled list of properties, a simply spread sheet with boxes to check will work.   I generally look to half my list into properties right away into ones that might work and ones that would never work. 

5) Out of these half, go look at them, all of them, taking action is the only way to be successful in this business as it is in any business. I strongly recommend getting a buyers agent to work with you as it is possible to see property with out one, but adds an unnecessary amount of work you will need to do as well as elimanates the annoyance of having many agents soliciate for your business throughout your endeavors.

Next posting… analyzing a multi unit’s cost  

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