Buying a multi–family property is different from purchasing a single-family home. You’ll likely have to secure special financing (unless you’re buying with cash), and you’ll need to take specific steps to make your purchase. These steps to buying a multi-family property will help you through the process.
- Choose the right REALTOR®
- Research properties
- Choose a lender that offers you the right terms
- Get preapproved
- Choose the ideal property
- Make your offer
- Close the deal
Step 1: Choose the Right REALTOR
The REALTOR you choose will play a huge role in this process. As a multifamily property owner, you’ll naturally have different goals than a person looking for a single-family home will – and your REALTOR will understand that. You need an agent who:
- Understands how much money you expect to spend
- Will work to find you a property that can help you generate income
- Can find properties that meet your needs without compromising on the things you want
Step 2: Research Properties
Ideally, you’ll find a property in an area that’s attractive to prospective tenants. In your search, you may look at things such as school ratings, access to public transportation and proximity to business districts. Your REALTOR can help you find properties that meet your ideal tenants’ needs, as well.
Step 3: Choose a Lender That Offers You the Right Terms
Talk to multiple lenders about your financing prospects. You should absolutely compare interest rates and terms – in fact, you should discuss your options with at least three lenders before making a decision.
Step 4: Get Preapproved
After you choose a lender, get a preapproval letter. Your preapproval letter will let you know exactly how much you qualify to borrow – and you can send it with offers you make on multifamily properties you’re interested in buying; it shows sellers that you’re a serious buyer.
Step 5: Choose the Ideal Property
Your REALTOR will take you to tour the properties you’re interested in. If they’re currently serving as investment properties, your agent may be able to find out what the current owner is charging for rent, how often the individual homes are vacant, and other important information – all these things can help you make the right investment decision.
Step 6: Make Your Offer
When you have found a property that suits your needs, make an offer contingent on an and financing. Your REALTOR will craft the perfect offer for you – you don’t have to do anything but say how much you’re willing to pay for the property.
Step 7: Close the Deal
When the seller accepts your offer, you begin the next step: Securing financing. Your lender will require a series of documents to prove your income. After your lender approves the loan, you can close on the property.
Are You Buying or Selling a Duplex, Triplex or Fourplex in Silicon Valley?
If you’re selling a duplex, triplex or fourplex in Campbell, Cambrian Park, Los Gatos, San Jose, Santa Clara, Saratoga, Willow Glen or another community in Silicon Valley, we’re here to help. Call today or fill out the form below to find out about our innovative marketing plans that can put your investment property in front of all the right buyers.
If you’re also looking for a new multi-family property for sale or another type of home, check out our: