Often, prospective investors in multifamily real estate think, “I want to buy an apartment complex. But how do I get started?”
You may or may not know that buying apartment buildings and renting them out is about a lot more than just finding a multifamily real estate space. There is a lot of responsibility involved for owners after they buy an apartment building, too.
Fortunately, the experts at CTG Real Estate Services are here to explain exactly what those responsibilities are — and help put the systems in place to ensure your new property’s continued success. For tailored guidance through your process of buying apartments and renting them out, schedule a consult with our team today.
What Is Involved in Buying an Apartment Building?
With so many people touting the investment benefits of multifamily properties, buying apartment complexes may seem like an easy way to turn a profit. What most people don’t realize, however, is that buying an apartment complex by itself does not guarantee a profit. It’s the work that goes into it that does.
Anyone considering starting a multifamily real estate business by purchasing an apartment building must be prepared for the process of renovation, vendor contracting and property management. Buying an apartment building is not necessarily a cheap real estate investment, and the steps involved in making it profitable will cost even more.
After you have bought your multifamily property, you will typically need to complete these steps to increase the rent you can charge and attract the tenants you want:
- Construction and renovation
- Addition of attractive amenities, like gyms and swimming pools
- Hiring maintenance management teams
- Choosing utilities providers
- Finding a property management company
- Creating long-term capital and facilities plans
Consider these aspects before and when buying an apartment complex. You will want to choose a space that you can realistically transform into a profitable one for your personal budget and goals.
How to Buy an Apartment Building
If you are sure that buying an apartment complex is right for you, there are a few steps you will need to take.
1. Determine Your Asset Criteria.
Your asset criteria are the aspects that will determine how to buy an apartment building that fits your goals and needs. Your real estate professional will use these criteria to find prospective spaces, whether they are currently listed for sale or off-market. Your asset criteria should also be considered in your business plan.
Asset criteria should include:
- Location of your apartment building
- Marketability of the area, including any close amenities
- Number of units in the building
- Existing amenities (and/or space to add some)
- Budget for the purchase of building and any necessary renovations
- Desired monthly rent rate
- Budget for monthly maintenance and upkeep
- Capitalization rate
- Characteristics of desired tenants
2. Hire a Real Estate Company.
While you can certainly work independently when buying an apartment complex or building, working with a real estate professional will give you access to more properties at a generally lower cost and with less competition. Real estate professionals can evaluate your asset criteria to quickly find you several potential properties.
CTG Real Estate Services can provide you unparalleled access to potential spaces, thanks to our unique partnerships (more on that below). Our team will discuss your asset criteria in depth to find the perfect space for you.
3. Find a Space and Sign the Sale Contract.
Your real estate professional will present several spaces to you. When you are ready to purchase one (keeping in mind the renovations you will need to complete), your professional should guide you through the final process of signing a contract.
Some sellers will have chosen a real estate legal team to guide both parties through the sale process. If not, your real estate professional should locate legal representation for you. They will draw up a sales contract and locate a title company, and the deal will be closed once both parties are comfortable with the terms of the sale.
From here, you will need to complete all the steps required after buying an apartment building to ensure its success moving forward. And this is where CTG Real Estate Services comes in.
How CTG Real Estate Services Can Help
Why should you choose CTG Real Estate Services to guide you through how to buy an apartment complex or building? The answer: Service that goes above and beyond the signing of a final sale contract.
Like many real estate professionals, CTG Real Estate Services can help you buy apartment buildings that meet your asset criteria. Unlike other professionals, though, CTG Real Estate Services can also help you complete the steps to prepare your new property for successful leasing.
Our founder and CEO, Chris Gardner, has helped many potential investors with buying apartment buildings — and he can help you, too. He has the personal experience of buying and renovating spaces as an owner, and your vision and desires will always come first when you hire his services.
CTG Real Estate Services can provide you access to hundreds of off-market properties through our partnerships with financial lenders across the country. These spaces are available to our clients for a cheaper cost and at a lower competition than typical listed properties, providing a better opportunity to find the perfect space for you. Our team will help you find the space you need and complete the legal process of your sale contract.
But we don’t walk away once the contract is signed; CTG Real Estate Services offers the knowledge of “turnkey solutions” to help you prepare for maximum leasing of your building. This means everything from offering guidance on renovations and build-out to finding the professionals you need to upgrade and manage your space into the future. Chris Gardner has been there — let him help you get there, too.
For more information about how we can help you purchase an apartment complex or building, please contact our team today.