Successfully selling a multi-unit rental property to an investor will require you to emphasize the property’s best features while minimizing risk. Fortunately, with a thorough understanding of real estate business principles, the current marketplace, and solid financial projections, you can effectively appeal to the right investors. To help get this process started, here’s a helpful guide.
How to Market Multi-Unit Rental Properties
1. Outline the Projected Rental Income
Getting the attention — and eventually, the backing — from an investor will require you to state financial projections. To best go about this, outline the projected rental income for the course of the next ten years. Be sure to incorporate growth rates into your projection. These rates are typically around 2.5%, similar to the rate of inflation.
2. Keep the Tenants in Place While the Property Is Up for Sale
Investors are looking to assume the least amount of risk possible when they make an investment. For this reason, keep tenants in place while the property is for sale. An already populated building will be easier to market, as it’s already generating income. This means it has an established track record of consistent, predictable payments from its tenants as well as a record of payment increases, as opposed to a property that’s vacant with no guarantee of renters.
3. Highlight Features that Are Important to Renters
Investors want to know that the properties they invest in will appeal to tenants. When marketing to investors, focus on highlighting the rental’s best features, particularly those that are most important to tenants. These can include location, square footage, building amenities, and parking perks.
4. Know the Marketplace & Location
When marketing to investors, you’ll want to have a thorough understanding of the marketplace as well as the area that the property is in. This knowledge should encompass everything from real estate business principles, to current market trends, to recent sales, to neighborhood amenities. Knowing this will allow you to extract the property’s best-selling points for the most successful marketing efforts.
If you’re a real estate entrepreneur seeking help marketing to investors, look no further than EXIT Realty Upper Midwest. As the fastest growing real estate franchise they provide both new and seasoned real estate agents with the tools and knowledge for long-term growth. To join their rapidly growing real estate franchise in Iowa, Northern Minnesota, Minnesota, Illinois or Dakotas as an independent agent or with their brokerage, call today at (651) 505-3570 or visit them online.