You’ve seen it before.
A property that looks great on paper. Low price. Good neighborhood. Promising returns.
But did you ever stop to ask why it’s still on the market?
That’s the question we unpacked on this week’s Heartland Multifamily Show, where I sat down with co-host Isaiah Garman to revisit one of my core Festos: “If it seems too good to be true, it probably is.”
As a rule of thumb in this business—especially in the multifamily space—the best properties never make it to the open market. Over 90% of the deals we’ve done over the years never hit a public listing. They were passed through relationships, trust, and insider networks.
I’m not telling you that every listed property at a low price is a trap—but it should raise a red flag. If the deal is being offered to you, and you’re not an insider, there’s probably a reason. Maybe the returns are inflated. Maybe the location has hidden risks. Maybe the seller knows something you don’t. Whatever the reason, you need to lead with skepticism, not emotion.
Too many landlords get excited. They fall in love with the potential upside. But emotion has no place in due diligence. Instead, come in with benchmarks.
I talk a lot about how my “superpower” is being able to evaluate a property with a glance. That comes from years of owning, managing, and exiting properties in markets across the country. The patterns are there. You just need to look.
Ask yourself:
Does this property fit my investment model?
Are the rents aligned with the neighborhood?
Why did the last owner want to get out?
What am I not being told?
Trust your gut—but check it against the facts.
Remember: real estate is not about finding deals, it’s about avoiding the wrong ones
