What does the term “retrading” mean in multifamily investing?

Good question.

The term “retrading” is when a buyer of a multifamily community signs a contract to purchase an apartment community for a certain amount of money such as 10.82 million and then later announces that do to this or that problem or interest rate changes or one hundred other excuses he can only now pay 10.41 million.

The buyer is betting that the seller won’t stop the deal since he is fully committed and expects the money soon and likely has already made plans that involve the use of that money. So the buyer takes a gamble that he can weasel around and hold his hand out for a discount.

If a buyer over time gets a reputation for doing this often it can make it more difficult for the buyer to win in a competitive bidding environment. If the seller’s agent tells the seller that the buyer that submitted the offer has a reputation for always retrading deals it may be more likely the seller will choose to sell to some other buyer.

The new investors that do the best in multifamily don't look for apartments. Instead, they look to find experienced apartment investors that will let them invest into their deals. Being a limited partner you will avoid all the problems a general partner faces.

You then can focus on your core business or work and make more money to invest. If you are the type of person that wants to do things the easier and more efficient way, I created a group that can help you learn how to invest.

My group, the Benjamin Z Miller Investor Networking Group, meets every Sunday on Zoom. I created this group for new and experienced investors to network and make more contacts.

If you don’t know the market and are trying to act as a general partner, I can’t even tell you how many problems this will give you compared to being a limited partner that does not take on that responsibility.

Try and avoid investing in multifamily in states where the tenants have more ways to make problems for you. It is much more difficult being a landlord in New York compared to Texas. Texas is a landlord friendly state.

If you would like to learn more about multifamily investing, you should join the Benjamin Z Miller Investor Networking Group.
Once you attend one of the Sunday meetings you will receive a Google Sheets document with the phone and email of the other investors that attended.

From there you can reach out to numerous multifamily investors. I also am good friends with some of the best well known multifamily investors so if you need an introduction to a particular investor in some cases I can help you.

Before you do any investing you should invest more time and money in your financial and legal education. I offer education and training to landlords, engineers, doctors and dentists, and many others that would like to learn how to enjoy the benefits of multifamily as quickly as possible. If that sounds interesting contact my office by going to www.benjaminzmiller.com and fill out the contact form.

You also can register at meetup.com at the link below:

https://www.meetup.com/benjamin-z-millers-investor-networking-group/

I hope that helps and good luck with your investing!

Benjamin Z Miller
www.benjaminzmiller.com
1-817-203-4160
[email protected]
https://www.linkedin.com/in/benmillersells/
https://twitter.com/BenjaminZMiller