One common question I hear a lot is about what brokers really think about your offers. Do they like it? Will they move forward with you on the deal? Will they start sending you other deals that might be better?
First, let’s start with a reality check: no one is going to give you off-market multifamily deals after two weeks of calling brokers.
Building trust with brokers is a process – they’re not going to suddenly start handing you hidden gems because brokers deal with “tire kickers” all the time (people who seem interested but don’t follow through). To get off-market deals, you have to prove yourself as someone who’s prepared and equipped to handle a live deal.
How to Build Credibility with Brokers
The first step is to educate yourself on building relationships with brokers. You can either do that by watching my videos on the topic here or try meeting brokers and property managers in person.
Even if you have to hop on a plane, meeting face-to-face with your short list of top brokers and property managers can make a big difference. You can get that list of brokers by going on sites like Loopnet, adding the names and numbers of the brokers there, putting them in a spreadsheet, then work down the list.
But let’s focus on what you can do right now.
Be responsive and dig into why a deal isn’t penciling. Don’t just say, “This doesn’t work for me.” Take the time to understand the financials and point out specifics. For example, if you’re 25% off the asking price, there’s likely an issue with the cap rate or the financials provided.
Spend a little extra time early on to look at the details. Check the income—what’s the real vacancy rate? Is it 5% like the broker claims, or is it closer to 10% based on your property manager’s input? What about expenses? If the broker says the expense ratio is 35%, but your property manager estimates 50-55%, then you have a starting point for a conversation.
The 10-Minute Offer Technique
Here’s where the 10-minute offer technique comes in. You can use it to show brokers why the numbers don’t align. Say something like:
“Look, I’m coming in at a much different price because my assumptions are different. For example, I’m seeing 10% vacancies based on my property manager’s experience, not 5%. Also, the expense ratio you’re using seems low compared to the typical 50-55% in this market. I just want to make sure we’re on the same page before moving forward.”
When you frame it this way, you’re showing the broker that you’ve done your homework and are genuinely trying to find common ground. It’s a give-and-take conversation that sets the tone for a productive relationship.
Why Some Brokers Struggle
Not all brokers are the same. Some are better than others at managing their listings. The good brokers will push sellers to price their properties realistically. They know that lower prices lead to quicker sales and better chances of getting paid.
On the other hand, less experienced brokers will list properties at sky-high prices just to please sellers. These properties often sit on the market unsold, frustrating everyone involved. If you encounter one of these brokers, it’s even more important to have a respectful conversation about the financials and why your numbers differ.
Sometimes, creating a Loom video can help. Record yourself reviewing the financials and explaining why your numbers don’t align with theirs. This personal touch can go a long way in building rapport.
Timing Is Key
One critical thing I want you to know before you start talking to brokers: don’t do it until you’ve built your team and know your numbers.
If you call brokers without a solid understanding of financials and can’t reference a property manager, you’ll look unprepared and like a “tire kicker.”
Brokers won’t take you seriously unless you can confidently back up your assumptions. This is why it’s so important to have a strong team and a good grasp of deal analysis before making those calls.
Finally, don’t underestimate the power of networking. Get out of the house and surround yourself with like-minded people. Whether it’s local real estate meetups or conferences, these events are invaluable for building connections.
When you attend a conference, don’t just collect business cards and call it a day. Follow up with every person you meet. Set up Zoom calls to keep the conversation going and see where those relationships might lead.
Keep Building Momentum
Building trust with brokers and navigating real estate deals isn’t easy, but it gets better with practice. The more brokers you talk to, the more comfortable you’ll become, and the easier it’ll be to communicate effectively.
Start small. Call five brokers a day, explain your reasoning when a deal doesn’t pencil, and always be respectful. Over time, you’ll build the relationships and reputation needed to access the best deals.
By the time you’re ready to close your first deal, you’ll have a story to tell about how you worked hard, stayed persistent, and built credibility with brokers. That’s the kind of momentum that leads to success in this business.
Now, go out there, make some calls, and get started. You’ve got this!
To your success,
Michael Blank
