If you’re tired of brokers not returning your phone calls, or asking for “proof of funds” before they will send you their off-market listing, you’re not alone.
When I first started calling brokers, I would say something like, “My name is Michael Blank. I’m a real estate investor looking for apartment building deals with 20-30 units. Is there anything you can send me?”
The approach seemed pretty straightforward, but brokers weren’t returning my calls. If I did get a broker on the line, I’d get some version of this response: “Send me your proof of funds and I’ll be happy to share with you what I have.”
Proof of funds? At the time, I was in the depths of my restaurant misery and I didn’t have proof of funds. I was stumped and didn’t know what to do.
But finally, I cracked the code.
Today, I am going to save you a lot of time and frustration and give you the exact script that will get brokers to take you seriously and return your phone call. This is a very simple script that is basically guaranteed to give you a 99% success rate in avoiding the request for proof of funds.
Are you ready?
Here it is…
Watch the video below (or keep reading).
The Broker Script That Works
When calling a broker, you will prepare a modified version of this script to suit your deal:
“Mr. Broker, I work with a group of high net-worth individuals. We’d like to expand in the Atlanta market. Now, we already have property management company XYZ on board and are continuing to build our team locally. We’re looking for deals in the $1M to $2.5M range with at least a 6% cap. We would consider light to medium renovations but no re-positions. Is there anything you have in your pipeline that you can send over for me to review?”
This script is very intentional. Think about it, brokers receive calls every day. They have to screen their voicemails and phone conversations for newbie investors and tire-kickers.
With this script, you are addressing concerns that the broker has upfront and positioning yourself as someone that can perform and close the deal. Let’s take a closer look:
(1) You addressed their money concern by stating that you’re working with a group of high net-worth individuals. CHECK.
(2) You addressed their experience concern by stating that you’re already working with a property management company and you’re “expanding”. CHECK. Now, you’re not lying about this stuff, even if you are expanding from zero. You are certainly not lying about your property management company, which is why you need to have this person on your team before you call the broker. (More on that later).
(3) Finally, you’re using insider language like “cap rate” which is insider lingo for “how to value apartment deals” and “re-position” which is insider lingo for “a really big renovation”. CHECK!
In order to use this script with confidence, you’ll have to do two things that I’ve alluded to already:
Task # 1: Educate Yourself
To educate yourself, there is no shortage of free information for you to explore on my YouTube channel, this blog, and my podcast: The Apartment Building Investing Podcast with Michael Blank. New material is added every week.
If you’re ready to invest in yourself, I have a complete course called The Ultimate Guide to Buying Apartment Buildings. The best way to find out more about this course and if it’s right for you, is to watch an on-demand webinar where I’ll show you the blueprint you need to do your first multifamily deal.
To access the blueprint, visit TheMichaelBlank.com/Blueprint.
Task # 2: Build Your Team
We talked about the importance of having a property manager on board, which is key. You also need a lender on your team to help you know what kind of loan terms you are getting, and what you need to do to qualify for that loan.
I won’t go into detail here, but for tips on building your team you can check out my video blog: How to Build Your Commercial Real Estate Team and Get Your First Deal
You need to tackle these tasks before you start calling brokers. Both are relatively easy to do within 30 days, and soon you’ll be calling brokers with the confidence in yourself, your team, and your script.
The Magic That Happens When You Use This Script
Anthony Metzger is a wine-maker turned real estate investor, with zero experience buying property. At just 29 years old, he took advice from my podcast and skipped the unnecessary step of investing in single family homes and dove right into multifamily.
He invested in my online course, built his team, and started calling brokers using the script.
And guess what? They took him seriously! They never asked him for proof of funds because they assumed he was an experienced investor.
As a result, Anthony was awarded an $11M deal (218 units in Little Rock, AR). He brought it to us via our Deal Desk. We partnered, raised all the money for the deal, and closed it.
Anthony’s share of the acquisition fee was $20K. The first of many deals to come. And it’s all due to his willingness to invest in himself, follow the steps to build a team, and use a proven script to source off-market deals.