We syndicators have it rough: we try to buy apartment buildings without having the cash or credit ourselves to do so. Instead, we rely on a group of investors to put up most or all of the cash.
Especially if we don't have a track record, it's tough to be taken seriously – by anybody, but especially the commercial real estate brokers on who we rely on for deal flow.
Follow these steps and see how far you get:
- Cold-call a broker and tell him you're looking to buy a $1M building.
- The broker will say “great, send me a proof of funds and I'll send you over some deals”.
Now you're dead in the water.
What can we do to be taken seriously if we're using other people's money and don't have a track record?
In this short video, I talk about how to create credibility by creating a sample deal package that will impress the socks off any professional you're calling on.
In addition, it's critical to analyze a deal when you get it and get back to the broker with the most you can pay for a deal and also why. Most potential buyers never do this, and this will set you apart from the pack. It also builds trust because the broker gets feedback about the kind of deals you're looking for and how you underwrite them.
And I have one more tip for you to address the standard “show me the money” response and how to overcome it (but you'll have to watch the video to hear about it -;)
OK, enough talk, let's watch the video.