Struggling to find good multifamily deals? Read on for 9 tips to build relationships with brokers and land off-market real estate deals!
If you’re looking to do your first multifamily deal, it may feel like you’re stuck in a Catch 22. You need access to good off-market deals. But brokers won’t take you seriously without a track record.
What can you do to make connections with brokers and build their trust—even if this is your first experience with multifamily investing?
In this week’s video blog, I share 9 tips for landing off-market real estate deals!
I explain how to get facetime with brokers and provide value, solving problems for them and offering feedback on deals.
You’ll understand how to build credibility by getting educated, assuring brokers they’ll get paid, and partnering with an experienced team.
Watch the video below (or keep reading).
Tip #1: Don’t Sound Like a Newbie
When you meet with brokers, it’s important to know what you’re talking about so they take you seriously. The fastest way to do that is to educate yourself in the realm of multifamily and build an experienced team.
I won’t go into detail about building a team here, but you can learn more by checking out my video blog, How to Build Your Commercial Real Estate Team and Get Your First Deal. On the education front, explore the resources on my YouTube channel, listen to The Apartment Building Investing Podcast, and invest in The Ultimate Guide to Buying Apartment Buildings with Private Money, an online course that walks you through the process of doing your first multifamily deal.
Tip #2: Solve Problems for Brokers
Don’t approach brokers expecting to get something for nothing. If you want them to email YOU when they come across an off-market deal, you’ve got to provide value.
To build strong relationships with brokers, ask them what they need. They’re looking for a good inspector? Connect them with one! You’ve found a useful market report? Share it! Give, and you will receive off-market deals.
Tip #3: Provide Timely Feedback on Deals
Another way to show brokers that you are a professional is to give them feedback on marketing packages within 24 hours of receiving the off-market deal. If you like the numbers, make an offer. If not, explain why.
This kind of responsiveness sets you apart from the vast majority of real estate syndicators. The next question is, how do you analyze a deal that fast? Use the most popular apartment building analysis tool on the planet, the Syndicated Deal Analyzer, to evaluate a deal in minutes.
Tip #4: Assure the Broker They’ll Get Paid
Brokers want to know they’re going to get their cash money when they put a deal under contract. Reassure them by demonstrating that you’re serious, you’re educated, and you’ve got a strong team and investors behind you.
For a little extra incentive, consider paying the broker an additional 1% fee. As Robert Kiyosaki says, you have to BE before you can HAVE, so try BEING generous first and see if it leads to off-market deals!
Tip #5: Network Like Crazy
Take brokers to lunch, drinks, or sporting events. Spending time with people is the only way to build the kind of relationship that leads to off-market deals.
Michael Becker has a whopping 6K multifamily units, and he attributes his success to constant networking. (Listen to my conversation with him on the podcast and learn more about the right way to work with brokers!)
Tip #6: Hop on a Plane BEFORE You Have a Deal Under Contract
Conventional wisdom tells us to wait until we have a deal under contract before we spend our money on airline tickets. But I’ve observed that the syndicators who break this rule build relationships with brokers more quickly—and that leads to off-market deals.
To be clear, I’m not recommending that you go in blind. Do the up front work first, and plan your trip in advance. Spend one or two days in the market. Schedule meetups with multiple brokers. Spend time with your property manager. Tour several properties. This face-to-face contact accelerates the relationship-building process. And that translates to off-market deals.
Tip #7: Do What You Say
You can tell a lot about a person’s character based on their follow-through. Brokers want to do business with sponsors they can count on, so if you say you’re going to do something—DO IT.
If you promise to send an email by 5pm on Friday, send the email by 5pm on Friday. It seems obvious, but you’d be surprised how much you can differentiate yourself by being a man or woman of your word.
Tip #8: Be Persistent and Consistent
Brokers are busy, and they aren’t always going to return your calls or emails. It’s your job to stay in contact with them on a regular basis.
Check in and see what off-market deals they have. Provide value. Come up with reasons to stay in touch. Brokers won’t know you’re serious unless you show it by connecting with them consistently.
Tip #9: Partner with a Senior Operator
If this is your first rodeo, it’s smart to partner with a more experienced operator. A joint venture of this kind is a shortcut to credibility, and it puts you in a much stronger position with brokers. The kind of position that leads to off-market deals.
At Nighthawk Equity, the investing arm of the Michael Blank organization, we partner with aspiring syndicators on their first multifamily deals. To date, we have helped new sponsors close nine deals for a total of 1,100 units across the US through our Deal Maker’s Mastermind.
The secret to finding good off-market deals is getting to know a few good brokers.
Make connections by…
- Networking like crazy
- Hopping on a plane BEFORE you have a deal under contract
Build trust by…
- NOT sounding like a newbie
- Assuring them they’ll get paid
- Doing what you say
- Being persistent and consistent
- Partnering with a senior operator
And provide value by…
- Solving problems for brokers
- Providing feedback on deals
Build strong relationships with brokers, and you’ll be on the receiving end of quality multifamily off-market deals!
Looking for a senior operator to help build your credibility? Join our Elite Investors Club!