The Law of the First Deal tells us that once you close on your first multifamily property, the next deal will follow in quick succession. The question is, how do you get that first deal done—and done fast?
Are there any insider strategies for accelerating the process and getting that first property under contract asap?
To find out the answer, watch the video below (or keep on reading).
Breaking the Rules
Conventional wisdom tells us to wait until we have a deal under contract and THEN hop on a plane to meet with the broker and inspect the property. If you are new to investing or new to a particular market, however, building relationships with brokers is crucial. And it’s difficult to do that over the phone.
A number of my mentoring students have had success with breaking the rules and making the effort to meet with brokers in person. That face-to-face interaction builds trust and makes brokers more inclined to share off-market deals with you. But you can’t catch a flight every time you have a conversation with a broker. So, how do you plan a trip that maximizes your time and affords you the opportunity to connect with the right people in that market?
First, I recommend spending one or two full days in your target market and packing your schedule. Before you travel, get familiar with property management companies in the area. Choose three to five that you like and schedule time to meet in person and walk their properties.
Follow the same process with brokers. Choose three to five that you have good rapport with over the phone and make arrangements to see at least one of their properties, preferably more. Invite each broker to coffee or a meal and get to know them on a personal level.
Foot on the Gas
We tend to do business with people we know, like and trust, and brokers are no different. In lieu of a track record, getting on a plane is a good way to demonstrate that you are serious about multifamily investing and connect with brokers one-on-one. Undoubtedly, your willingness to make the trip will set you apart and create opportunities to do your first deal more quickly.
And as good deals get harder to find, relationships with brokers get more and more crucial. Rather than hunting for deals on LoopNet and competing with all the other aspiring multifamily investors, brokers will start to bring pocket listings and off-market deals TO you. If you get your name at the top of a broker’s buyers list, you can effectively accelerate your multifamily investing career—and fast-track your route to financial freedom.
The rule around getting a deal under contract before you meet the broker was made to be broken. But it’s important to be intentional and plan ahead to make the most of your trip. Set up meetings with your top brokers and property managers and use the time to build key relationships with the people who can move your multifamily investing career forward—by helping you do your first deal FAST!