To achieve financial freedom, you need deals. Read on for the top 4 strategies that are helping investors in my network get multifamily properties under contract in today’s market.
Step one in achieving financial freedom is getting a multifamily property under contract. Whether you’re working on your first deal or looking to add to your portfolio, I’ve identified 4 strategies that are working right now for the investors in my network.
Watch this video (or keep reading):
Strategy # 1: Be Persistent with Brokers
For whatever reason, many brokers are not good at returning emails and phone calls. That means it’s up to you to be persistent and keep reaching out. As Babe Ruth wisely said, “You just can’t beat the person who won’t give up,” so leave one more voicemail. Send one more DM. It may be the difference between getting a deal under contract—or not.
I recommend that you work toward building rapport with 5 brokers in the markets where you’d like to invest. Also, keep a record of your interactions so you can remember what you talked about and what method of communication seems to work best with each broker.
Strategy # 2: Keep Track of Lost Deals
The ugly truth is that a LOT of deals (I’d say as many as 50%) don’t close. So, if your offer isn’t accepted, don’t get too disappointed—because if you play your cards right, that deal may come back to you.
Call the broker back on a monthly basis to touch base and ask if the deal has closed. If so, find out the purchase price. If not, you may get a second chance at the property. And your chances improve exponentially if you are top-of-mind with the broker working the deal.
Strategy # 3: Visit Brokers Before You Have a Deal
Typically, we advise aspiring multifamily investors NOT to get on a plane until they have a deal under contract. But what I’ve observed lately is that investors who make the effort to meet brokers in person accelerate the relationship-building process and get more deals under contract.
This is not to say that you should catch a flight without a little planning in advance. Set up meetings with brokers and property managers in the market you are interested in and be intentional about making the most of your trip. Establish trust with a few top brokers, and YOU will be the investor they call with off-market and pocket listings!
Strategy # 4: Don’t Be Afraid to Cold Call Owners
Yes, it can be nerve-wracking to cold call a building owner, but what’s the worst that could happen? If they say no, you’re in the same position you were before. But if they say YES, you have one more property under contract.
There are a number of online databases (like ListSource) that will provide contact information for property owners, or you can hustle your own leads simply by getting in the car and driving through neighborhoods you’re interested in. Many of my students have had success networking through property managers to get connected with owners.
What’s Working Now to Get Multifamily Deals Under Contract
If your goal is to get a property under contract in today’s market, be persistent in reaching out to brokers, follow up on lost deals, visit brokers before you have a deal, and consider cold calling owners. Follow these 4 strategies, and I have no doubt you will be closing a deal in the very near future!