How to approach realtors to find off market deals?

4 Replies

I have a realtor in mind that I want to approach about helping me find specifically off market multi-family property to buy. I'm not sure how I should approach and bring up this topic. I have experience dealing with realtors for SFH but not MF, is there anything different? In my mind the answer is probably not much but I'm not a realtor.

Also is it wrong to talk to more than one realtor, since I'm just starting out and have not built up any working relationships with anyone, to increase the odds of finding more property? I am very much against burning bridges, even if they deserve it, so want to start this off right. 

Thanks in advance for the help.

Hi Nik,

My advice is to just be honest and upfront with the realtor or realtors you speak with. Most agents specialize in one specific area of real estate, so the person you have in mind may be out of their comfort zone dealing with MF. I'd just ask them and see what they say. 

As far as talking with several realtors at once, there's absolutely nothing wrong with it provided you let them know and don't have a signed contract with one specific agent. 

@Nik Moushon I think it depends on the number of units you are trying to purchase or locate for a multifamily property.

If you are looking for smaller less than 20 to 30 units then I believe using a real estate agent to help you find these would be okay. However, most real estate agents and residential do not know a lot about multifamily real estate. Once you get above five units the game changes and it is outside of the wheelhouse for most real estate agents.

If you're looking for larger 30+ units then you should connect and network with commercial multifamily brokers in your area. Even if you are in a smaller market there are multifamily brokers that will service your area.

My biggest caution to you (agreeing with @Troy Ramey ) would be to make sure that you do not have any real estate agent or commercial multifamily broker exclusive to finding deals for you. You want to make sure you have as many people looking for these properties for you as possible.

@Dan Handford Thanks for the input. 

I am starting small. I have my eye on a couple 4-5 plexs though there is a couple 10+ out there but I'm thinking they wont be worth it atm though i still haven't run real complete numbers on it yet. But even those look like they are considered "small" by how you define it. 

I know for SFH you tend to pick one realtor and thats it. At least thats what I have done in the past. Wasnt sure if it was different or not. Thanks for affirming I should keep my options open.