I am going to say it: "its been hard to find deals lately" . And I don't mean I'm getting properties sent over to me, I do due diligence on them and they turn out bad. I mean no brokers will send me ANY deals. I am looking for multifamily units in phoenix AZ 30 - 80 units. I have been part of over 200 units worth of deals so far so I wouldn't think its an issue of track record, this is just the first time I am looking to source the deal via broker or seller off-market.
How to reach more brokers who will send you stuff that MAY work?
@Zachary Jensen you're not the only one struggling to find deals in the Phoenix area but there are still opportunities it's just a matter of identifying them and then capitalizing on them. You may need to adjust your search for a slightly different product or location. As in any other business, relationships are key to success. You may already be doing this but when was the last time you took one of these brokers out to lunch or took time to meet them in person? Phoenix brokers are getting slammed with out of state inquiries. They have to protect their time and already have their "short list." What can you do to set yourself apart from other out of state investors to get on that list? Sourcing deals can be frustrating but they're still happening everyday. Keep at it, be patient but persistent and when an opportunity presents itself jump on it. Good luck!
@Dallon Schultz Thanks for the reply! Unfortunately, I'm on the list of out-of-state buyers! I work with a group of high net worth individuals and we are looking to expand here, but it sounds like the movers and shakers are all known and doing deals in person.
Currently in Jacksonville there are zero multifams over 8 units in the Northeast Florida regional MLS. An owner so much as thinks about selling and bird dogs chase after him like that Pirates of the Caribbean meme. SFHs with rehab, there are tons of those, but all GCs are maxxed out. It's rough for us middle-men too.
@Zachary Jensen - Everyone wants what you're looking for.
How can you make yourself stand out? Or at the very least, how can you build relationships so that your name is in the hat when a deal comes up?
Joint Ventures with experienced people is likely your fastest way into the door
@Zachary Jensen If I have any deals, I'm either going to take it down myself or send it to my most trusted/reliable past client network first. I think a lot of other brokers would echo the same sentiment. If you want to get "deals" in this market, I firmly believe you need to put in the time and money to go directly to the sellers, thereby cutting out the other middlemen. This includes cold calling and direct mailings. My partner and I just finished a nice flip in Scottsdale that we got by dealing directly with the seller. It should net us about 20% ROI.
@Ronald Allen Barney That is exactly why you do "alterations and repairs" no need for a GC as many are terrible business people. Postcards and phone calls with people interested in selling. Targeting those areas of town that you want to be an expert in, its the best and only way to really build a pipeline of business. Driving for dollars is so true now too, when you are working in one or two areas. You do it daily/weekly and you get to meet people as you walk the neighborhood. People see you as their neighbor, not one of the deadbeats sending them postcards out the wazoo.
I do think it's a numbers game. Talk to more brokers, underwrite more deals. You can even go direct to seller - let them save that 6%.
I'm looking for 5 - 20 units and don't mind building them if needed if anyone sees something!
@Zachary Jensen this is going to sound harsh but what are you doing differently than anybody else to find them?
The deals that are brought to me are due to seasoned, long-term relationships with brokers, just as @Ryan Swan says.
In my experience, the key to getting great deals sent to you is make brokers as much $$$ as you possibly can. We are all humans following the past of least resistance. Make them money and they will come to you first.