Trying to build exclusive list for large scale investors

Realtor · Chattanooga, TN · Member since 2018 · 34 posts · 36 votes

I am looking to build a healthy network of commercial grade unrepresented investors that would like to receive exclusive off market properties on a larger scale ($1mil+). I get deals mostly in TN and GA, but if there is a specific area someone is needing I have ways of looking for that too. I’ve had a difficult time with most of the investors I come across not fitting into this category, so I am just trying to figure out where to find these kind of investors. Does anyone know of any specific forums or websites out there for investors looking to do larger scale deals? (ie: tenant occupied shopping centers, large scale MF 100+ units, etc.). I just want to make sure I am getting these deals to the right investors with the financial means to do them.

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Joel OwensBusiness Member

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Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes

You build your network over time and it takes a lot of hard work.

You do not just flip a switch and all of sudden a bunch of high net worth investors start working with you.

I have clients with net worth over 100 million that are individuals and clients worth 1 million so the range of what they buy varies in price range.

If you truly have something not listed on the market then reach out to your colleagues as they might have someone in their network with interest.

I have clients right now that can take down no limit on multifamily in price. They ONLY want off market properties. They do not want rounds of bidding and 20 offers to go against for a 5% chance and waste months of time. If you were worth hundreds of millions would you want to waste time with that stuff? Of course not. You want to buy but not if it's a major inconvenience and time waste. I find many touting that something is off market is truly not.

1 million is a small price point in commercial like a 50k house in residential. For the bigger buyers the scale is too small to have interest for them.

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Greg Dickerson
Developer · Charlottesville, VA · Member since 2018 · 4k+ posts · 4k+ votes
6y
Originally posted by @Heidi Rau:
I am looking to build a healthy network of commercial grade unrepresented investors that would like to receive exclusive off market properties on a larger scale ($1mil+). I get deals mostly in TN and GA, but if there is a specific area someone is needing I have ways of looking for that too. I’ve had a difficult time with most of the investors I come across not fitting into this category, so I am just trying to figure out where to find these kind of investors. Does anyone know of any specific forums or websites out there for investors looking to do larger scale deals? (ie: tenant occupied shopping centers, large scale MF 100+ units, etc.). I just want to make sure I am getting these deals to the right investors with the financial means to do them.

The best thing to do is post your deals on LoopNet and CREXI and they will find you. Other than that networking is a great way as well as Facebook groups, LinkedIn, and meet ups. For Facebook and meetups you need to be specific in your search.
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Heidi Rau
OP
Realtor · Chattanooga, TN · Member since 2018 · 34 posts · 36 votes
6y
Thanks for the reply Greg. I will probably use my membership to post them on the marketplace here today. The sellers I deal with don't want them on LoopNet and CREXI though. I am trying to procure the types of investor buyers needed for that market by direct/personal relationships. That way I have a database of people I know are serious and capable that I can send deals to as I get them.
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Joel OwensBusiness Member
Moderator
Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
6y
You build your network over time and it takes a lot of hard work.
You do not just flip a switch and all of sudden a bunch of high net worth investors start working with you.
I have clients with net worth over 100 million that are individuals and clients worth 1 million so the range of what they buy varies in price range.
If you truly have something not listed on the market then reach out to your colleagues as they might have someone in their network with interest.
I have clients right now that can take down no limit on multifamily in price. They ONLY want off market properties. They do not want rounds of bidding and 20 offers to go against for a 5% chance and waste months of time. If you were worth hundreds of millions would you want to waste time with that stuff? Of course not. You want to buy but not if it's a major inconvenience and time waste. I find many touting that something is off market is truly not.
1 million is a small price point in commercial like a 50k house in residential. For the bigger buyers the scale is too small to have interest for them.
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Heidi Rau
OP
Realtor · Chattanooga, TN · Member since 2018 · 34 posts · 36 votes
6y
Joel I appreciate your input, but I am just looking for advice on this. 1mil is just the bottom end of what I am speaking of. I have been in the industry for 4 years and have built up a network of smaller scale investors, but I have recently been connected in with larger scale opportunities (anything over 1mil in Chattanooga is considered larger scale anyways for our local investors, but we are in a different market than you I assume). I am just looking for advice on where to find larger scale investors for these kind of transactions, as there are not many in my city (believe me.. I have met the majority of them here through networking events and just working in the industry itself. I am in every investor meetup group in Chattanooga.). There are three I am currently working. The smallest is a 1.3mil deal, though my partner just listed it, so it is no longer off market. The other two are still off market and are 7.5mil and 3.7mil deals. Still not astronomically high, but higher than your standard buy-and-hold or flip investor has the means to work with, which is what our local investor makeup looks like.
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Jai Reddy
Edmond, OK · Member since 2012 · 456 posts · 270 votes
6y
@Heidi Rau
Here’s what I noticed a couple brokers did in my market. Put a property on Loopnet with asking price around >2M. Potential high networth investors make contact with listing broker, and obviously one investor gets it under contract soon. At that point, broker has a handful of high networth investors to follow up with to understand what they are looking for, and builds a list and sends them off market properties
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Heidi Rau
OP
Realtor · Chattanooga, TN · Member since 2018 · 34 posts · 36 votes
6y
Originally posted by @Jai Reddy:
@Heidi Rau
Here’s what I noticed a couple brokers did in my market. Put a property on Loopnet with asking price around >2M. Potential high networth investors make contact with listing broker, and obviously one investor gets it under contract soon. At that point, broker has a handful of high networth investors to follow up with to understand what they are looking for, and builds a list and sends them off market properties

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Heidi Rau
OP
Realtor · Chattanooga, TN · Member since 2018 · 34 posts · 36 votes
6y
Thank you Jai. They are not wanting these on Loopnet, but I think I am going to just try to get them to allow me to post there at least as that seems to be the common thread.
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Jai Reddy
Edmond, OK · Member since 2012 · 456 posts · 270 votes
6y
Maybe get an OK from one Seller to post on CREXI and Loopnet, enlightenment to generate deep pocketed Buyers to reach out to you
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Don KonipolBusiness Member
Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
6y
@Joel Owens
Obviously, the OP and other posters missed your point completely.
They think there’s a formula to follow and in 3 months of following said formula they’ll have a list of well financed, eager, experienced, quick decision making investors who trust their judgement and will automatically be interested in any deal they present them with.
I do have such investors. Many have been investing with me since 2001. Almost all have invested in multiple deals with me, in both my previous hard money funds, and many in almost every equity and debt deal I make available. ( I vet every deal, and invest my own money in each syndication I run). I find it usually takes three or four successful deals, or about 3 to 4 years investing with me, for an investor to become very comfortable. My investor group has been built over a 20 year period.
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Lalit R.
Rental Property Investor · Toronto, ON · Member since 2017 · 61 posts · 16 votes
6y
Originally posted by @Heidi Rau:
I am looking to build a healthy network of commercial grade unrepresented investors that would like to receive exclusive off market properties on a larger scale ($1mil+). I get deals mostly in TN and GA, but if there is a specific area someone is needing I have ways of looking for that too. I’ve had a difficult time with most of the investors I come across not fitting into this category, so I am just trying to figure out where to find these kind of investors. Does anyone know of any specific forums or websites out there for investors looking to do larger scale deals? (ie: tenant occupied shopping centers, large scale MF 100+ units, etc.). I just want to make sure I am getting these deals to the right investors with the financial means to do them.

Can you share a few sample deals you closed in last 3 months?

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