Loopnet: Why is it called "where good deals go to die?"

6 Replies

As I newbie, I often spend a good amount of time looking for real estate information and deals on multi-family. I have been to forums in person and on line, and they all say the same thing about LoopNet, which is "good deals go there to die." Now I have grown fond of LoopNet and I think they have good deals on  multi -unit investments. What I have notice is that some properties linger longer than others, but isn't that the case with any type of properties. I have also looked on Redfin, and Property shark. but I always go back to LoopNet. I live in Brooklyn, NY and property here is far from reasonable. I just want a better understanding as to why LoopNet has this title. As a beginner, with little capital, LoopNet has the most amount of deals within my reach. Looking for insight. Thank you 

Many of the best deals never hit LoopNet.    The commercial brokers will first shop the good deals to buyers they know w/ a demonstrated history of closing on their offers.   The less attractive deals, and ones that don't get snatched up by preferred clients, will end up on LoopNet.   If you want a better shot at the most attractive investment opportunities, it's worth developing relationships w/ local agents representing the biggest MF brokers in your area.

@Issa Rice

Loopnet is an excellent tool to identify new brokers to call.

Deals on a long time might be willing to accept a lower offer.

Paul

I agree with other comments here generally. However, we were able to find a motivated seller who was selling directly(without a broker) and very willing to negotiate. But that was the only one deal I found amongst a lot of the others I saw.

Chandra

In most cases, deals on Loopnet are either "stale" or not the greatest deal on the market.  The best deals are usually shopped by the Listing Broker to his preferred buyers who can close.  I agree with many of the people  here that you should reach out the a local multifamily broker personally.  Take them out to coffee, build a relationship, and show that you are serious in purchasing.  Most of all, be honest with them.  However, there are some good deals on Loopnet.  Many serious sellers require the Listing Brokers to expose it on Loopnet when signing the agreement.  This insures that these brokers don't keep it in-house and try to fit their own buyer into it.  Thus, if you identify a good deal on Loopnet, I would call that broker directly and see what the seller's motivation is.  Maybe there is something you can bring of value to them when sending in an offer (ie fast close, extending close of escrow to accommodate a 1031 exchange etc).  Don't fully give up on Loopnet deal, just make sure to call the Listing Broker directly to get more information.  

In most cases, deals on Loopnet are either "stale" or not the greatest deal on the market.  The best deals are usually shopped by the Listing Broker to his preferred buyers who can close.  I agree with many of the people  here that you should reach out the a local multifamily broker personally.  Take them out to coffee, build a relationship, and show that you are serious in purchasing (don't you want to be that buyer that they call when they have a great deal?).  Most of all, be honest with them.  However, there are some good deals on Loopnet.  Many serious sellers require the Listing Brokers to expose it on Loopnet when signing the agreement.  This insures that these brokers don't keep it in-house and try to fit their own buyer into it.  Thus, if you identify a good deal on Loopnet, I would call that broker directly and see what the seller's motivation is.  Maybe there is something you can bring of value to them when sending in an offer (ie fast close, extending close of escrow to accommodate a 1031 exchange etc).  Don't fully give up on Loopnet deal, just make sure to call the Listing Broker directly to get more information.  

I don't have plans on giving up on LoopNet,  I wanted a better understanding to the label that it has. I have reached out to some of the brokers and a few have sent me listing that are not on LoopNet.

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