I have posted a couple of times on this topic and have received some great and valuable info so would like to say I appreciate the input. My question today is i have my real estate license now and I would like to ask were do I search to find a good deal that maybe a syndicator would be willing to consider. Loopnet has some good deals I think and just started networking with other realtors so that will help. Is breaking into this area of real estate as hard as it seems?
@Dennis Johnson , it sounds like you are trying to sell listings to multi-family buyers? If that is the case I would reach out to several of the brokerages in town that sell commercial/apartment buildings (ARA, Marcus & Millichap, CBRE, Colliers, etc) and try to get on their team. You could also call brokers that have listings on loopnet to see if they need agents. In the commercial world you are building relationship with property owners to get them to sell to your buyers.
@Dennis Johnson congrats on getting you license!
We are at the top of the cycle which means it's a sellers market. A few things to realize about being a commercial agent in this type of market:
- Finding good deals is really hard
- commercial brokers font like to share their commissions
- Loopnet has NO good deals
Build connections with people that work in all aspects of the business as well as consider working on a direct mailer campaign to owners of multifamily in your market.
I can tell you right now that successful commercial realtors have their own rules and do not even want to cooperate with experienced residential brokers(not realtors). Calls made are often not returned. They tell you if you bring in a client to purchase you will get a referral fee not a commission because you are not a member of blah blah association. $ is split with their league members. Some listings the agent has a lot to say how to keep all if not most dough. Most brokers want a CCIM, Mba (in our area Ivy League).
Also realtors age has a lot to do with it. They prefer young tigers. Joe Gozlan is right. You pay your dues and harvest comes way later. Get your broker license and start CCIM designation.
1. Most deals end up at LoopNet are not good anymore. I asked the commercial agents to let me know the off-market deals first.
2. "just started networking with other realtors". Don't waste your time with residential relators, most of them don't know anything about commercial.
3. I would network with commercial lenders, brokers, apartment owners etc.
I appreciate the feed back, @Todd Dexheimer , @Joseph Gozlan , @Rob Beardsley my intentions is to actually purchase multifamily units as an investor getting the licenses was to assist in learning the ins and out of the business more. I was just looking at working with some that has done a syndication, i can start on a small scale and work up to larger ones.
@Dennis Johnson Villa Rica is a bit off the beaten track and away from the craziness of Atlanta, the same as my market but you still probably will not find any good deals straight off Loopnet. I occasionally check that far from me for instance and I'm sure there's a few people like me in Villa Rica or close by and would jump on any truly good deal that popped onto Loopnet.
Here's a few ideas for you though.
1) A lot of the smaller properties will actually show up on the mls because they are listed by a residential broker without a loopnet subscription. So look there too. There is a multi-family search option.
2) Take a hard look at anything on Loopnet or the MLS that has been there for a long time. Many sellers have unrealistic price expectations but they get better when it has been sitting there 6 months plus. That's where you call the listing agent/broker and tell them what you think it's really worth and see if they will talk to their client about it.
3) Villa Rica is not a big town. Drive around and find all of the properties you would like to buy. Look them up on your county GIS site to find the owners, send them a letter and ask if they want to sell. If you're an agent this is a good way to get listings even if it's not something you want to buy personally.
4) There's usually a zoning classification specifically for multifamilies. Find out the areas they are in by looking at GIS or talking to someone in the county map room. Once you know those areas drive and door knock. You will mostly meet tenants but they know who their landlord or property manager is.
5) If you find a really good deal call me :)
@Jeff Kehl that is some real good info for a small area I can build a good foundation on that info so I appreciate that, if you have a minute give me a call would enjoy the conversation we travel through Rome once a month.
@Dennis Johnson not to sugar coat to but it’s an unfair business.
I was looking at a 120 something cardinal style home in villa rica a month ago. It was right next to the backside of the mall but the numbers did not work to be able to pay for syndication expenses. Might want to check it out just to see what a decent deal was that ultimately did not pencil.
@Lane Kawaoka can you remember an address or a point of contact for that property possibly