How To Win Over A Real Estate Broker For OFF Market Deals?

13 Replies

Hello BP,

Just a pretty simple question that I have, that I have some answers too, but would also like to hear other ideas and perspectives in the large multi family and apartment investing space. 

To me, I see it kind of hard to build relationships with brokers out of state, but its obviously possible. How are you operators winning over real estate brokers to send you off market deals? Obviously some trust has to be built, but how did that relationship form? And what did you to form that relationship to help your business?

Any tips/advice appreciates. Thank you!

Originally posted by @Jordan Santiago :

Hello BP,

Just a pretty simple question that I have, that I have some answers too, but would also like to hear other ideas and perspectives in the large multi family and apartment investing space. 

To me, I see it kind of hard to build relationships with brokers out of state, but its obviously possible. How are you operators winning over real estate brokers to send you off market deals? Obviously some trust has to be built, but how did that relationship form? And what did you to form that relationship to help your business?

Any tips/advice appreciates. Thank you!

 The number one thing is to be a closer and be easy to work with. They want to know you know what your doing and are experienced so make sure you know your stuff and ask good questions that convey your expertise

Originally posted by @Greg Dickerson :
Originally posted by @Jordan Santiago:

Hello BP,

Just a pretty simple question that I have, that I have some answers too, but would also like to hear other ideas and perspectives in the large multi family and apartment investing space. 

To me, I see it kind of hard to build relationships with brokers out of state, but its obviously possible. How are you operators winning over real estate brokers to send you off market deals? Obviously some trust has to be built, but how did that relationship form? And what did you to form that relationship to help your business?

Any tips/advice appreciates. Thank you!

 The number one thing is to be a closer and be easy to work with. They want to know you know what your doing and are experienced so make sure you know your stuff and ask good questions that convey your expertise

Thank you Greg! Your input on all of my posts has been extremely helpful. Much appreciated. 

 

Showing them that youre serious and you have the funds to back it up. Telling them specific metrics of what you want in a deal as opposed to just 'as long as the numbers work'. Ability to be responsive and give valid feedback about the properties/opportunities given, you dont have to like every deal they send but constructive feedback is imperative for them to narrow down your search and be more effective. 

@Jordan Santiago  

Couple things I would suggest: 

  • Don't waste their time
  • Be a serious buyer
  • Have the ability to perform (i.e. cash or pre-qualified financing in place)
  • Do your own research in addition to what they are doing for you. 
  • Don't be lazy. Don't ask them questions like "how close is Property XYZ to the grocery store?" when tools like Gmaps can tell you the answer under 60 seconds. 
  • When you don't know something, ask. Don't wait to last minute and say "what? I didn't know I was supposed to do that!" 
  • Think a few steps ahead of what you, the buyer, are doing. Don't make her/him wait b/c you didn't do a simple administrative task. 
  • Know what you want. Don't change from 400k AirBNB rentals yielding 50k/yr GRI to 50k single family flips after s/he has done weeks of searching and driving around for you.
  • If you don't know what you want, simply say you're looking to make some investments and you would like his/her advice on best way(s) to deploy your capital. 

As both an out of state investor and a realtor who works with out of state investors all the time, I have built my share of both relationships. 

The big thing is the ability to complete the transaction. However, once you become a repeat client and s/he knows your word is better than the average investor, and you're making >200k investments with a 3% commission, I'd wager they will go above & beyond the normal call of duty to feed you deals. 

One caveat: a lot of brokers/realtors will be required to disclose all deals by 2020 to eliminate the "off-market" stigma. We're supposed to be clear & transparent, so what is off-market now will likely change for most people in the near future. 

Originally posted by @Lien Vuong :

Showing them that youre serious and you have the funds to back it up. Telling them specific metrics of what you want in a deal as opposed to just 'as long as the numbers work'. Ability to be responsive and give valid feedback about the properties/opportunities given, you dont have to like every deal they send but constructive feedback is imperative for them to narrow down your search and be more effective. 

 Hey Lien, thanks for the response. Sending back constructive feedback to the brokers I've been speaking with on why I don't like the deal is something I have already started to do, but is still great advice. Showing them the funds to back it up is something I cannot do at the moment. I now have verbal commitments of $5,000,000 that I follow up with every week or two to make sure they are still ready, which they are. Any advice for that? Just let them know I am raising the capital?

Originally posted by @Matt Castle :

@Jordan Santiago 

Couple things I would suggest: 

  • Don't waste their time
  • Be a serious buyer
  • Have the ability to perform (i.e. cash or pre-qualified financing in place)
  • Do your own research in addition to what they are doing for you. 
  • Don't be lazy. Don't ask them questions like "how close is Property XYZ to the grocery store?" when tools like Gmaps can tell you the answer under 60 seconds. 
  • When you don't know something, ask. Don't wait to last minute and say "what? I didn't know I was supposed to do that!" 
  • Think a few steps ahead of what you, the buyer, are doing. Don't make her/him wait b/c you didn't do a simple administrative task. 
  • Know what you want. Don't change from 400k AirBNB rentals yielding 50k/yr GRI to 50k single family flips after s/he has done weeks of searching and driving around for you.
  • If you don't know what you want, simply say you're looking to make some investments and you would like his/her advice on best way(s) to deploy your capital. 

As both an out of state investor and a realtor who works with out of state investors all the time, I have built my share of both relationships. 

The big thing is the ability to complete the transaction. However, once you become a repeat client and s/he knows your word is better than the average investor, and you're making >200k investments with a 3% commission, I'd wager they will go above & beyond the normal call of duty to feed you deals. 

One caveat: a lot of brokers/realtors will be required to disclose all deals by 2020 to eliminate the "off-market" stigma. We're supposed to be clear & transparent, so what is off-market now will likely change for most people in the near future. 

 Hey Matt, thanks for the response. This is awesome input with a lot of important, and helpful points. I am confident in doing all that you mentioned. Appreciate it!

By the way, you being a realtor, if you are in the commercial space I would love to connect with you and do some business.

Be consistent. Connect with them every week or two via phone, text, email, social media. Stay top of mind at all times. Brokers are giving the best deals to people that they hear from. If you aren't communicating with them, they will not think of you. 

Originally posted by @Todd Dexheimer :

Be consistent. Connect with them every week or two via phone, text, email, social media. Stay top of mind at all times. Brokers are giving the best deals to people that they hear from. If you aren't communicating with them, they will not think of you. 

 Thank you so much Todd, thats great advice.

I would want to see proof of funds before you start chasing $5mm deals around. Solidify your investors in a more meaningful way to show agents you're serious and can execute. 


Hypnosis and hookers harry buffaloes.

In all seriousness, being crystal clear on what you want is the most important thing. If you can articulate your criteria (e.g. 100-150 unis, B Class area, avg. household income of $60-90k, no more than 50% renovated, etc), they will know exactly what does and doesn't fit your criteria. Once you do this, demonstrate your ability to close if they can bring you this type of property. Lastly, make sure you stay top of mind and follow up with them.

If you are out of market, make a trip and tell them you are coming in town to see properties. 

@Jordan Santiago consistent follow up with the broker to show you are serious. What will help win them over is you taking a trip to that market to meet with them in person. It's a big sacrifice, but a sacrifice well worth it. This will set you apart from other investors who are vying for their attention as well

Originally posted by @Tj Hines :

@Jordan Santiago consistent follow up with the broker to show you are serious. What will help win them over is you taking a trip to that market to meet with them in person. It's a big sacrifice, but a sacrifice well worth it. This will set you apart from other investors who are vying for their attention as well

Hey Tj, thanks for the response and really helpful advice as always. Thank you my friend!