How do you message brokers and convince them to add you to their email deals and help you look for deals that fit your criteria?
How would they take you seriously? Or do they just add anyone to their email list as it doesn’t cost them and it maximises their chances of a sale and commission?
Any tips as I believe it is the best way to find good deals.
The key word here is building relationships - I get a few of phonecalls like this: Hey, keep me in mind if you see a great deal! and never hear from them again.
Who do you think I am going to call with a great deal?
@Account Closed all good real estate brokers take leads seriously. If you are trying to break into the commercial space, the brokers will take you more and more seriously the longer you are in the game locally. Make sure you provide feedback as to why you did or did not buy any deals they send your way. As you buy deals, you start seeing more and more deals that brokers handle. In addition, if you stay on their radar over time by asking questions, etc that can help. It is just like building any relationship. It will take time. It took me three years of networking with brokers locally to buy my first larger deal from a commercial broker here in Berwyn. I had written a lot of these guys off early on as I didn't understand how much slower the deal flow would be compared to residential.
The key word here is building relationships - I get a few of phonecalls like this: Hey, keep me in mind if you see a great deal! and never hear from them again.
Who do you think I am going to call with a great deal?
@Account Closed I also approached many with the "I am wanting to learn, would you be willing to meet me for coffee?". I have had success with commercial brokers. And be honest and open. They were all more than happy to tell me about other owners who have thousands of units now, many with no outside money. Pitfalls they have seen. And of course, they are always interested in talking about deals they have. From there, they will typically add you to their email list.
If you are talking about properties that will hit the MLS, then it is much harder. There are thousands of licensed agents in my market, and if it is a 4 family or 6 family, nearly any agent will take that listing. So, while there are agents that try to focus on multi-family rentals, the chances of you having a relationship with the agent listing the one you want is much lower.
How do you message brokers and convince them to add you to their email deals and help you look for deals that fit your criteria?
How would they take you seriously? Or do they just add anyone to their email list as it doesn’t cost them and it maximises their chances of a sale and commission?
Any tips as I believe it is the best way to find good deals.
Taking them out to lunch and start to build relationships with them. That is key.
You can also build a strong relationship with your local property manager. They will help you source deals because they are direct to the seller. You can sweeten the pot and pay them 1%-3% of the purchase price. They will want to find you a deal.
@Account Closed you got to reverse engineer it. I'm sure you've been pitched or marketed to by brands, sales people, marketers etc. What worked and what didn't? It's the same thing here. People want to work with people they like, are going to do what they say, and provide a good relationship.
Start small and grow from there, if you try to start 50 broker relationships tomorrow, you're going to be stretched too thin and inevitably start many of those poorly.
Have a criteria in mind for what you're looking for. If you call and say I want a good deal, they have no idea what that is. Is it 5 units, 50 units, 500 units? Is it a brand new built property that has no headaches, or a distressed property with a ton of upside? Is it in certain areas, markets, neighborhoods, submarkets? And so so much more.
Take every deal they give you and take the time to genuinely look at it and give feedback on why you do or don't like it. Even if you know within 90 seconds it's not for you, really look at it and then call them back and explain why it's not for you.
How do you message brokers and convince them to add you to their email deals and help you look for deals that fit your criteria?
How would they take you seriously? Or do they just add anyone to their email list as it doesn’t cost them and it maximises their chances of a sale and commission?
Any tips as I believe it is the best way to find good deals.
Go meet them for lunch or coffee (pay) and get to know them. This is a human to human business.
@Account Closed I think in most situations, being honest about why you are reaching out and letting them know that you are starting out is the best policy. It is difficult to turn someone down who is openly asking for guidance in a new area. Best of luck.
@Account Closed There should be no reason for them not to add you to their list as it builds and expands their network. The key is not being on their list, the key is to be one of their first phone calls when they get a listing or an off market deal. I do several things to try and build relationships with brokers.
-Call them weekly or bi-weekly to check in (if they do not answer I leave a message and follow up with an email)
-I always get back to them on any deals they send me even if I plan on not making an offer, feedback is critical and if you want them to get back to you on deals then you need to get back to them on the deals they send you
-I meet with brokers face to face in my markets every other week (I do not live in the market I invest in), whether it is touring a property or just having a quick coffee or stopping by their offices to say hi
-Host social gatherings and invite brokers to meet with local investors and buy them drinks. This works well because you introduce them to potential clients and have brokers come to you vs meeting them individually