Hello Apartment Investors! Quick question. Our team is working on syndicating our first multifamily deal. We have developed a relationship with a few brokers in our area and we're ready to start submitting LOIs. I'm wondering if I should contact/send my LOI to the listing broker or do I work with the broker that I've developed a relationship with? Do I submit my cover letter and LOI to listing agents or send to the broker we know, and is sending us deals, to represent us? Seems like this should be common knowledge, but I can't seem to figure this one out, and I don't want to waste anyone's time. Thanks in advance!
@Thomas Fawcett Always go straight to the listing broker. Only submit the LOI to the brokers you know if they brought you the deal or if you intend to use a buyer's broker (meaning that you'll likely be paying their commission out of your pocket).
@Thomas Fawcett please, please, please send the LOI to the broker that provided the deal to you. if you received it from the listing broker, then go directly to them. As a Broker, the one thing that will ruin a relationship is if you go to the LB and don't use the person who found the deal. I think is a big reason why the big turn off lately from working with syndicators.
Sounds like you've run across the multitude of 'brokers' who just take the listing brokers' Offering Memorandums, regularly scrub them of all data to make it look like it's their listing, claim it's off market, and then make you sign a CA that says you will pay them a fee if you close. Almost 100% of the time this was probably a publicly listed deal anyway. So just be careful when dealing with these folks.
Thanks to all! I appreciate the feedback.