MFR direct marketing vs. working through a commercial broker?

1 Reply

I've identified ~50 properties in my target geography that I might like to buy - I asked my commercial real estate broker who typically reaches out to owners whose properties are not being actively marketed, and he said the broker does. However, I'm doubtful that my broker will want to, or will do a good job of, reaching out to all 50 of these owners.

From what I've learned of marketing directly to owners, I was imagining I'd do all the outreach, until such point at the owner was actively conversing with me about selling, at which point I'd start involving my broker.

How are commercial brokers typically involved in marketing to and sourcing sellers "at scale" like I'm describing here?

@Cooper Marcus, with so few properties, I think you'd have better luck with a different approach.

  1. Rank them into ~5 tiers based on your criteria. Hit 1 tier at a time.
  2. Hand write letters to the owners expressing your interest and offer to buy them coffee or lunch. No strings attached. Heck, you'd love to just hear about their experience in the market.
  3. Send the letters via FedEx or UPS. This pretty much guarantees that they'll be opened and read.
  4. Follow up with a phone call after 5-7 business days, if you haven't already heard from them.
  5. Go to coffee / lunch and see what comes out of it.
  6. If there is interest, then engage your broker. If not, stay in touch and keep the relationship with the owner warm. You want to be the first person they think of when they do decide to sell or hear of another property that may be available.

Good luck!

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you