Learn to Talk With Multifamily Brokers

We are going to talk about how to have conversations with brokers and it seems more difficult than it is, but if you talk to brokers they're going to say, they have maybe 20 unsolicited phone calls a week and if you're thinking that you're going to say, wow, well if they're getting just 20 calls of people out there saying how can I buy an apartment building or I want to buy an apartment building, how are you going to stand out if they're having all these 20 calls a week.

Let’s see if we can find a solution, how you're going to be that person that stands out and what I have found that's worked for me and our team is one, being specific with what we want and to follow up. And really it's that simple, so let's just put out there what a lot of people are doing and maybe we have done in the past and maybe our team has, but what doesn't work and that is, “hi mister broker, hi mrs. broker, I am interested in buying real estate or apartment buildings” and if the brokers on the other line, the broker is going to go, “okay” and there might be silence and that was probably a little bit uncomfortable and maybe some people just thought it went dead, but from a broker's perspective they're going to be like, “okay, great what does that do for me”.

Because remember, brokers are here too, one, great relationships and to close deals. And that's how they make money and if you realize it from their perspective they're going to say, “oh, I just had someone come up and really just give me no guidance for what they want”, but if you get on the phone with a broker and say, “Hi, this is a Jason from XYZ, I'm actively engaged in growing into this market and I'm working with a group that has a couple of hundred units and we're looking to expand into the south side of this submarket, we want to have 75 to 150 units, B and C built, between 1975 and 210 we're willing to spend a little bit more on upside, so we're willing to buy some stuff with hair on it and are not scared of all owner paid utility property, we don't mind section eight, up to twenty percent and we're actively searching in acquisition mode and we have money to put to work today”.

Does that give the broker some guidance that we've maybe done some due diligence on the type of properties that might be available in the market, maybe the year, is that type of property is available and ideally the size of properties, well maybe my speech was a little blur because I'm just spitballing right now, but that at least gives some guidance? So what you want to have is an elevator pitch, which can give to the brokers and after you get that pitch, maybe the broker send you nothing, so what are you going to do in three weeks you're going send a plane email to that broker just stating again, “thanks so much for the call here, again is what I'm looking for, 75 to 250 units B to C assets, build 1975 to 210, utility paid property is fine and sectioning is fine up to 20 percent if there's anything that stands out or comes upon I'd love to take a look at it, we'll give you some feedback”. And with that, maybe you get something and maybe it's a Class A twelve-unit property, completely not what you asked for, but you got something, so don't just say, great and throw it to the side, look at it, analyze it, give it a quick run-through, give some guidance back, “hello missus or mister broker, thanks so much for sending this property, it doesn't fit our criteria for the following reasons a, b, c, d, but thank you so much for sending, we look forward to seeing future opportunities”.

I guarantee you if you continue to do this and do the follow up with this broker every couple weeks, whether it be, a phone call or an email send, a hello, that eventually will be standing out, that one, you're respectful of their time because you're giving them guidance with what you want and two you're responding. I think it's something off about twenty out of every twenty people that reached out to a broker if you ask them maybe if they get a deal set out, only two or three are going respond, well maybe a lot of people are just writing off the deal, those two or three people are a lot more traction and be able to create that relationship with a broker because they're responding to them, they're giving clarification, their brokers are asking questions, so be in the minority on this one. Stand out and get back to people and really just follow up, it's not hard, it really isn't, just be specific and follow up all right hope, this gives you some guidance take go out there, do some damage and make it happen.