Multifamily investors know the value of networking. Thus, when it comes to finding the best deals in a hot market, connecting with the right people is highly essential, especially if you’re a syndication sponsor.
For one, it’s important to build relationships and keep in constant communication with brokers. Let’s look at a few of the most obvious reasons for that:
Why you need a broker
If you have the capital to spend, you probably want to hunt for deals by yourself and engage sellers directly. Though this may sound practical, it doesn’t actually prepare you for the most complex part of finding and negotiating great deals.
Research is important and it doesn’t take overnight to map out the market and identify the properties you might want to acquire. That is why working with brokers is so crucial.
Through a broker, you are able to get a better feel of the market, allowing you to narrow your focus on properties that rightly match your criteria.
A broker manages a network of local property developers and industry insiders who can provide information on the latest rent trends, current market supply, as well as market growth projections, which can help determine your cash flow.
Apart from having an in-depth understanding of the local multifamily market, a broker is also equipped with the knowledge and expertise needed to negotiate better terms with sellers. In other words, a broker can help you reduce your acquisition costs.
How to Grow Your Network of Brokers
Now that we have understood the importance of working with multifamily brokers, let us consider a few strategies for building a network.
The first thing you can do is to ask for referrals from the right institutions. Local chambers of commerce, for instance, possess a list of brokers you might want to touch base with. Online platforms like BiggerPockets are also a great source of valuable connections. Simply create an account and start adding brokers specializing in specific asset classes and operating in specific locations. It also helps to participate in forums where you can pitch your next venture to brokers who can provide you commercial property listings.
You can also join local and national real estate events such as conferences, seminars, and workshops. It’s only a matter of introducing yourself as a real estate investor and listing down the neighborhoods where you’re operating so you can attract the right professionals. At any rate, your goal is to be included in the distribution mailing lists of these brokers and to receive updates on upcoming properties for sale. It doesn’t matter if they’re sending you off-market deals, so long as they keep you in mind.
If you want to learn more about reaching out to brokers, send us a note at firstname.lastname@example.org.