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May 29, 2024

Quick Guide: Attracting Cash-flowing Apartment Deals with Minimal Time and Money

Your network is your net worth in real estate. Learn effective strategies for connecting with multifamily property owners, navigating due diligence, and closing deals with urgency and respect

Your network is your net worth.

This a phrase my mentor has always said and it couldn’t be more true and relevant to the real estate business. Like any business, no matter how good your product is, no one will buy from someone they don’t know or like you.

The quickest way to find owners and multifamily properties

  • Data Broker service
  • Call and contact owners

Be easy to do business with

Sounds obvious right? Well, many syndicators are NOT easy to do business with and it costs them millions in transactions over the lifetime of their career.

Surprisingly enough, many investors let the due diligence phase expire which does two things

  • Makes you lose out on a lot of money
  • You start to build a reputation as someone who makes it difficult to do deals with

The word for sure gets around. When good deals land on the table of the broker, you won’t be on his/her mind. It’s imperative for you to respect people’s time and to act on opportunities like this with urgency.

I’d strongly recommend that you notify the seller/broker the day you sign off on the due diligence and that you are working on closing the deal. This will help you stand out and gain respect. If you get emails and phone calls, you don’t have to answer them right away but you should have them answered within 24 hours.

Be respectful when negotiating

Negotiating is expected in real estate transactions but being a nitpick about it will not make you many friends either.  Don’t become a retrader. This person will agree to a price on a property and then come back to the broker with a lower offer due to something trivial like, a broken kitchen cabinet or a stains on the carpet.

Now if you find out that the property will need some serious repairs or issues that will cut into your long term profits then go all for it.

This shouldn’t occur often if you do your timely due diligence ;).

Stand on business

Stand by your word at all times. If you say you’re going to do something, then do it. If you say you’re going to make an offer by 5pm today, do it. If something comes up that causes you to miss the 5pm notice, then let the broker/seller know. These behaviors don’t make you money directly but will gain you a lot of respect. I myself respect those who stand by their word, even when its not necessarily in my favor.

Build relationships with apartment and multifamily brokers.

These folks are going to be your best friend when it comes to getting the best deals around. They have spent many years (and decades even) to get them where they are at today. I’d advise you to be very respectful of their time. Don’t expect to get the best deals from them of that bat. No one will just give their best deals to someone they don’t even know.

I’d recommend starting locally. Look up brokers in your area that specialize in the types of properties you’re looking for. Invite them for a coffee and pay for it out of your own pocket.

I know some reading this may say, “I think it’s weird to buy a stranger a coffee!”. We’ll the broker is also thinking this, “I think it’s weird to give my best deal to a stranger”.

See my point there?

I have no problem spending $5 to open up a door to make hundreds of thousands of dollars down the road. By doing this, it puts you in the top 10% of all syndicators. Most people won’t even pick up a phone and call someone.

Here are some things to consider when meeting with a broker

Research

Before the meeting, research the brokers you'll be meeting with. Understand their specialties, past deals, and reputation in the market. This will help you tailor your questions and conversation during the meeting.

Set Clear Objectives

Determine what you want to achieve from the meeting. Are you looking to establish a relationship for future deals? Do you have specific properties or areas you're interested in? Clarifying your objectives will guide the conversation.