In this episode of The Darin Batchelder Multifamily Real Estate Investing Show, Darin discusses what he would have done differently in his first year in the multifamily syndication industry. He shares insights on building relationships with brokers and how this can impact your ability to land deals. Darin also touches on the importance of making a strong first impression to expand your network of deal sources. Tune in to hear Darin's valuable tips for success in the multifamily real estate investing space.
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- 01:47 After first syndication deal, considered underwriting deals in person.
- 02:50 Brokers control 80% of properties.
What Darin Would Have Done Different
Initial Approach to Syndication
In the beginning stages of his multifamily syndication journey, Darin targeted a specific segment of the market in the Dallas-Fort Worth area. He focused on properties ranging from 60 to 100 units. His tactic was to meticulously analyze every deal within this bracket. Hence he prioritized those that indicated the likelihood of desirable returns. Darin recognized the crucial role of due diligence in evaluating potential investments. Plus, how a strategic and focused underwriting process could pinpoint opportunities that align with his investment criteria. By zeroing in on properties of a certain size and projected performance, he hoped to maximize the efficiency of his investment endeavors and surface the most promising syndication opportunities.
The Broker Relationship Dynamic
Upon reflection, Darin identified a pivotal aspect of property acquisition. The power wielded by brokers in the multifamily real estate market. He acknowledged that brokers manage a majority of properties and therefore hold the keys to many viable investment opportunities. Darin noted the significance of first impressions and the lasting impact they can make when meeting with brokers. During a property tour, he suggested, both the investor and the broker are appraising each other. And a favorable impression could lead a broker to advocate on the investor's behalf within their professional circle. Darin's strategy aimed to tap into this dynamic by arranging consecutive property tours with different brokers. Allowing him to cultivate a network of brokers alert to his investment profile and ready to extend potentially lucrative deals.
Real Estate Strategy: "When you go on that first property tour with that broker that you just met for the first time, you are sizing up the broker and the broker is sizing you up." — Darin
Broker Relationship Done Different
Darin highlights an often underappreciated aspect of the multifamily syndication business. The significance of fostering strong relationships with brokers. He reflects on his early experiences and stresses that brokers essentially gatekeep the realm of high-scale multifamily properties. By making a conscious effort to establish connections with key brokerage houses, Darin points out that syndicators can substantially increase their visibility and credibility in the market. He recommends using the first few months to deliberately engage with brokers during property tours to leave a lasting impression. When brokers perceive a new syndicator as serious and capable, they become a valuable advocate within their firms, increasing the syndicator’s access to potential deals.