I started investing in real estate in Q4 2017. In 2018, I started looking for my first multifamily syndication deal. I think back and remember “The Fear Of Talking To Multifamily Brokers!”
How To Build Credibility
What would I say?
What would they be thinking?
How do I build credibility?
When is the perfect time to call them?
Who should I call first?
These are just some of the questions that were going through my mind. Looking back on it now, it seems a little silly to be afraid to talk to brokers but it’s a real fear for many!
Things To Keep In Mind
Here’s some things to keep in mind;
- Brokers are just people trying to do their job
- Many brokers are much younger than you are and many are relatively new to the industry
- Many brokers are nervous to talk to Buyers
- Both Brokers and Buyers are trying to build credibility with each other. It’s not a one way street.
What’s important to the broker;
- Brokers are focused on obtaining listings from property owners
- You may not be a property owner yet but you will be and the broker will want to represent you and your property when you decide to sell down the road
- Brokers are focused on getting the highest price possible for their Seller
- Brokers want to make sure that they help advise the Seller to select a Buying group that has a track record for closing the deal
- The broker only gets paid if the deal closes
Leverage Experience Of Others
As a new or relatively new real estate investor, what can you do to gain credibility with brokers;
- Mentorship Group – One way is to join a multifamily mentorship group. If you are a part of a reputable group, the broker will not just look at your track record but they will also consider their experience with others in that mentorship group. You basically are piggy backing off the experience of others from the group.
- Experienced Partner – Partner with an experienced real estate investor. I’m not sure if this is a true statement but I believe this to be true. Unless you way overpay for a property, the broker will not recommend you unless you are partnered with someone that has a proven track record. When I speak with people, I recommend having a list of five or more very experienced syndicators that have agreed to partner with you if you find the right deal. You need many because the timing may be off for the first one, two or three that you call. They may be involved in another deal, may be focused on other projects, or have many others reasons why the timing is off or the deal doesn’t work for them.
Why do I share this story with you?
Fear can prevent you from taking action. The more you talk to brokers, the more comfortable you will get.
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