Buyers Guide to Working with Brokers

Author

David Wallace
May 07, 2024 • Estimated Reading Time: 4 minutes

If you are serious about buying multifamily assets and growing your portfolio, you will undoubtedly be interacting with commercial brokers.

By knowing how to work with brokers, you can leverage their services to see more opportunities and ultimately source your next investment.

It’s not just about being on the broker’s calling list. It’s about being at the top of their list so that you see deals before your competition. To do that, you need to get to know the brokers in your market so they think of you first when new deals become available.

Many buyers get this wrong by focusing more on the transaction than the relationship.

The key to finding great investments is to look at as many opportunities as possible. Some of the best buyers I know turn down 50 deals for every asset they buy. It’s a volume game.

Having connections with brokers in your market massively increases your field of vision.

By enacting the seven tips below, you will benefit in two ways.

  1. Brokers will take you more seriously. Once you have the attention of the top brokers in your market, you will see acquisition opportunities earlier in the listing cycle and position yourself to buy properties before your competition.

  2. You will gain valuable knowledge about your market. Brokers talk to everyone. They understand the current market better than anyone. That knowledge can be yours if you build relationships with the brokers in your area.

Get to Know Brokers - 7 Tips

  • Answer your phone. Most phone calls never get returned. You would be surprised how much more memorable you become by simply answering your phone or returning their calls.

  • Share information. When a broker calls, they will ask about your properties and investment goals. Share some information about your situation then use the time to ask about the market.

  • Meet in person. Meeting in person builds trust and makes you more memorable. Imagine which buyer comes to mind first - the one who calls once a quarter or the one who gets together with brokers for a coffee or a beer.

  • Realistic acquisition criteria. When brokers hear vague or unrealistic acquisition goals, they are quick to write those buyers off as unmotivated. Buyers with specific and actionable criteria will always be at the top of their buyer list.

  • Don’t be a tire kicker. Don’t act interested in a deal if it’s not something you could realistically purchase. Brokers have developed a sixth sense for detecting fakers. If you waste the broker's time, you damage your reputation and they will hesitate to call you about the next opportunity.

  • Avoid unnecessary re-trades. Brokers hate it when a buyer asks for a price reduction while under contract, especially if the reasoning for the re-trade is unreasonable. Brokers vouch for buyers to make the seller feel confident the deal will close. If you develop a reputation for unnecessary re-trading, you will see fewer opportunities in the future.

  • Provide honest feedback. If you’re not interested in a deal, whatever the reason, communicate your feedback to the broker. It helps them understand what type of deals to bring you in the future.

I have worked with multifamily investors of all sizes, from first-time buyers to owners with thousands of units.

I’ve found that the largest owners are typically more receptive to calls from brokers. They have learned the lessons above and have established relationships with the top brokers in their market.

Put these seven tips into practice to connect with the brokers in your market. Then watch as more investment opportunities become available to you.

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