Agent Outreach to find seller finance multifamily deals?

Question

I have a goal of getting 12 owner financing deals for 2025.

I'm currently building a list of 1,000 multifamily agents to do monthly agent outreach to get off-market pocket listings with good creative financing terms. The plan is to have 25-50 conversations per day with agents, make 3 offers a day. And wholesale about 80% of these multifamily deals.

Does anyone have experience doing agent outreach for pocket listings similar to my plan here for multifamily? How successful is this in getting you deals?

Jonathan Greene · Answer

That strategy is not going to work at all. 99 percent of agents don't even know or understand seller financing and will just think it's a scam (which it is most times these calls come in since the caller has no money and therefore is irrelevant to a regular homeowner). There are probably 1/10th the amount of pocket listings that there used to be because of interest rates, but you have a better shot with multifamily homes owned more than 10 years by an out-of-state owner. I would skip all of the agents and go direct. Agents will not have a clue what you are talking about.

Brandon Vukelich · Answer

I'm a MF broker working in the 2-20 unit space. I know seller financing and it isn't clear how you define "good" creative terms. Most sellers I know are stuck in 2021 pricing but want 2024 rates. If I have a deal with decent seller financing terms, it will be sold pretty quickly to one of my buyers and not to a wholesaler who can't prove they can close and/or they are the end buyer. You may find a deal for yourself to own but I'm not sure how many you'll have a chance to wholesale. Best wishes on your plans!

Jonathan Greene · Answer

How are you going to get anywhere as an investor if "I do tend to be someone who ask questions and only wants to hear what they want to hear"? That is echo chamber philosophy. If you are ingrained to only look for one answer, why are you asking questions at all? Only to make yourself feel better by getting verification, but that's not how you learn. I can see the misunderstanding here, but I still don't think the strategy will bear fruit over time. Most commercial brokers have no interest in wholesalers and neither do their clients. Unless you have cash backing of your own to buy and a solid commercial buyer's list, these deals are unlikely to close.

Joe S. · Answer

That’s a pretty lofty goal. How many of these have you done so far?

Jerry Zhang · Answer

@Jonathan Greene

I appreciate the response back. I have some experience doing this and I reacted when I heard that 99% of agents don't know what seller financing is.

I was talking about multifamily closer to 10+ units like you said than just 5 units, so there might have been some miscommunication there.

I appreciate and respect you, just wanted to make sure the facts were straight. I do tend to be someone who ask questions and only wants to hear what they want to hear, but at the same time if it's a bad idea. I'll review any feedback and try to improve as a real estate investor.

Jonathan Greene · Answer

If you mean multifamily apartments, 5 units and up, some of those agents will know, but not many until you are over 10 units which are more listed by only commercial brokers which I agree do understand seller finance. I have sold two properties on seller finance, but I don't buy on seller finance, but I know a lot more about it than you do.

Again, on the pocket listings, if you are referring to 10 units and up, I agree that it's not at 1/10. Most people who are new to BP and say multifamily mean small multifamily. You are closer to correct if you are looking for large-scale multi, but still sound like someone who asks questions and only wants to hear what he wants to hear.

Jerry Zhang · Answer

@Jonathan Greene

Hey Jonathan.

1. It's not true that 99% of Commercial real estate agents don't know what owner financing is. In fact it's the exact opposite, 1% of commercial agents don't know what owner financing is after doing this model daily and speaking to 100's of commercial agents. I doesn't sound like you have a lot of experience doing creative finance deals, and your overblowing numbers crazily.

2. Why do you want to work with agents who don't understand simple things like owner financing in real estate, it's really simple. It's like going to a restaurant and asking the waiter do you have any vegetarian options? Your telling me something as simple as this 99 out 100 agents can't do this? This is not accurate at all.

3. I have done agent outreach, just last month got a 25 unit under contract for 6% down.

4. Again 1/10th of the pocket listings out there? That's not true if there was only 1/10th the amount of pocket listings from 3-4 years ago. The entire agent model would perish because most of the time off-market listings are new leads that need to be prepared before hitting the market. No pocket listings = agents aren't even calling for new leads anymore, rising interest rate has nothing to do with an agent's ability to generate leads.

Agent Outreach to find seller finance multifamily deals?

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