Can I have more than one multi-family broker?

Question

Hey everyone! I’m in the beginning/education stage of my real estate journey and looking for my first multi-family apartment deal. I’m also working on building a network/team. The first thing I’m looking for is an excellent broker. In everything I’ve read and heard, I know how important it is to find a great broker. I need someone who hustles like me. However, in my networking, I can see myself meeting and giving my info to many brokers. My question is this, should I only choose one broker? It seems that having multiple would be beneficial...more deal options, different networks. And the one who sends me the deal I purchase “wins”. Competition is good for the consumer?

What am I missing? Is there unwritten etiquette here where I only choose one? Or is it normal to have multiple? Or maybe I just have one but get on the email list of multiple? I would just love some insight here before I start really building my network. I wouldn’t want to do anything to hurt my credibility or reputation.

Also, should I have different brokers for different markets?

Im just nervous to pick “the one” so early in my experience before I have a great understanding of what I really need. Thanks!

Patricia Steiner · Answer

Huh?  I'm not jealous and I don't get upset...I just don't provide services to "sometime" clients.  Actually, I don't accept clients who are interested in doing a "transaction."  Surely you don't think I'll provide vetted contractors, property management assistance, full due diligence and more - to just anyone.  These are services that come with being a private client.

If you don't have a relationship with a realtor/broker who you feel is a value-added, trusted resource - you've got the wrong realtor.  Multiple brokers do not give you multiple opportunities - just a duplication of efforts and more resources to manage.  When you have the wrong people on your team, having more of them doesn't get you the results you want.  Have the courage and professional strength to walk from those who don't meet the expectations and find one in each area that can hold their own and carry that part of the load.

My recommendation is to raise your bar on what you expect from all professionals you engage in running your business.  If you're "buying and selling" versus "running a business," then we're not even referring to the same thing.  When you find the right people, the game changes.  But first, you have to be the right client.  Know your business, communicate what you want to accomplish and by when, and then let your team do what they do best.  It's not about etiquette...it's business.

Patricia Steiner · Answer

@Shalon Palmer

Shalon, in response to the questions you posed to me:

First, find the right resource.  You will want a realtor who works with investors.  These realtors differ in that they're not promoting themselves to the masses - they won't have their photos on bus benches...you'll want to look at investment properties that have recently sold - and see who represented the buyer.  These professionals are generally investors as well; they know how to do due diligence and have a pipeline of resources.  Find one or two and then call them.  They will take your call.

Making contact.  Tell the realtor what you want to accomplish, what type of properties, in which markets, and your price point. Share your professional background.  Then stop talking...let the realtor tell you if the properties you're seeking even exist in those markets at that price point, what the buying/selling climate is at the time, and how they do business.  Look for someone who will suggest changes to your plan - or even say no.  You don't need to oversell yourself - you don't need to tell them you have money or use a lot of investor lingo (it actually makes people look insecure to be dropping the alphabet continuously).  Most of my clients pay in cash - but I have some who I help find financing for as well.  Money isn't the driver.

I find that investors are quick to blame realtors when things don't go their way - but more times than not, the investor chose the wrong realtor.

Keep in mind that you're making a business decision and so is the realtor.  Be the right investor, find the right resources, and expect the right outcomes.

Shalon Palmer · Answer

@Patricia Steiner @Frank Procopio  great advice! Do you have any advice from a broker's perspective on how I should go about finding and reaching out to great brokers? Things I should say/not say, questions I should ask. In other words, how do I let them know I'm serious and am hustling and would like them to do the same? Should I let them know up front that I have money and am not wasting their time?

Frank Procopio · Answer

To keep it short, you said you are looking for a broker who who will hustle for you and deliver. If you do not provide that same commitment to your broker than how can you expect them to provide the same commitment to you.

Christopher Hunter · Answer

@Shalon Palmer  Welcome to the multifamily investing space.  I will cut to the meat of your question first.  A broker will talk to you and know you are green  around the gills.  When you have educated yourself, not before, you will sound like a person with creditablity.  Brokers can tell by talking with potential clients who is for real.  Have you done your market research on what area you want to invest in?  Next you can look up the top rank commercial brokers in that market.  Next will be playing phone tag with the 1-3 brokers you find.  If you can get them on the phone, you will have a limited amount of time to give your best 30 second elevator pitch.  First impressions are everyting.  Brokers are worth their weight in gold.  Please do not think you are the only one reaching out to them.  Every real estate investor and there team have spent hours looking for the agents that are going to bring them good deals.  Have you been building RELATIONSHIPS yet?  If you are a hustler and can add value to the market place, I beleive your team will come together quickly.  I just think you might have put the cart before the horse.

@Brent Shields

@Greg Dickerson

@Patricia Steiner

@Frank Procopio

All have valuable points that will help you.   Good luck and happy hunting.

Frank Procopio · Answer

A good broker will know the right questions to ask you. You should definitely speak to a few and find someone you feel comfortable working with. I would also check there recent sales and reviews. Prepare a list of questions and ask them across the board. It's a two way street

Shalon Palmer · Answer

@Patricia Steiner I will echo @Ann North here, thank you so much for this reply! I copied and pasted some of your response into my notes as well! I'm located in Nashvile, TN but have been getting an understanding of other markets. I'm really liking the way Florida looks and if I choose to pursue a Florida market, I'll definitely reach out! Thanks again!

Patricia Steiner · Answer

@Ann North

Ann, thanks for reaching out to me.  If a realtor is making money the driver, you've got the wrong realtor.  And, I believe every word you wrote...it happens all the time because the "wrong" realtors don't have the resources and/or creativity to help clients figure it out.

Please know this too:  it doesn't matter how friendly/pleasant/standoffish someone is...it's about investing, knowing the dirt, the process. It's business.

Right now, there's a lending program from a well-known mortgage lender (not hard money/not private money) that allows the cash flow from the property to be the sole qualifier as long as the applicant has a credit score of 640 at 80% LTV.  There's a lot of these investor financing mortgages available.  The right realtor will attract these programs/lenders because they want her/his referrals.  I also help introduce investors who I think would benefit from partnering on an investment.  That's what an investor focused realtor/broker offers clients.

I do get people occasionally who will ask me about maxing out their credit cards to do a deal or want me to introduce them to someone who will put up all the money on a deal. I can't help these folks.  They want to do a deal - any deal -  and deals that start out crazy, end crazier.  For a new investor, the advice is the same:  learn, save some money, find the right resources (build your bench strength), find the right property, then find the financing options. You may need to pursue seller financing properties - but don't buy anything until you KNOW what you're doing.  Don't trust anyone else's numbers.  Do the work...

Ryan Barr · Answer

Joel, can you elaborate on investing with an experienced operator? That's an ideal start for most beginners but based on my experience these opportunities don't expose themselves, I've seen that it comes from syndicators looking for passive investors/more followers. Where would one find the true professionals offering this opportunity?

Joel Owens · Answer

Your new but looking for experience and wisdom and also talking to multiple brokers.

The experienced listing brokers don't have time for that kind of stuff.

On the commercial side I reserve my time for clients that exclusively work with me and present them the opportunities to buy. If someone is a newer agent they are more desperate for anything but also have the crappiest networks to find deals as they have not been in the game long.

USER buyers I do not even respond to. Someone tells me they have multiple brokers I say great go talk to them and I stop correspondance. 15 years in the business I can do that as I have built a clientele base built around my business model. Now there are some funds and REITS that just want the deal and that is different. You do a hand off and check in when it closes as they have their own departments for everything versus a newbie that knows nothing and needs help with everything.

I am fine to help with my clients as when they close on something I am generally making 6 figures in commission per transaction and hopefully creating a lifelong relationship now and into the future.

Contrary to popular belief commercial brokers are not desperate for business. Some of my friends make over 1 million a year in comissions. They do not have time for games or time waster buyers, those who are non-committal but want to ask a zillion free questions etc.

I tend to find it amusing that newer buyers approach the giants of the industry and then say they are working with whoever brings them the deal first etc. That's when the brokers know another lead that is not worth working with.

Have you considered investing in a small slice of a bigger deal with an experienced operator and learning the ins and outs that way?

I mainly work on the commercial broker buyer side but the listing brokers typically work for the seller so will usually try to tell you anything to get you to buy the property. It's a volume game for them.

Can I have more than one multi-family broker?

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