What's Your 30 Second Apartment Elevator Pitch to a Broker?

Question

I'm currently trying to get into apartments/multifamily properties but I'm having a difficult time with a 30 second elevator pitch. Would you guys mind stating yours so I can get a feel for all of the important information to get across? I know the following is important:

How many units, class of building, what you plan to do to the building (value-add, etc...), your budget.

Any extra input would help out a lot.

Thank you!

V/r,

Jesse

Danny Randazzo · Answer

@Jesse Daconta be sure to add your experience and serious. This is one I use: Hi Broker, I’m Danny with my company name. We have bought $120M in multifamily this year and will acquire $200M in 2020. We are serious buyers and have capital ready to close deals. Recently we closed a 250+ in Raleigh NC. End of intro. Then I get into references or try to see who we know in common so they can check in with someone we have done business with.

Michael Ealy · Answer

Here's my 30-second "elevator pitch":We have acquired over 1,800 apartment units since 1999 and have about 1,000 units under management. We also acquire hotels nationwide and our hotel partners have over $2 BILLION worth of hotels under management. We never lost money for our investors even during the Great Recession of 2008-2009. Do you want to know how we did it?In the pitch above, you will notice how I focused on our strength (experience, track record of success and never losing money even during the Great Recession) and then ask the question if they want to know more.If you don't have any experience or track record, partner with one who has the experience and track record. And then you can leverage on their experience and track record.

Matt Engle · Answer

@Jesse Daconta Most brokers can tell a newbie a mile away so to set yourself apart you will also want to convey the strength of your team and track record. For example, if you are syndicating, you can say “I’m working with a group of high net-worth individuals and we are looking to expand into (your market).” Another option is “My partners and I have xx units and are looking to grow our portfolio. We noticed you have listed (properties that meet your criteria) and are wondering if you have anything else in your pipeline?”

Tj Hines · Answer

@Jesse Daconta listen to @Danny Randazzo and @Michael Ealy! They've just provided you some great advice. Now there is only one negative thing to that... which is what if you haven't done your first deal yet and don't have the credibility? Well there is a way that you can position yourself as having all the credibility in the world. It's how you position and frame your pitch to them. If you say the wrong thing your credibility will be shot as they are trained to sniff out newbies. PM me, I have a script we used as when we first started back in 2017. It got us on EVERY brokers list in town.

Alina Trigub · Answer

@Jesse Daconta While it's harder to get started without any experience, you can still show brokers that you're by doing the following:1) identify the specific criteria for your properties and locations to share with the brokers2) identify the team members you'll be working with: attorneys, insurance agents, property managers, etc... Use these names when speaking to brokers to show you're serious3) Have POF (proof of funds) ready, mention it to them, and send it to them at once when requested.

Account Closed · Answer

@Jesse Daconta The years are not concrete but are a good rule of thumb. Most properties built after 2010 will not have enough of a value-add play for us. Generally speaking, properties built before 1970 will have higher expenses because of outdated piping, wiring, lead paint, construction standards, etc.

Joshua Tessier · Answer

Brokers make money off buyers. There job is to help you in the buying process and doing there best to find funding so you can close the loan and they can get paid. There is no need for a 30 second pitch take all the time you want. A good broker is going to listen to your story and what you have to say and then offer you a product. Lets assume this is your first deal. What you start with is what your looking to buy. Is it a 1-4 unit? If so will you be claiming it as owner occupied? If the answer to both is Yes then your just looking for a run of the mill owner occupied mortgage that every bank and broker has. Shop around and find the best rate possible. If the answer is more complete and your putting together a package deal or shopping for commercial mortgages then your still going to need more than 30 seconds.For me I like to get people talking I want to know what we can do for each other. I might have a need for financing or a contractor or advice but until I have grown to a whole lot more units than I currently have, I am not comfortable saying to someone you should invest with me. I can't prove that I won't loose their money as I currently only have 5 units (over two properties in the past 12 months). Until I am comfortable saying I have closed +10 deals and currently manage +40 units i'll stick to growing with the banks money and build up slower. If someone said here's a pile of money I wanna work with you Mr. Newbie i'd be thinking WTF is wrong with this person.

Jesse Daconta · Answer

@danny randazzoI appreciate your input. It seems that it's a bit easier when you have deals under your belt. My company will be able to say that one day :)

Michael Ealy · Answer

Jesse,That's actually my investor pitch not my broker pitch :D Sorry for that.Brokers go to me with their deals instead of me trying to convince them to work with me so they pitch themselves to me not the other way around.But, if I am in that position, what I will add to the pitch (instead of asking "Do you want to know how we did it?) :"I am looking for a handful of brokers who have true off-market deals because I want to acquire 1,000 more apartment units. I always close on deals I make offers on, so you will have an easy, profitable transaction when you deal with me."

Jesse Daconta · Answer

@Michael Ealy Wow that's quite a 30 second pitch... I suppose id have to talk about my partner's experience. What do you tell the brokers when they ask you what you're specifically looking for?I appreciate your comment!Jesse