Pros and Cons of Using dual agent in MF investment

[Leon Lee]

Hi, BPers

I wonder whether it is a common practice in using dual agents in MF purchases. I asked because (1) MF market is red hot in many markets of the country right now; (2) I used dual agents (or agents from the same brokerage) purchasing several SFHs in the past, and my (maybe native) impression was that it did help get me a hot deal and (3) There are MF investors who are doing direct marketing campaigns can avoid CRE brokers completely and only use RE attorneys in these deals. Fully understanding that building a good relationship with a resourceful CRE broker is critical, I am trying to come up with different strategies and would like to hear inputs (i.e., pros and cons of doing so) from your experienced MF investors.

Many thanks!

Lee

[Ian Stuart]

If you work with the dual agent - you're definitely more likely to be awarded the deal! On the multifamily side - on small deals - the Marcus & Millichap guys are trained to push deals towards buyers who write their offers through their office. You get a better shot of being awarded the deal if you work through them. In red hot markets similar to the ones you describe, working with the listing agent to "double end" the deal will give you a better chance - especially if your competing against a buyer pool that's paying all cash, going hard on earnest money early, and promising quick DD, etc.