Using a broker in multifamily

[Courtney M.]

I've been reading a lot of books about multifamily and one piece of advice I seem to read over and over is a lot of people buying multifamily don't use a buyer's agent - that seems to be frowned upon in this space.

I'm sure it's impossible to say what is standard in this market across the country, but I'd love to know if you've found this to be true in your experience.

I am starting to look at buying multifamily and it seems, to me, it would be disastrous to go about this. The listing agent is going to do his or her best to sell me on the property - I need someone else on my team that isn't trying to sell me.

What's your experience in this space like?

[Danté Belmonte]

Hi Courtney! Once you enter the multi-family space you are right. “Co-brokering” a deal or have a buyer and sellers agent is not common or really doesn’t exist. In a competitive environment like it is today for aquisitions, an offer with a 2nd agent that has to split the commission won’t look good. The listing broker most likely will not try to “sell” your offer to the seller. Also if you have a buyers agent, odds are they will know nothing in particular about the deal. They will know as much as you do. They will continue to go back to the listing broker to get info and it’s like the game telephone every time you have a question about the property or deal. 

Once you get in the multi-family game, you really need to know your stuff and should only lean on brokers for their deal-flow, not let them “sell” you on why you should buy it. You should be savvy enough in this area to make your own decisions for yourself, your company and your investors, if you have them. Your real estate attorney should be the one looking over your shoulder on the legal side to make sure you aren’t being taken advantage of and then your property management company you plan on having should look over your shoulder as well during due diligence. Same with contractors on the physical due diligence part. Multi-family is a different game and you are only as strong as the team supporting you. I hope this helps and good luck on your multifamily journey!