Experiences with Multifamily Brokers...

[David C.]

Fellow BP-ers,

I have a good network of single family home brokers and am currently assembling a group of multifamily brokers to work with in my area.  I have found that the multifamily brokers that I have come across have been very much "hit or miss".  

Some are very interested, attentive and seem invested in clients, while others seem to take their time, don't respond and/or let you sit for days without contact.  Are multifamily brokers less motivated or not interested in taking on more business, or are they just a different breed?  

My SFH network is very motivated and attentive, while some of the multifamily brokers seem as though potential clients could walk away, and they wouldn't care (and should walk, I suppose). Anyone else have this experience?

[Chris Collins]

@David C. keep in mind the state of the market. Deals (good deals) seem to fly off the shelves. There is SO much capital looking for deals.  Brokers can and do go to their trusted buyers who will close and have that track record already.  

So to be candid, I would expect an initial call from them in a timely manner, but beyond that, I have seen that they really need to see your effort on your end to be taken seriously. (I certainly wouldn't expect them to be calling you back each month to follow up, until you are a proven buyer/seller in their eyes).

If you're trying to build rapport, and get on the inside track, keep in mind their end goal is simply to close properties and to have future buyers and sellers to close properties.

So besides the advice to 'be friendly, get to know them personally, become as 'buddy buddy' as possible...'

I'd suggest bringing up your financing, your investor capital, your dollar figures early. It shows them that you're speaking the same language.  "I'm here to find good deals, I'm capitalized, and ready to close on the deals when they show up."  Tell them about deals you've closed (sfr is fine, you can be honest), and about your team...

Be as concrete as possible. Too many times brokers hear 'I'm looking for multifamily deals, from 10-120 units...value add...anywhere in DFW..."  

That's a huge range, and doesn't necessarily show focus.  

"I'm new to your market, but I've studied it and have driven through the area. I really like XYZ neighborhoods but would love to know your opinions there...  I have a group of investors with $1M liquid to close on a deal, which we think should get us a 10 unit property, with about $200k in reserves to take on our renovation plans..."

That kind of specificity does wonders with brokers in my experience, and WILL get you a call back on deals that fit parameters because they see you're actually focused and looking for something.

Beyond that, I probably wouldn't expect a LOT of follow-up from brokers until you've proven out to them you're a closing buyer/seller.

You do the follow-up, you do the 'can we grab some coffee, I'll be in town next Tues at 11', you do the emails and the small gestures to stay top of mind...

Hope that helps!