I'm still relatively new to managing relationships with brokers, so sorry if these questions/problems come off as newbish/condescending.
I am looking for a very specific type of industrial property that falls in a use group that is not permitted in a lot of municipalities. Brokers constantly call me trying to sell me properties that aren't zoned for the use I am looking for, require a half a dozen variances, are too far away from where I told them we are willing to purchase, are insanely priced, too small, etc. One broker in particular calls me every day with absolute bullshit. He did come through not too long ago with something that was exactly what we were looking for but it was a little too far away from where we we're looking so we couldn't pull the trigger. He has since tarnished his status as a high priority contact by leaving me hundreds of 2-3 minute long voice mails trying to pitch things I have no desire to buy.
I might be crazy here but wouldn't things work more efficiently for everyone if the process worked something along the lines of: I tell the broker what we are looking for---> they shoot me an email when they find it---> we conduct our due diligence process and buy it if nothing too horrible shows up. How does calling me every single day and attempting to sell me something I have no desire to buy help any of us?
A couple of solutions I've thought of are:
1) Tell brokers to only email me opportunities. I really only need an address to get the information I need to see if this can actually work. I don't want real opportunities getting lost in the thousands of calls/voice mails I receive every single month about bullshit.
2) Would it be inappropriate to tell brokers to be more selective with what they send me? I don't have time for a 20 minute sales call or a property tour every time a new industrial listing in the state hits Costar.
Or do I just need to bite the bullet and deal with 100+ sales calls for every maybe I find? I'm just really sick of hearing things like:
"It's a one of a kind property." "My (insert random connection) is on the zoning board." "There's multiple buyers circling this so we have to act right now." "We have multiple offers not far from the asking price." (When asking price is 2+ times market). "The town is very developer friendly and will likely accept your intended use." (It's good news to hear this from our trusted CM firm but it's meaningless coming from a broker). "It's an up and coming area." "I'm of the opinion that we're allowed to do XYZ." (I read the zoning book and we are absolutely not allowed to do that). I ask "why the property is so cheap and what issues we are dealing with?" then the broker tells me that the price is outdated and increases the price by 25%. I do some HW and find out the property is an environmental shit show. "It's a 30 acre parcel." (I look at the survey and it's a 21 acre parcel).
Do these comments/tricks ever work? We can both save a lot of time by you just giving me the address or the block and lot number.
Telling brokers (nicely) what your investment parameters are and saying that you only want to see deals within that box (or very close to it) shouldn't be an issue.
Given that I'm at an institutional shop so everyone pretty much knows what our wheelhouse is (I'm also I'm debt), but brokers know not to waste our time with stuff that is too far left of our business plan.
It would definitely not be inappropriate to tell brokers to be more selective with what they send you. I doubt the broker would even take it the wrong way unless they are a doofus.
If you tell a broker, "Listen, man, I don't have time for this shit. Either bring me what I'm looking for or don't call me," the broker is not going to hear your tone, the hostility, the exasperation, or anything. The broker is going to hear, "...so you're saying there's a chance if I bring you the right deal?!?!"
When I was a broker, I always loved the people who were a challenge. They'd tell me my listings were shit, that I don't know their business, etc. A broker worth his or her weight will adapt to your demands.
Good brokers won't do this, especially not to institutional contacts/partners. Sounds like you're dealing with some really schlocky brokers man. There are a lot of them out there. A professional broker will keep very close tabs on what all capital sources and/or buyers are interested in and will only reach out when there is a possible match (sometimes it might be a slight stretch). It's called respect for other peoples time, which most people appreciate and remember. If you're telling him you want to only see 2010+ vintage distribution facilities with 32' clear heights and he keeps sending you 1970s vintage class C shithole tire manufacturing plants, then he's clearly a shitty broker and is probably not worth associating with.
I have a hard time telling all the Keller Williams and Marcus brokers to go away because I am just waiting for the day they bring me a winning lotto number. In reality that will never happen and I waste too much time looking at 10 - bangers in the valley
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