Sourcing Deals - RE Acquisitions
For those that transitioned from Excel/IC memo monkey to deal-maker, what was your strategy. The way I see it there are two paths:
1. Become tight with the brokers - check-in constantly, promise high fees, continue to deliver on execution. Maybe have them help you perform targeted searches.
2. Develop extensive relationships and source deals via industry friends - Much harder to do but more valuable. If deciding how to spend time, I imagine route 1 is time better spent.
I'm expecting people to say that it's not one or the other, it's both. I get that. My question is, when you had to step up to the plate, what was your strategy?
I think I'm planning on hitting path 1 very hard (80% of my time) and working on path 2 via a networking event/LinkedIn message once every week or two. Thoughts?
Was a broker now at a developer. Reach out to many brokers in your market with a clear criteria. Know what you want even if you’re not buying today. Also do not tell them you’re not looking right now, say I’m looking for this criteria in $x-y range.
Actually respond to their emails when they send something. “Thanks for sending not for us” is fine, but if you ignore the email the majority of brokers are not getting back to you ever. They want responses and reasons why.
Another thing is the type of broker can vary, they all try to sound like they know what they’re doing but there’s a difference between a no name middle markets shop vs a top team. A lot will sound like idiots and have no knowledge of basic terms/understanding of real estate but build relationships with anyone you can.
I don’t think the fee thing really helps tbh, everyone is charging the same fee you saying hey I’ll give you 6% instead of 4% on a deal is stupid on your end. Negotiate the fee act like you’ve done it before even if you haven’t, these guys will take advantage of you in some cases if they can. You’re looking to build relationships and get out there bottom line.
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