If you have just started out as a syndicator, you will have to get the best multifamily deals on your first transaction. Still, considering that it’s your first time, you are bound to encounter a lot of challenges to finally reaching a closed deal.
In fact, when I first started off as a multifamily syndicator, I wasn’t really sure where to start back. I didn’t even know what net operating income, cap rate, IRR and value plays meant. Aside from that, you could imagine how hard it was trying to raise enough resources for acquiring a multifamily property. Nevertheless, I was able to close my first acquisition with my team. This gave me the confidence to move on to getting more deals.
Twenty-six successful syndications amounting to over $200,000,000 in transactions later, I have significantly increased my skills and knowledge in multifamily investing.
One such skill that’s crucial to a syndicator is getting the best multifamily deals on the market. This is one challenge that first-timers will have to master. Aside from forming a highly productive investing team, it’s important to build relationships that can help you seek out the best multifamily deals.
It all boils down to one little secret: brokers.
Multifamily brokers are your best bet in acquiring your first property. They can help you navigate your way around the local market, provide you with listings of the best properties for your portfolio, and negotiate the best possible price. The small size apartments are also managed by owners, so reaching out to them can also bring some good deals for you to look at.
That being said, you will need to spend time building relationships with brokers. For me, it’s only a matter of following the right approaches.
As much as possible, you want to show brokers that you have goals. A lot of first-time investors usually make the mistake of saying they are in it just because so-and-so told them to invest in multifamily properties. This would send really bad signals to brokers who want to engage with people who are interested. You must learn the lingo and the terms that will relate to brokers that you not a novice or that you are mentored by some great experienced investor or coach who has crushed it and achieved success.
Sincerity is important, and this is because brokers will need to see past your actions and know if you’re really in it for the opportunity to grow your wealth and help the local community.
For this, make sure to state your objectives. It’s important to be specific with your goals as this will give brokers the right reasons to help you out.
Show knowledge about the real estate industry
Apart from sincerity, you also need to exhibit ample knowledge about the real estate industry in general. This is the path you should take if you are focused on forming close relationships with established brokers.
So, before building your list of possible brokers you can contact, it’s important to know more about the industry first. There are a lot of things you can do to grow your knowledge as a syndicator. You can search online for blogs about multifamily investing. Sites such as Multifamily Executive and Biggerpockets are ideal for learning more about real estate. You can also listen to podcasts of experienced real estate gurus. I make it a habit to tell my students to listen to at least 5 podcasts a week to find new information.
Show that you have equity
Having enough resources can be advantageous if you are forming a network of brokers right from scratch.
Having equity can only mean that you have money to spend, which also means that you are willing to invest in the multifamily market and work towards getting greater returns. This motivates brokers to form valuable linkages with you.
Find a mentor
If you are not sure if these strategies are right for you, you can always find a mentor to give you the needed insights to start building your network of brokers.
To find a mentor, you can simply search for people who are already experienced in the field and who are willing to share the strategies and action plans they use in getting the best multifamily deals.
Get the best value from your multifamily education by enrolling in a syndication academy.