When you start to learn a new market, some of your best insight will likely come from the locals who work and live there. If you live somewhat far from these out of state markets, you will need to get yourself comfortable relying on your team, including property managers, vendors and of course, local Investment Sales Brokers.
Investment Sales Brokers, aka Agents, realtors or whatever other names they are given are your pipeline to the deal flow happening in the market. Yes, you can cold call every owner yourself to find the needle in the haystack, but inevitably, these brokers have many more connections (at least in the beginning) and will likely always have the best deal flow. Of course, this means more people will have access to bid on these deals, but that’s the nature of the beast.
HOW DO YOU BUILD AND MAINTAIN STRONG BROKER RELATIONSHIPS?
In my experience, when you are new and unestablished, brokers will either ignore you or be SUPER helpful. Some brokers have plenty of strong clients who can close, so they will likely not put as much focus on the newer guy or gal like you, but if you find that broker that is young and hungry like you, it can be really beneficial to focus your energy there. On the other hand, some brokers do not have as strong a relationship with bigger buyers, so they have no problem showing you all there is to know about a market. Overall, the main thing is that brokers want to see you are serious. Plain and simple. Time is money in this business.
So how do I show I am serious?
- Follow Up Often
If a broker sees you are following up weekly, or monthly (depending on your approach), you will be able to stay top of mind so when they have a deal that they may not blast out, you will likely get that first call.
- Show you have experience
Either you have experience and can show that broker you have closed in the past or you may be new. If that’s the case, find a mentor or a partner who has experience and leverage their experience to show the broker you are capable of closing.
- Be respectful and provide feedback
Brokers are human beings. They are trying to earn a living just like you and I. If they don’t have a deal, kindly thank them and move on. Don’t nag them about deals every day or bother them when they don’t have what you want. And when they DO send you a deal, make sure to provide timely feedback on the deal, whether it’s a fit for you.