There is a lot of competition for multifamily properties these days and CAP rates are highly compressed.
If you are relying solely on brokers, the chances of getting a good deal or even competing are slim to none especially if you are just getting started.
So, what do you do?
This is exactly what brokers are doing to get the best deals.
But before you do, you must know exactly what you’re doing and speak the right the language - especially when dealing directly with the sellers.
Sellers will sniff you out quick if you are not experienced. Educate yourself on the space, the market, and the asset before you contact the owners so you can ask them good questions.
The better the questions, the more likely you’ll come across as a trusted expert and partner to any seller.
Some of the best ways to find off market commercial and multifamily properties is to compile lists from city and county websites if available or through a paid service like:
Or you can use free resources like:
The key is consistent action, how you approach the owners, and then the follow up. Ideally, you should be talking to hundreds of sellers these days to develop good deal flow.
You can send letters and email but cold calling is by far the most effective method.
However but you really should know how to open the conversation, what questions to ask and more importantly when to listen and not talk.
Most importantly, you need to convey assurance that you are an elite player and not just wasting their time. Remember -ultimately you are building relationships with the owners you speak with.
Follow up is crucial and where 90% of investors and salespeople fall short. If you consistently follow up in a meaningful way and you will get deals.
Direct mail can work but cold calling is much more effective for commercial and multifamily. That’s what the brokers do.
That being said, the ultimate strategy is direct mail, cold calling and targeted social media all at the same time. You should have a professional website, social media presence with your company info, and section about you and your team.
It’s guaranteed that owners will look you up which is a great way to prove your credibility.
Direct mail campaigns should be a mix of postcards and professional letters on business letter head.
You can send the direct mail first followed by a phone call and then targeted social media campaigns.
As I say about every aspect of the business, you need to be consistent, have a good system to maintain a relationship with the owner, and must be willing to talk to MANY sellers to get a good deal.