As apartment building investors, we understand that brokers control the vast majority of real estate deals – and we know that having a ‘in’ with brokers is the only way to score those elusive off-market deals. But if you are just getting started, how exactly do you build rapport with the brokers and partner to source off-market deals?

After graduating from the University of North Texas with a degree in finance, Michael Becker spent nearly ten years at Wells Fargo. During the last five years of his stint in commercial real estate banking, he focused exclusively on multi-family properties and became the number one loan producer for his division three years running. But Michael recognized that he was on the wrong side of every deal, and he made the switch to apartment building investment in June of 2014. In just three years, he has scaled the business, Strategic Property Investment (SPI) Advisory from zero to 4,300 units. Michael also hosts Old Capital, a podcast aimed at multifamily real estate investors.

Today Michael offers sage advice regarding how to cultivate a team, establish credibility and land your first deal. He also shares how to meet brokers face-to-face and establish relationships so that they will partner with you on off-market deals, as well as strategies for sourcing pocket listings. Listen and learn how to provide value to brokers so that you’re top-of-mind when deals come available.

Key Takeaways

 [3:29] How Michael was able to scale from zero to 4,000 units in three years

  • Business partner with complementary skill set

[6:18] Why Michael feels so strongly about utilizing brokers to find deals

  • Control vast majority of deals
  • Relationships with owners
  • Brokers do the legwork, bring you potential deals

[7:45] Michael’s advice for newbies on how to build relationships with brokers

  • Network face-to-face via meetup groups, events
  • Get on broker lists and tour
  • Provide brokers with detailed feedback

[9:10] How Michael scores the elusive pocket listing

  • Track record of performance
  • Known in the small broker community (12 brokers control 80% of the DFW market)

[10:58] Michael’s tips for new investors to be taken seriously and land their first deal

  • Be realistic about your resources
  • Make it a ‘we’ conversation
  • Build a credible team, including a commercial mortgage broker, management company, lawyer and insurance agent

 [13:40] Michael’s recommendations for networking events

[16:29] How to maintain a solid working relationship with brokers

  • Check in every two weeks to remain top-of-mind (without being annoying)
  • Provide value by sharing industry-specific news items

[19:00] How to source off-market deals

  • Pursue properties approaching loan maturity
  • Ask brokers about recent BPO’s in which a competitor got the listing
  • Subscribe to data services and mine for properties
  • Download and archive OMs to track broker-owner relationships

[25:48] Other ways to find off-market deals

  • Establish a foothold in a particular area of town
  • ‘Gift’ brokers with a list of properties you are interested in

Connect with Michael

Old Capital Podcast

spiadvisory.com

Email mbecker@spiadvisory.com

Resources Mentioned

Marcus & Millichap Events

Bisnow Events

ALN Apartment Data

CoStar Data Services

Yardi Matrix

trepp.com

Free eBook: The Secret to Raising Money to Buy Your First Apartment Building

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