How to Build Relationships with Brokers, and Why it’s Crucial to Your Business
When it comes to buying and selling real estate, it may surprise you to learn that it’s not always the highest bidder who wins the prize. The reason: real estate brokers have a significant influence on who sellers choose to sell their property to.
That’s why it’s crucial to build a relationship with brokers. Without a relationship, you’ll be one of the last to know about potential deals. If you haven’t built any relationships with brokers, then you are at a major disadvantage.
Another major advantage to building strong relationship with brokers is that by building solid relationships with them, you are more likely to have access to off market deals, which can provide you with a significant advantage.
Why It’s Crucial to Build Solid Relationships with Brokers
Brokers are the ones who present offers to sellers, vet buyers and make recommendations on which buyer the seller should go with. They are the gate keepers. Hence, building string relationships with brokers is crucial. If the broker doesn’t know you or your company and cannot vouch for you, then your chances of getting the deal are slim.
Another reason to maintain string relationships with brokers is the accessibility you will have to off-market deals. It is well known that off-market deals tend to be the best deals in many cases, because you will not find yourself in a “bidding war” against other buyers. When sellers decide to sell off-market, they contact their broker and ask them to show the property to a select group of investors. Building trust and a maintain a good standing with brokers will place you in that short list.
Trust is the foundation of every business relationship, and real estate is no exception. On the home buying side, the National Association of Realtors found that honesty and trust were the top factors for buyers when choosing which agent to work with; It’s the same with respect to commercial real estate.
Tactics to Use in Building Broker Relationships
There are several tactics that you can employ as a syndicator to build relationships with real estate brokers. As you might imagine, you don’t want to build close relationships with every broker in your area. You must be selective and target the brokers that offer the type of deals you would like to syndicate. Here are the main 3 tactics to build solid relationships with brokers.
Tactic #1: Get Face Time with Them
First, get to know the broker by getting face time with them. Visit properties they list in person and walk properties with them. Take advantage of the property tour to talk to them and let them know the types of deals that you’re looking for. Regardless of how you choose to communicate down the road, nothing beats a face-to-face meeting to start with.
Tactic #2: Be a Top Communicator
A second tactic is becoming a top communicator. If a broker sends you information about a property and you run the numbers and decide that it’s not the right deal for you, let them know. Be honest, proving details on why the deal doesn’t work for your investors. It could be the area isn’t right, or the returns are below your minimum. By explaining why you aren’t going to move forward, you’re helping to educate the broker on the type of properties that you are interested in. That helps the broker, and the next time they provide you with information on a deal it might be closer to the type you’re looking for.
Constant communication and relationship nurturing are the foundations to building trust with brokers. Like other relationships, you need to communicate frequently in order to keep the relationship with brokers healthy. This include periodically phone calls, texts, and emails- whatever is needed to keep a dialogue going. Make sure you keep in touch with them on a regular basis.
Here’s some sound advice that helps in all business dealings: always answer emails and texts. If you stop responding, the broker will stop sending you information on potential deals. Be very clear about your investment strategies, and your effort will be very much appreciated.
Tactic #3: Attend Brokers Events
A third tactic to employ is to attend events that they also attend. These could be national events or local events hosted by the broker. They may also be conferences hosted by the broker. Seeing you repeatedly will show them you’re sincere about working together and over time it will help to solidify your relationship.
Using Social Media to Stay Connected
Whether you embrace all of the new technology available to you or wish you could go back to the “old days” of Rolodex files and personal notes, the fact is that technology is here to stay. Regardless of your personal feelings on how it impacts you, utilizing the available technology to stay connected to brokers and others in the industry will help you achieve your goals.
Over 68% of adults use social media, and it’s the same for Realtors. More realtors are posting on Facebook, Instagram and Snapchat than ever before. Many firms and brokers maintain Facebook pages to increase visibility and to use as part of a marketing effort. Use social media to stay connected with brokers and to keep building relationships with them. Real estate professionals also use LinkedIn for its networking capabilities, so be sure you have a profile on that app.
Just remember that while technology will make things easier for you, there’s still a continuing need to build a personal relationship. Don’t give up on the face-to-face conversations. Technology is a timesaver, but it can’t replace traditional networking tactics.
Building relationships with brokers is crucial to your success as a syndicator. by getting face time with brokers, maintain strong and constant communications with them and by attending their events, you will be able to build solid and long-term relationships with brokers, which is crucial to your success as a real estate investor and a syndicator.
About the author
Ellie is the founder of Blue Lake Capital, a real estate company specializing is
multifamily investing throughout the United States. She is also the host of a
weekly podcast called "That REllie Happened?! Unbelievable Real Estate
Stories with Ellie", a podcast that brings the true stories behind the deals,
from the most successful real estate investors around the globe. Ellie started
her career as a commercial real estate lawyer, leading real estate transactions
for one of Israel’s leading development companies. Later, as a property
manager for Israel’s largest energy company, she oversaw properties worth
over $100,000,000. Additionally, Ellie is an experienced entrepreneur who
helped build and scale companies by improving their business operations. She
holds a Masters in Law from Bar-Ilan University in Israel and an MBA from MIT Sloan School of Management.