Do’s and Don’ts of Building Relationships with Brokers
This blog post is repurposed from an IG LIVE found on @MahekSV.Official.
One of the key tactics to commercial real estate is establishing relationships with brokers.
It’s very common to hear about first time real estate investors using “cold calling” as their main strategy and that can work at the right time and place, but I cannot stress enough about how beneficial it will be to have the right broker working with you. Utilizing brokers can be such an underrated strategy and so overlooked, but it will be a game changer.
Why is it important to work with a broker?
Commercial real estate is going to involve a lot of deal analysis. This is where brokers are going to bring in their value. They often see most of the deals that are going to go on the market before they even do. A good amount of deals go on market, and sometimes they don’t make it, but are usually pushed through to brokers. So before the seller puts it out on the market they reach out to brokers to see whether or not they have the ideal clients in order for them to get the best deal for their property.
Before it goes live in the market, this is the perfect time for investors to get in touch with brokers to be able to get the best deals. And if you have a relationship with a broker, they’re going to know exactly what you’re looking for and give you the heads up whenever they see a property about to go on the market. Are you wondering how to begin that relationship?Let me share some do’s and don’ts in that building process to make it easier for you.
DO’S
Become their ideal client
You want your brokers to like you, so become their ideal client. That means knowing what it is that you are exactly looking for and giving them clarity so that they can look out for the right property, the right deal, and the right asset for your timeline. Do the research and know exactly what you’re looking for. When you know what you want, it’s going to be so much easier for them to come to you when a seller brings them their property. Build a meaningful relationship with them so that they’re going to want to work with you and bring you deals.
Get a chance to know them
Make sure you get the chance to know more about them. What deals have they done, what asset class are they interested in, and ask them what client they’re looking for. If you know these essential answers, you’re going to know whether or not the relationship is going to be valuable to you or whether or not you’re going to be valuable to them. You don’t want to waste their time and you especially don’t want to waste yours if they’re not seeking out the deals that you’re looking for. And don’t forget to follow up with them, because they’re not just at your disposal. This is how you maintain the relationship.
Treat it like a transaction
Again, you don’t want to just use them once and be done with them or constantly just trying to get what you need from them and that’s it. Brokers need to know that you are going to be just as valuable to them. They want clients who are going to close a deal for them. If you only use them to get information and not even bother giving them your business, they’ll eventually stop working with you.
And after all their hard work, here’s an insider tip: compensate your broker maybe through a finder’s fee. They’ll appreciate it and they’re going to know you don’t take them for granted.
DON’TS
Forget that they’re human too
Brokers are still people and people with a job to do. They’re not going to want to work with you if you’re demanding or rude with them. Be respectful when speaking to them and give them credit as the experts helping you out. And the way to treat them respectfully is to not waste their time or bother them by trying to get as much from them as possible. Make sure to know that you’re not the only one they’re working with and don’t act like you’re the only one they should be prioritizing.
If you’re not treating them like they’re just another asset to you, they’re going to want to work with you and bring in the best deals for you.
Come in completely clueless
Don’t come in clueless. You must absolutely do as much research beforehand. Let me tell you, brokers are going to be upset when they learn that you don’t even know what you want. If they’re setting up time aside to talk with you, don’t waste it by being clueless. Be prepared and look online and maybe ask some other experts to pinpoint exactly what kind of properties you want to invest in. This way, coming in prepared will actually be productive for the both of you.
Conclusion
If you want to make it easier on you, find a broker and build that relationship. Cold calling can be helpful, but having a great relationship with a broker is going to be a better use of your time. Plus, they will already know what you want and come to you when they have a deal you can make before it hits the market. Broker relationships are going to be the best bet for your commercial real estate business.
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