Multifamily Legacy Podcast 005: How to Get Your Offers Accepted By Brokers
Today, we are talking about offers and how to get your offer accepted by a broker. I would like to think I understand brokers, but I don’t always. I do know what gets them excited, and it is money and commissions. What they are concerned with is if you have the ability to close and how much money they are going to make. If you want to have a deal that the broker will recommend to the seller, give the broker both sides of the commission. That means not using your realtor or your real estate license for half of the commission.
I also talk about finding commonality and making relationships. You want to be friends with your broker by talking about something interesting other than real estate. Once you find that commonality take notes and keep in touch. I also talk about sending an LOI or letter of intent and what is included in it. Along with a sample LOI that I use. You want your LOI to be precise. I also talk about the importance of having a good management team in place with a solid credibility kit. I also talk about having your own credibility kit and having a proof of funds. After this episode, you should have a good understanding of how to get your offer accepted by a broker.
Topics on Today’s Episode:
- Giving a broker “double juice” or all of the commission
- Make friends with your broker by finding a commonality and taking notes
- The importance of building relationships and getting to know people
- You really want your broker to like you and consider you as a friend
- Creating an LOI or letter of intent
- LOI - Three page document that features who is buying, selling, price, inspection period, days to close after inspection, signature, and list of things wanted during due diligence phase.
- Finding a great management company with a credibility kit or bio on their abilities to do the job
- How momentum plays are usually solved by having good management on board
- Having good management in place usually matters to the seller
- Have your own credibility kit or show that you are successful at what you do with a 3 or 4 page document
- Having a proof of funds a screenshot of a bank account or a document with numbers
- Call the broker at 5:00 pm on friday and be the last guy to submit an LOI. “Hey, I’m looking for some pricing guidance.” Play hot and cold to make it to best and final and find the correct range.
- Having friends is the key to the game
- $100,000 earnest money can lock up a 7 million dollar deal
Links and Resources Mentioned:
Quotes:
“Give your broker some love. Give him all of the commission and don’t hold it back.” Corey Peterson
“Make friends with your broker by talking about something other than real estate.” Corey Peterson
“Keeping track of all of the wonderful people you meet and how well you know them is one of the most important things in life.” Corey Peterson
Don’t forget to download my Free Workshop Quickstart Video Series, and if you like what you have heard please leave a review on iTunes. On the next episode, I am going to give a quick shout out to some of my reviewers.