Multifamily Legacy Podcast 036: What You Need to Know When Dealing with Brokers
Most people work their entire lives, except Bruce Wayne. He was in control, had nice cars, and a house on the beach. His phone was not ringing because he had his stuff together.
I'm coming to you from Kauai, which is my favorite island. About 17 years ago, I came to the “Bruce Wayne” house that I’m sitting in right now. He's not Batman, but he was loaded and living what I consider the perfect life because he had time and money. He owned apartments, and that's how my story began. Bruce was not a great mentor, but he gave me the perfect vision - I am going to own this house some day. And I may need to work with a broker to get it!
Topics on Today’s Episode:
- Have a vision, cultivate it, pursue it, and actively start living out the destiny
- Dealing with brokers: Their job is to get the seller a buyer; sometimes they come off as very pushy, aggressive, and intimidating
- Don’t let a broker steer you in their direction; have extreme confidence to start changing the dialogue and challenge the broker’s crazy statements
- Brokers often give you information that means nothing; you should just care about how a property underwrites and its potential
- Create a structured process for fact-finding missions/site visits
- Ask questions and interview those who understand a property - people running it
- Splinters happen; a side conversation that they weren’t telling you gets spilled
- Everybody's watching you and making their own judgments on can you buy or not, you have operational excellence, and do you know what you’re doing
- Don’t do most of the talking, ask the questions and then be quiet
- Unit Refresh Process: Always look at the worst units and floor plans; get a good sense of what the units look and feel like, and how much work is needed
- Know the cost on stuff and have an idea of what the market is already bringing
- Become friends with the brokers to build trust
- Negotiating is rough and feelings can get hurt, unless you are with professionals
- Throw in a low-ball offer; you still have to play the game
- Respect the brokers, but they should also respect you; demonstrate your ability to call things out and know your process
Links and Resources Mentioned:
Quotes:
“They have a job...get the seller a buyer, and sometimes they come off very pushy, sometimes they come off very aggressive, and they can be quite intimidating.” Corey Peterson
“Brokers are really good at giving you a lot of information that means nothing.” Corey Peterson
“The best people that truly understand this property are the ones that are running it.” Corey Peterson
“They weren’t questions that we sit there to demonize anybody or to put in a bad light of anything, but we did need to know the information.” Corey Peterson
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