NYC multifamily portfolio heir (relax, nothing crazy – trust me). Because of the difficulties inherent to the current NYC market, I’ve been looking elsewhere – FL, MI, PA for small multifams as a first proof concept. When I reach out to brokers, I get one of two scenarios:
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A broker will send me a couple listings claiming “plenty of upside” even though generous underwriting clearly shows negative cash flow
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I’ll speak to a broker who seems to get it and then they’ll just ghost.
I know markets are tough everywhere (look at recent posts here) but are they just giving their deals to the richest buyers they know? Keeping the only actual upside deals and buying themselves? What’s the point of contacting brokers?
I have property shark and I do TONS of cold-calling long-time owners, I even knock on doors here in the city. What else should I do? TIA.
Posted by throwawayk527
3 Comments
Most brokers are just order takers these days, they’ll push whatever garbage listings they have sitting around rather than actually hunt for deals that make sense
The good ones are definitely keeping the real opportunities for their whale clients or themselves – can’t blame them honestly
Unfortunately, when you go small the level of sophistication goes out the window.
Build relationships with the brokers and provide them feedback why their listing is overpriced and give them offers even if it’s low.
Consider a co-investment with a more established owner in those markets. His/her relationships should be able to derive the flow you’re seeking and cuz you don’t have to take the whole thing down you might get better “larger deal” economics.
Maybe alter your outreach to sweeten the deal? Those of us that have benefited from relationships with wired-in local market brokers all met them somehow. TBH the best one I ever worked with was through an intro from a mutual contact (not an investor).
Are you reaching out with your investor profile/needs/timing and incentives? Is it easy for them to address? Something like “I’m a cash buyer looking for Class B, 20-40 doors with a local (to them) due diligence team available Monday, looking to close as soon as 30 days and I can offer a 1% additional incentive for solid leads that close in the next 3 months the in addition to …(usual market rate incentives). I’m interested in (list specific neighborhoods, distances etc that show you know the market and have done some homework)“
You may be doing that but hard to tell because this post has….weird information like being an “heir” in NYC and looking for “proof of concept” whatever that is, so hard to tell.