Building Broker Relationships: The Key to Off-Market Deals

Real estate is a relationship business, so if you find yourself saying “I can’t find deals right now,” consider a shift in mindset. Especially if you, like LiveFree Investments founder Logan Freeman, are competing for deals in the world of real estate without decades of experience under your belt, it can be frustrating trying to position yourself against others in the race of the market. Enter, broker relationships. 

Why brokers? They know the area. They have the contacts. They have influence with the sellers and buyers. We’ve all heard of the 80/20 rule: 20% of the brokers get 80% of the business. That 20%? They “hold the keys to the kingdom”. Work smarter, not harder by taking advantage of what these brokers are already doing and work to build relationships with them. So, as an investor, the question must become how are you going to build credibility with these brokers? How are you going to land the deal? It takes more than just hustle. It takes targeted hustle.

Pick your niche. Whether it is commercial, multifamily, whatever it may be, selecting a few successful brokers in your desired niche and building a relationship with them is your key to landing not just any deal, but inbound, off-market deals. 

Here’s how: 

Find a Problem, Create the Solution 

If the goal is to build trust, bring value to the broker by offering a solution to a problem. Maybe they have a problem property. Maybe they have something that's just been really causing them a headache over the last three months. Aim to solve the problem. It is important to note that the problem doesn’t have to be on the transaction side, either. It could be as simple as connecting them with one of your contacts to help on a project. It’s all about solving some problems for them, and then having the knowledge to set the project up in a way that is valuable to them.

The hardest part? Finding value for them without asking what’s in it for you. 

Have an “Abundance Mindset”

When building these relationships, you have to play the long term. Here’s why: the brokers are going to continue to do what they're doing and by showing up and adding value to their business, you are planting the seed to be that next call when they have a 96 unit or 110 units off market that they need a buyer for. It’s like It’s like Robert Kiyosaki says: “Whatever you want in life, you've got to give away first.”

Continue to Build the Relationship 

Continue to show up. Go to the events, network, network, and network some more.  

Build relationships with these brokers beyond the deal. Have a conversation. Take them out to lunch. Ask them about their new properties and what they have coming down the pipeline. Then view and underwrite their properties (try out Michael Blank’s Syndicator Deal Analyzer) and send them feedback, again showing that you’re going to spend some time up front. Keep that abundance mindset, it won’t go unnoticed. 

Follow Through 

At the end of the day, always be dependable. Do what you say you’re going to do. Whether it is “I’ll send you that contact by the end of the day” or “Hey, I'll email you tomorrow,” just show up and do it because most people don’t. You will set you apart from everybody else by simply staying true to your word. 

And Remember…

With real estate being a relationship business, partnerships are essential. Can’t find deals? Be open to different possibilities and know that in real estate, there's not always just one route or two routes. We all have problems, right? We want more money. We want more deals. We need underwriting completed. We want to scale our properties. Building these relationships can help solve these problems for them and you.