Advice on finding off-market deals?
I'm looking for some good off-market deals for retail or multifamily. Any recommendations on where to find it?
[{"id": "epma1va", "text": "The super-secret off-market deal store. PM me and I\u2019ll send you the coordinates...\n\nBut seriously - networking. Pick up the phone and call brokers. Research the tax information for your county to find owner addresses and write letters. Network online. Network with local property managers. Put up banded signs in your target market. \n\nIf it were easy, everyone would do it. It\u2019s not easy. It takes hard work, dedication, and follow through. There are no cheat codes. Pick a method to source deals and do it. Every. Single. Day. \n\nYou\u2019re going to get a lot of hang ups and \u201cNo\u2019s\u201d. Keep going. You\u2019ll get there eventually.", "replies": [{"id": "epmag60", "text": "I'm willing to do what it takes. Thanks for the tips!", "replies": [], "depth": 2}], "depth": 1}, {"id": "epn9v4o", "text": "Have money.  Brokers.  Know your criteria beforehand and search for brokers who have closed deals in the type of product you're looking for.  Once you do a deal or two, more opportunities will find you.    \n\n\nSOURCE:  I'm head of acquisitions at a real estate fund, and have closed on 125 buildings in the last 3 years.", "replies": [], "depth": 1}, {"id": "epna1qx", "text": "Are you an agent looking for deals to pitch out, or are you an investor looking to buy?", "replies": [{"id": "epnclai", "text": "I'm a broker looking for deals for my Investors", "replies": [{"id": "epneolv", "text": "Then my advice would be to cold call in a specific market for a while. I know cold calling can suck but that\u2019s how my multi-family brokerage generates most of their off-market deals and listings. I use Prospect Now, focus on a general region and unit range, and then call every property owner in the area. Say something along the lines of \u201c Is this (owners name)?Hey this is __ from __. I was just calling to see if you might be interested in buying some more property in (target area)? I have some off market deals I can share with you.\u201d (I\u2019ve noticed people are a lot more willing to talk with you when you can offer them something, rather than just asking them for something).  Then if they say no, ask them,\u201d Well would you consider hearing an offer on your __ units on __ street?\u201d I think you\u2019d be surprised at the number of people who will say yes they will hear an offer for the right price. Then just get the info on the property. And boom you have an off market deal to pitch out.", "replies": [{"id": "epoin41", "text": "I love that line, \"would you consider hearing an offer...\" As simple as that sounds it would make me interested if I was in their shoes. Unless it's some family owned business for generations, I don't see how this couldn't work from time to time. Thanks for the advice!", "replies": [{"id": "epoqf9f", "text": "Exactly. It takes no commitment on their part and can really only benefit from hearing what you have to say. No worries", "replies": [], "depth": 5}], "depth": 4}, {"id": "epoqrya", "text": "That makes sense , are off market deals usually verbal deals like that ? Or do you get them to sign something ?", "replies": [{"id": "epore7d", "text": "Yeah for the most part, off-market deals are just verbal deals between a broker and a seller. Basically saying, \u201cI\u2019m not putting the property on the market, bring me an offer around what I want, and then if I like the offer, I will sign a deal with you. \u201c We call these pocket listings", "replies": [{"id": "epows1c", "text": "Thanks , is it common for pocket listings to be non exclusive ? For example let\u2019s say a property owner agrees to entertain offers , so then you have the pocket listing .. but a week later another broker calls them up with the same pitch ? How does that work ?", "replies": [{"id": "epoxhw9", "text": "Yup exactly. It\u2019s all non-exclusive. Unless you get a listing agreement to market their property for them with an exclusive contract, it\u2019s going to be the broker who can produce an offer is going to get the commission. It\u2019s competitive, but that\u2019s just how it goes.", "replies": [{"id": "epp52bu", "text": "Thanks , that makes sense . I imagine for brokers with a decent sized network it shouldn\u2019t take too long  to find a buyer these days at least if the seller is willing to sell for a reasonable price .", "replies": [{"id": "eppaxa0", "text": "Yeah once you get a good network built with solid investors, you\u2019re set. There\u2019s always good deals to be found, you just have to put the work in to find them.", "replies": [], "depth": 9}], "depth": 8}], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}, {"id": "epoxh0f", "text": "Do you ever use this on residential owners of distressed property? Sounds like a decent tactic, nice idea.", "replies": [{"id": "epoyjzh", "text": "I personally haven\u2019t, I\u2019ve been focusing on all multi-family income property. But that would be a good strategy definitely.", "replies": [{"id": "epp26fa", "text": "Honestly for some reason I was thinking you were doing this for retail or industrial, not multi family commercial. What market are you in?", "replies": [{"id": "eppaubd", "text": "I\u2019m in San Diego", "replies": [], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}, {"id": "epolpd2", "text": "Give a little information. Relevant comparable transaction, share the per unit trade. Become the local expert and keep calling and talking to new people and sharing info.  If you're in it for the Long haul, it'll pay off. If you're trying to get rich quick, can't help ya!", "replies": [{"id": "epolvpr", "text": "I got my license specifically to get into commercial. I'm in it for the long haul!", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "eptobyy", "text": "Just be prepared for owners to be out to lunch with their pricing expectations. My firm cold calls everyday but we find the biggest struggle is getting an owner to give you realistic pricing guidance these days. We mostly market our off-market deals to REITS and other institutional funds who love to get a \"deal\" no one else can see. Also you should note that the best deals we find are old owners who might own one or two large assets. Being at the right place in the right time + persistence is key to landing off-market deals. Good luck!", "replies": [], "depth": 1}, {"id": "erym2e9", "text": "What are your client's criteria?\n\nStates of interest,Property Types, Budget, Cap Rates", "replies": [], "depth": 1}]