How To Win The Commercial Real Estate Acquisition Game
An investor called the other day and complained, “I’ve talked to a bunch of brokers, but I can’t find the deal I want. Can you send me a list of what you have for sale?”
We sent out our list and asked the investor what he wanted. He said: “You know, a good deal. Something that makes sense. All I see are opportunities that are overpriced or gone before I had a chance.”
If you’re an investor, here’s some bad news. Investors call our office, make the same requests, get a list of what’s on the market, and complain about unavailability of offers. We offer to talk about the requirement, but most say they’re happy to call brokers because they’ll gain access to more offers that way.
Maybe, but aren’t you looking for out-of-market deals in in-market locations?
Remember, sellers hire brokers to represent them in the sale of their property. They want the advantage of getting exposure to the largest audience and selling their property for more than they could on their own, which means that when you call brokers, you’re talking to the people the owners want you to call.
In our own interest as a homeowners consulting company, please keep calling the brokers. We encourage him and we like calls. It makes our owners happy because it shows that we are giving them great exposure and will eventually sell their property for the best price.
However, there are some investors who refuse to limit themselves to the world of brokerage. For those who choose to exit the market, we won’t lie to you. It is hard work and costs money, time and energy.
A client came to us and required an industrial building at Boston’s 93/128 Great Exchange Market. Out of 50 existing potential properties, we searched for 6 sites that could be purchased and the client selected 3 for serious consideration. Of the original 6, 20% were for sale by owner or with a broker, while the rest of the properties were off the market.
The trick to getting and winning the buying game is knowing what you want, identifying where it exists, and then working the market one commercial property at a time until you find the motivated seller willing to work with you on a transaction. Is not difficult. It just takes time and energy to stick with the program until you get the results you need.