The top 5.0% of multifamily investors own 27% of apartment complexes. Every wonder why? It’s because they don’t just close on properties. They close on properties while maintaining a stellar reputation throughout the transaction process. The top two things a multifamily real estate investor can do to see more deals are:
1) build relationships with brokers, and
2) close deals with a good reputation intact.
Closing on deals alone will not earn investors repeat business from brokers and sellers. In fact, it can hurt investors if during the transaction they were difficult to deal with. If they were difficult to deal with, the word will spread very fast and brokers, who sell over 90% of all multifamily real estate deals over 10 units, will no longer send that investor future listings. Here are just a few popular examples of reputation killers: don’t complain about price and terms while in negotiations or in contract, don’t retrade on items that don’t significantly affect your IRR, don’t beat up brokers on commission, don’t take forever to respond, don’t be one-sided in decision making (show empathy), and don’t hire deal-killing attorneys. These are very simple concepts but as a multifamily real estate agent for over 20 years I assure you it is not uncommon to see investors consistently let greed and ego trip them up during a deal. People want to do business with people they like and trust. People run from people they don’t like and don’t trust. Ask yourself regularly during a transaction, am I acting in a manner that will earn me more deals from the parties involved or less after this deal closes?