Getting to know the brokers

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I do a large number of relatively small deals.

I do this because that’s the part of the market where there a mis-priced / poorly managed assets that present opportunities for me and my investors to make money.

The downside is that I end up doing a lot of deals with brokers I’ve never met. Why is this a problem?

Because every broker has been screwed over by buyers who didn’t do what they said they were going to do. So, brokers are incredibly wary of getting into a deal with someone who is going to tie up the asset, waste a lot of time, and then not close. That kind of thing hurts the listing broker in two ways:

  1. Wasted time, because the time between when the broker takes the listing and when s/he gets paid is extended; and
  2. Damages the relationship between the listing agent and the seller (“Why did you get me into a deal with these bozos?”)

So, listing brokers spend a lot of time before going into contract trying to figure out if the buyer is legit.

Therefore, I spend a lot of my precious time on the phone with brokers trying to convince them that I’m not a jerk who doesn’t close.

What I’ve realized, in doing this, is that it’s much better to have a pre-existing relationship with the broker. So, I’m on campaign to take every active broker / agent in my areas to lunch or coffee.

Are you a broker or agent working in East Hollywood, Silver Lake, Echo Park, Highland Park, etc.? Get in touch and I will buy you lunch at Madame Matisse (my absolute favorite breakfast / lunch spot in Silver Lake) or a drink at the Thirsty Crow or somewhere near you.

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