How to Win On-Market Apartment Deals (Broker Call Script)

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0:00 You are likely like the majority of
0:01 people who are not finding onmarket
0:03 deals or you're finding that all the
0:04 deals on market in the places that you
0:06 want to buy don't work. You're looking
0:08 at you're like this doesn't cash flow.
0:09 This deal doesn't make sense. This is
0:11 something I hear every day. This is one
0:13 of the main places people get stuck. Why
0:14 is multif family strategy and why am I
0:16 buying all these deals on market and how
0:18 are they making so much money? I'm going
0:20 to share exactly how you negotiate these
0:22 and how you get a pipeline for the
0:24 already listed properties and why I'm
0:25 still buying properties today in
0:27 multiple states, multiple markets, and
0:29 the strategy has kept working year over
0:31 year over year over year. I'm going to
0:33 share exactly how we do this on this
0:34 video today. Oh, by the way, welcome
0:36 back to the channel. My name is
0:37 Christian. If you have not followed the
0:39 channel yet, please subscribe below
0:40 because we share everything on how to
0:42 buy deals low to no money down. In fact,
0:44 I started with almost no money, about
0:46 $10,000 to my name, and I bought
0:48 millions and millions of dollars of real
0:50 estate, and I was able to do it because
0:52 I got these principles down, and I was
0:54 fortunate enough to get these down
0:55 early. Now, on this channel, we talk a
0:57 lot about buying direct owner. This is
0:59 how you find them on market, and this is
1:00 where I find about 50% of my deals. Now,
1:03 to be fair, my most creative deals and
1:06 some of my best deals of all time have
1:07 been direct to owner. This doesn't
1:08 replace that. But if you want to dive
1:10 into your market right now, look at
1:12 listed deals and within the next 90
1:14 days, start buying your next apartment
1:16 building. This is how you're going to do
1:18 it. So, you can choose any site. Uh,
1:20 Loopnet, Krexy are the two biggest
1:22 fortly listed properties. In this case,
1:25 I pulled a building here in Dublin,
1:26 Texas. Now, this is just south of
1:28 Stevenville, Texas, where I invest
1:30 heavily. So, this isn't a market that
1:32 I've already invested in. I haven't
1:33 looked at a whole bunch of other deals
1:34 in this market. I chose a deal at random
1:37 that looked somewhat interesting to me.
1:39 Now, what I'm looking for is not is it a
1:41 great deal? Is it a great price? Has it
1:42 been listed? There's so many lists that
1:44 people try to qualify for you. That is
1:46 not how the game is played. Here's where
1:47 you start. Look at the darn pictures.
1:50 Does it look cool? Like serious, that
1:52 that is the first thing. I'm looking at
1:53 the deal. Is this a building that's
1:55 interesting? I'm looking at it. Okay,
1:56 looks like a newer roof. Centrally
1:58 located to the town. I do like that.
2:00 Kind of has a cool vibe. It's also a
2:02 little bit dated looking. So, I'm
2:04 looking through. I'm like, okay, uh, am
2:06 I interested in owning this? I do like
2:08 the stone. Holy crap, that looks nice on
2:10 the inside. They currently want
2:13 $700,000. This is currently mixed use.
2:16 So, it could be multif family, office,
2:18 retail, hotel. You have a very flexible
2:20 zoning here. Now, where most people
2:23 would look at this is they go, "Okay,
2:24 I'm pouring through the deal. I'm
2:26 looking through. Obviously, there's some
2:28 gorgeous units in here. Also, a little
2:30 bit dated, but this is very nice real
2:32 estate for very low price." So, I'm
2:34 like, "Okay, question number one. Can we
2:36 figure out what's wrong with this thing?
2:38 Other than some ugly wallpaper and some
2:40 silly finishes, this is an awful lot of
2:42 real estate for not a lot of money. In
2:44 fact, we're looking at almost 17,000
2:46 square ft of real estate. If it all
2:47 looked like this, I'd be stoked. But we
2:49 get into it and we go, "Okay, so here's
2:51 another unit. That's not nearly as nice.
2:53 Oh, what's going on with all these other
2:55 units? We got storage. We got unfinished
2:57 ceilings and unfinished bathroom. Here's
3:00 your problem. The building is not fully
3:02 built. It's ripped down to the studs in
3:04 multiple areas. Do we want to buy a
3:06 project? I don't know. Here's what your
3:08 next step is. If you're me and I'm
3:10 looking at this, I'm like, "Okay, looks
3:11 like there's a lot going on here. It's
3:13 been on market for a year. Essentially
3:16 been on market for a year. I'm going to
3:17 call the broker. This is what you do.
3:19 Mr. Air, by the way, if anyone buys this
3:21 deal, my management company is 20
3:23 minutes north of this. I will manage
3:24 this for you. If someone else buys this,
3:26 I'm in the middle of another project.
3:27 Otherwise, dibs. This is a cool
3:29 property." So, you would call the
3:30 broker. Now, I'm not going to call him
3:32 right now cuz I'm filming this late at
3:33 night. That being said, if you want to
3:34 see me do a live call with a broker on
3:36 deals just like this, I will link a
3:38 video below where I do a full analysis
3:40 of a deal, cold call the broker, go
3:42 through the entire exchange, but I will
3:44 give you a recap of what you're going to
3:45 do on this. So, again, if you want to
3:46 see a live version of this, I absolutely
3:48 do that and I'll link one of the
3:50 examples below here for a video that I I
3:53 think went really well. But what I would
3:55 do in this case is I would call Mr. Eric
3:56 Hayden. In fact, I did this yesterday
3:59 before I chose this example of a deal.
4:01 Guess what he said? He said, "Hey, uh,
4:03 there's enough room in this building to
4:05 potentially have 25 multif family units.
4:07 Now, right now, there's a few multif
4:09 family renters. It's an old hotel. It's
4:11 mixed use. My number one question, could
4:14 this be used as only multif family?
4:16 That's my specialty." He seems to think
4:18 the city would be interested. Okay, 25
4:21 units. There's currently two units
4:23 completely finished and leased. If we
4:24 can get creative on the finance here,
4:26 and that's a huge if. I didn't ask yet.
4:29 At
4:30 $700,000, if I have to do the capital
4:32 raise to finish this building, I am
4:34 going to get this for an unbelievable
4:37 steal. Now, of course, we're going to
4:38 have a very detailed inspection and
4:40 we're going to make sure that
4:41 contractors are in here. We have all of
4:43 our quotes done. We want to make sure
4:44 the budget is the budget. But at first
4:46 look, 25 units, two already 100%
4:50 completed,
4:51 $700,000. I could spend about a million
4:54 dollars on this building and it will
4:56 still be a fantastic deal. Now the
4:59 question becomes, will the city let me
5:01 run at 100% multif family? And is a
5:04 million dollars or less the budget that
5:06 I need to get a 25 unit building in the
5:09 middle of downtown? If that is the case,
5:11 I'm interested. Now, there's one more
5:13 piece to this, and this is why we buy so
5:14 many of these deals. If I just bought
5:16 this project and it bled money every
5:18 month, I now can't go do cool new
5:20 projects because every time I'm buying
5:22 real estate, my income goes down. You're
5:24 limited on how much you can buy. We got
5:25 to figure out how do you cash flow a
5:27 building with only two tenants. The
5:29 answer on this one, they would probably
5:30 have to do a short-term seller finance
5:32 note while I was doing the construction,
5:34 and we would have to have the payments
5:35 deferred to the end. So, I can pay them
5:37 out of the finished project, but there's
5:39 not going to be any mortgage payments
5:41 through the life of the loan. Now, if
5:43 they were open to this sort of offer
5:44 where we have a little teeny tweak, if I
5:46 have no loan payments, I have a couple
5:47 tenants in there. I can probably just
5:50 about break even on my hold cost here,
5:52 it's going to be low to no money per
5:54 month to hold the building. We raise the
5:56 construction capital. We got to build a
5:58 building. Now, is every deal online a
6:00 massive construction project? No. I just
6:02 clicked on this one and it looked fun.
6:04 This took me about 45 seconds online.
6:06 The deal is interesting. The building's
6:08 interesting to me. The location's very
6:10 interesting to me. I have some
6:12 efficiencies because of where I already
6:13 own in this market and I have reason to
6:16 believe we might be able to do some
6:17 negotiation because the sellers have
6:19 been trying to sell this for a long
6:21 period of time. If this is the type of
6:23 deal that interested you, awesome. You
6:25 can go buy it. If you want something
6:26 more passive, do the same project. In
6:29 fact, I was looking in Weatherford,
6:30 Texas recently. There's a couple deals
6:32 that had some potential. This is just
6:34 north of Stevenville. Let's check it
6:35 out. Dive straight straight in.
6:37 Weatherford, Texas. I'm looking for
6:39 multif family cuz I'm a multif family
6:40 guy. Same principle applies for
6:43 everything. I own some mixed use and
6:44 retail as well. I can do the same thing
6:46 here. All right. I ran into these
6:48 recently. So, these are both very, very,
6:51 very similar properties. So, I'll click
6:52 on one. This is the same owner. So, you
6:53 have these decent studios. They're small
6:55 studio, metal roof, corrugated steel
6:58 siding over brick. This thing's
7:00 basically indestructible building. The
7:02 windows look new. The doors look new.
7:04 There's a little dog park in the back.
7:06 They have some cute little signage. This
7:08 is the definition of looks like pretty
7:10 nice entrylevel housing. Secure
7:12 mailboxes, covered areas, there's a dog
7:15 area, paved parking, a little picnic
7:17 area. Is this fancy? Absolutely not. But
7:19 this is probably excellent entry-level
7:22 housing. Take a look inside. I would
7:24 spice up these units cuz these are
7:26 boring. Even for me, and I like simple,
7:29 this is boring. I'd redo those floors.
7:31 The walls are just fine. Kitchen's
7:33 actually fine for what it is. is I don't
7:34 love that it cuts in the middle of the
7:36 room, but it works. These are simple
7:38 little studios. They have nice
7:40 countertops. Nice. I mean, everything's
7:42 nice in here. I just hate the flooring.
7:44 I think what I would do on the interiors
7:45 is change the floors. We have mini
7:47 splits up here. This is a pretty good
7:49 deal. Price per unit. So, it's been on
7:50 the market for 40 days. They want a
7:52 million6. How many units are we looking
7:54 at here? 15 units. Now, in my experience
7:57 in Weatherford, anything like this
7:59 around $100,000 a door is probably
8:02 right. So, we're probably mildly
8:04 overpriced, but we're within the
8:06 ballpark. If you could pick this up for
8:08 a million450, maybe a million5, this
8:11 would likely be a very good deal. Now,
8:13 do we know everything about the building
8:14 yet? No. We could probably view the
8:16 flyer and get some more financials. The
8:18 next step is you just call the darn
8:19 broker and you ask some questions. Now,
8:22 I've talked to this broker before. He
8:23 actually list a lot in this area. So, if
8:24 you call him, he may have other listings
8:26 for you as well. This is someone who
8:28 knows how to do deals. You pick up the
8:30 darn phone. At this point, there's
8:32 enough here. What too many people do,
8:34 and what I hope you're not doing, but
8:35 now you're not going to do it anymore.
8:37 They look at this and they go, "Million
8:39 650, it's been listed fairly recently.
8:42 Uh, it's a little bit more than I'm
8:43 looking to pay for this apartment
8:44 building. Onto the next." Pick up the
8:46 darn phone and have a conversation. Your
8:48 conversation flow will have five pieces.
8:49 They go like this. First of all, is the
8:51 property still available? Nothing is
8:52 worse than entering the conversation and
8:54 have be like, "Oh, I'm not the one
8:55 listing it." Or, "Oh, this property,
8:58 yeah, just went under contract." All
8:59 your momentum's gone at that point. Is
9:01 it still available? Tell me a little bit
9:03 about the property. I saw it was listed
9:04 40 days ago. How are things going thus
9:06 far? Get an open-ended question. Get the
9:08 broker to do their job. Get them to
9:10 start selling to you. That's going to
9:11 make them comfortable. Let them tell you
9:12 about the property and just kind of sit
9:14 back and let them do their thing. You're
9:16 building rapport by letting them sell to
9:18 you. Let them do the talking. Ask the
9:21 open-ended question. Sit back, relax. As
9:24 you're going through, you might have
9:25 some more pointed questions. This shows
9:27 interest. It also, by the way, indicates
9:29 some level of intelligence. You go
9:30 through and you ask a few pointed
9:32 questions. Hey, I noticed the layout of
9:34 these is a little bit wonky. They are
9:35 small units. How has occupancy been? And
9:38 do you find that these lease up pretty
9:40 quick in this area? Like, ask something
9:42 specific. The property looks really
9:43 nice. It looks like the owners actually
9:45 takes really good care of this. Are
9:47 there any maintenance issues that you're
9:48 aware of? Because from the pictures,
9:50 this thing actually looks fantastic. Let
9:52 them know this is exactly the type of
9:53 stuff you want to own. And then ask them
9:55 how you're going to finance it. Hey, how
9:58 do you think the bank would look at this
9:59 property? That question right there,
10:00 you're asking about deferred
10:01 maintenance. You're asking about the
10:03 bookkeeping. You're asking about the
10:04 price. If they say, "Hey, the bank's
10:05 going to want a high down payment."
10:07 Uh-oh, there's probably a problem here.
10:09 Is it overpriced? Do they not have good
10:11 bookkeeping? Is there a major
10:12 maintenance thing that needs to happen
10:14 that's going to prevent financing? It's
10:16 good to know. If there is a problem, you
10:18 can dive into creative finance. You're
10:20 positioning yourself as the most obvious
10:21 buyer. Now, even if you don't buy this
10:22 property, here's the magic. you actually
10:24 went through a very high quality
10:26 conversation with them. I would give
10:27 them an offer where it worked for you.
10:29 So if I got through this and I knew, you
10:31 know, with what he gave me a million450
10:33 is going to work, I'd say, "Hey, I love
10:35 the deal. This is exactly what I want to
10:36 buy based on the fact that the owner,
10:39 let's say they just wanted a certain
10:40 price." Based on the fact that they want
10:42 price and they can't get creative at
10:43 all, that's totally fine. This deal
10:45 starts to work for me at a million450.
10:48 Would it be offensive if we submitted
10:50 that offer? Is that not even worth
10:51 writing up? I don't want to waste
10:52 anyone's time. what you've done now,
10:54 whether they accept it or not. And by
10:55 the way, sometimes they will just say
10:56 yes and congratulations. You bought a
10:58 piece of real estate. But what happens
10:59 more often than not is they go, "Okay,
11:01 well, we're gonna wait and see if we get
11:02 more offers. Three months later, they
11:04 call you and they go, "Hey, you were the
11:05 one you're the one person who gave me a
11:08 legitimate offer on this. You didn't
11:09 lowball me. You gave it to me where it
11:11 works. We had a good conversation. You
11:13 moved to the top of their list." These
11:14 same brokers will also call me the next
11:16 time they have a deal like this. They
11:17 go, "Hey, I remember you were
11:18 interested. We are a little stuck on
11:19 price. I just got this listed." You want
11:21 to move to the top of their list. You
11:23 don't want to get on their general email
11:24 list. That is a tired list that's
11:26 already been sent to everyone. With a
11:28 broker, when you can actually get to an
11:30 offer that works for you, they know
11:32 you're a ready, able, and willing buyer.
11:34 You're a real person to them. You'll up
11:36 your deal flow for years. When you build
11:39 a relationship with them, that's how
11:40 we're doing this. This took me all of
11:42 two minutes to hop in and pick a couple
11:44 of properties to do as this example.
11:46 These are brokers I've actually called.
11:47 That first deal I showed, I actually
11:49 called on. In fact, after I close my 76
11:52 unit here in just a few weeks, I have an
11:54 86 next in the pipeline. If this is
11:57 still around after that, so if that if
11:59 that hotel is still around in like four
12:00 months from me filming this video,
12:02 almost 100% chance I'm going to buy it
12:04 if I can use it as multif family. If you
12:06 want to beat me to it, please do give
12:08 Eric a call. Uh, buy that building and
12:10 I'll manage it for you. I would love to.
12:12 In fact, I'll even discount your
12:13 management because I really want to
12:14 manage that building. It's a cool place.
12:15 This is how you do the onmarket deals.
12:17 It is that simple. It is not is it a
12:18 good deal? was a bad deal. What would
12:20 make this a good deal? And get that darn
12:22 offer in front of them. That is how you
12:23 play the game. I buy tons of properties
12:26 on market. Mentees and multif family
12:28 strategy bought 13 deals last month.
12:31 These are firsttime deals for people. 13
12:33 firsttime deals for apartment complexes
12:36 above 10 units. Purchase last month. You
12:39 people just did this. Of those, seven of
12:41 them were on market. Five of them were
12:43 direct to owner. There are deals like
12:44 this in your market. I promise you. You
12:46 want to get connected. Make that call.
12:48 It's one of the easiest calls you'll
12:49 make in your life. I'm going to close on
12:50 this. When you go to Starbucks and you
12:52 order a coffee, the barista is expecting
12:54 you to order a coffee. It is the easiest
12:55 coffee order you'll ever do in your life
12:57 cuz that is their job. The brokers are
12:59 not scary. These aren't people who don't
13:01 want to talk to you. Their job is to
13:02 sell a piece of real estate. Your
13:04 objective is to buy a piece of real
13:06 estate. Call and place the order. People
13:08 who get stuck are scared to pick up the
13:10 phone on a listed property. You got to
13:13 realize this is the same thing as
13:14 ordering a drink from your local
13:15 Starbucks. It is the same exact thing.
13:18 Put that much stress on it. Relax. This
13:21 is a normal thing. They want to talk to
13:23 you about the property. Pick up the
13:25 phone. Have a relaxed conversation. Go
13:27 buy some apartment buildings. Guys, I
13:29 hope you thought this was helpful. If
13:30 you want more tips on how to succeed in
13:31 real estate and actually buy the darn
13:33 stuff, follow this channel for more. I
13:35 appreciate you watching. I'll see you on
13:36 the next episode.