View of the cityscape above Lady Bird Lake, Austin, Texas. (Photo by Ed Lallo/Getty Images)
If you’re looking to buy commercial real estate, a good starting point when reaching out to brokers is to demonstrate that you’re credible. You’ll want to present yourself in a way that shows you’re interested in the market. When done well, establishing your credibility could get you a more serious response. You might uncover great opportunities, as others will notice your intent and may reach out with deals they think you could act on.
Follow these strategies to establish credibility when purchasing commercial real estate:
1. Leverage Your Track Record
If you’re an established investor, sharing what you’ve done in the past can show others that you’re active in the market. You might set up a website where you showcase your holdings and post information about your investments on social media. Brokers who know you’re engaged may prioritize your calls, as they’ll know you’ve carried out successful transactions in the past.
Alex Rabin speaks of building up credentials to invest in real estate on the “Insider’s Edge to Real Estate Investing” podcast.
2. Partner for Credibility
If you’re new to real estate investing, you can use other tools besides a track record to establish credibility. You might partner with someone else who has a solid reputation and a history of high-performing investments. When establishing a partnership, you may offer to bring value to the table by doing part of the legwork involved in the buying process. The partner can bring their expertise and access to capital and funding opportunities.
3. Bring in Referrals
Perhaps you’ve carried out several investments in one city and are interested in transacting in another region. If you arrive at the new place without knowing anyone, it might be difficult to make a connection. Rather than showing up with no connections, you could ask the broker you’ve worked with in the past if they know anyone in the new area. They might be able to make an introduction, which can help establish your credibility and move forward in different markets.
4. Present Your Offer Well
After you’ve looked at a property and want to make a bid, I often recommend a written offer. If you can include a brochure that shows your capability as a buyer, the seller might take you more seriously. You could also attach documents that highlight your track record. In my book, “The Insider’s Edge to Real Estate Investing,” I lay out additional details on how to present a great offer.
5. Stay Transparent
If you’re new to the market or the industry, be upfront about it. Acknowledge your status and emphasize your dedication to learning and understanding the market. Brokers appreciate honesty and are more likely to invest their time with someone who they perceive as transparent.
Whether you’re a seasoned investor with a proven track record or a newcomer eager to establish yourself, demonstrating credibility can help open doors as you search for property. By making the most of your track record, highlighting your past transactions, and collaborating with experienced partners, you’ll be on your way to having conversations about possible deals. In the next article, we’ll cover ways to take the right approach for buying real estate, which is the next step in the investing process.
