1. Prioritize broker relations. Brokers are your gatekeepers to the commercial real estate world, Cody says. All of his deal flow comes through broker relations. He and his partners have a list of about 40 brokers across their markets, and they make an effort to engage with each of them regularly.
2. …But make sure you don’t waste brokers’ time. These are very busy individuals who are going to spend their time where it’s most efficient — on people who are closing deals. Cody focuses on building broker relationships by closing deals and getting transactions done rather than attempting a wine-and-dine approach.
3. Find ways to add value. Everything right now is coming down to price and risk capital, Cody says, so you have to find ways to be creative and add value when you’re acquiring properties.
4. Be prepared to pay full market price. You’re also going to have to put up some sizable risk capital to give the sellers confidence that you’re fully bought in and you’re going to make this transaction happen, Cody says.
5. Increase your due diligence and inspection periods. The faster a seller can get to close, the higher your chance of getting the deal awarded.
6. Leverage the experience of other operators when necessary. Due to the aggression in the marketplace and not having quite the track record as some of their competitors, Cody and his partners began cosponsoring with other operators with more experience and added value to those deals by raising equity.
7. Build a robust marketing funnel. You’ve got to go out there and build your network, and you do that through thought leadership platforms, Cody says. He and his partners started with a meetup and a podcast, then incorporated email marketing and social media to grow their network even more.
8. Establish trust and relationships to attract investors. Cody believes creating successful investor relationships comes down to focusing on their needs, finding an alignment of interest, and being authentic. That method has worked well for him and his partners.
9. Take action. Right now is still a phenomenal time to be in commercial real estate, Cody says. Although it is hyper-competitive, you can’t let that deter you or put you in a state of fear. Put yourself out there, take action, and go find opportunities.
Cody Laughlin | Real Estate Background
- Managing partner at Blue Oak Capital, a multifamily acquisition firm focused on existing Core/Core+ multifamily assets across Central Texas.
- Portfolio: GP of $105M across 787 units
- Works full-time as a registered nurse.
- Based in: Houston, TX
- Say hi to him at:
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