The following Q&A was completed as part of our conversational Commercial Real Estate FAQ Interview Series, we hope you find it helpful.
When looking for deal flow in the competitive real estate market, your relationships are going to make all the difference. Having multiple relationships throughout the industry, and going out of your way to nurture those relationships, opens up more channels for deal flow to come from. In highly competitive marketplaces like the southeast, it can be difficult to find properties to invest in that don’t already have a multitude of offers coming in from all over the country.
Richard Wilson: What are the 2 or 3 excellent sources of real estate deal flow in your experience?
Darby Parker: Yeah, thank you. I’d first say that techniques for sourcing real estate deal flow definitely differs by asset class and the market you’re in. For multi family over 100 units especially in the southeast, the market is so competitive, and rightfully so because it’s so lucrative, that you’re hard pressed to find an untouched unnoticed non professionally managed asset that hasn’t been called on by brokers and out of state buyers on a monthly or probably even weekly basis. Because of this fact you really need to establish the deep network with brokers and even principals to drive sufficient deal flow. These relationships rightfully take time and if transactional interaction were to build they can fall apart in a matter of minutes, so we don’t take them lightly. We find that focusing on smooth transactions, negotiating win/win scenarios, just abiding by our word goes a long way to ensuring those relationships remain intact and it’s translated in the success of our projects, the fund, and ultimately our investors.
Richard: Okay, great. And it is a very competitive marketplace, it’s the topic that keeps on coming up at our real estate summits that we keep posting.