Multifamily properties offer opportunities – and challenges – on a large scale. Today, KW Commercial agent Michael Simpson of Long Beach (Calif.) shared with Family Reunion attendees his insider tips on how to find, secure and operate massive deals, leading to a massive payoff.
Simpson, a nationally recognized top-producing agent at KW Coastal Properties, is passionate about commercial real estate – especially multifamily properties. “I came out of the gate in commercial to the multifamily market,” he said. “Why? Because there is a huge cash flow, it involves less vacancy risk, there are bigger deals and profits, creative financing, and lenders qualify the properties.”Finding Deals
Simpson said one of the best ways to find multifamily deals is to be very active. “By active, I am referring to two key activities,” Simpson said. “Prospecting and networking.”
Simpson said that by prospecting for listings on a regular basis, agents will encounter owners that are not going to list publicly or place their property on the open market. “This happens often in multifamily because the seller does not want their tenants to find out that the property is on the market, or they want some sort of confidentiality.”
"By networking on a consistent basis, the active agent will hear about good deals, both on and off the market, which are known as pocket listings,” Simpson said.
Strategic Targeting
One of the ways Simpson is finding a massive payoff from multifamily transactions is through strategic targeting.
Simpson created a “grid” system that targets sellers who are currently not maximizing their equity position with a specific property. Using his grid system, Simpson is able to show multifamily investors why they are getting a diminished return on their property and what they can do to fix it. “I’m a Real estate investment planning specialist,” Simpson said. “I want to help investors achieve their goals faster.” And Simpson’s massive success proves he is doing just that.
Securing and Servicing Deals
Finding the deal is just the first part. Agents need to ensure they not only secure the deal, but that they service it with a very high level of detail and attention.
Simpson says that different clients have different expectations, so there is no blanket formula for service. For this reason, he suggests agents establish mutual expectations with their clients. “In general, the agent must be communicative, responsive, and have systems in place to provide great service,” Simpson said.
He also recommends that agents have a great assistant or transaction coordinator to help them with the details.
To learn more about KW Commercial, visit their website.