What is there to do if you can’t find opportunities out there? What goes into buying deals off-market? In today’s #Highlights episode, we look back at our conversations with real estate entrepreneurs Brian Burke and Darin Garmin, and they answer these questions.
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Brian starts by exploring the nature of off-market deals and talks about the conundrum of establishing oneself in the market. Meanwhile, Darin sheds light on communicating and building relationships with building owners, which is the key piece of off-market purchases. Tune in now and find out how you can find that elusive off-market deal today!
Key Points From This Episode:
- Brian’s definitions of off-market deals and how they typically work.
- How to set yourself up as a buyer; getting those important calls from a broker.
- Brian’s advice for getting going in a market and starting relationships that matter.
- Why Brian is committed to staying in communication with as many brokers as possible.
- Why Darin believes bringing a broker into a deal is a good idea and has some benefits.
- The importance of being aligned with one specific broker rather than working with many.
- How to find a specialist broker and build a relationship with them.
- Why investors should spend more time communicating with owners of buildings they’d like to buy.
- Find out how bypassing brokers reduces competition for properties.
“There’s the off-market deal which is one where someone wants to sell and they call every broker they know, telling them they want to sell and asking for their opinion of the property’s value.” – Brian Burke
“[There’s] off-market deal is the one where you’ve got the seller that just is completely overpriced, every broker is way too embarrassed to take it out to market at the seller’s price because they know nobody’s going to want to buy it at that price so they call up their most inexperienced buyers, the ones that have been hounding them and annoying them the most to buy something that no one will sell to.” – Brian Burke
“[There’s] off-market deal is the one where the seller says to a broker, “Hey, you know, you sold me this deal, I want you to sell it for me.” – Brian Burke
“But what most investors don’t really spend enough time on, is consistently contacting the owners of the apartment communities that you think you want to own.” – Darin Garman
“When we figured out that this was a really good formula to use, this is what we spent probably 80% of our time on contacting and building relationships with these owners.” – Darin Garman
Links Mentioned in Today’s Episode:
About Brian Burke
Brian Burke is President/CEO of Praxis Capital Inc, a vertically integrated real estate private equity investment firm. Praxis operates on multiple platforms, currently managing active syndications for the acquisition of multifamily, single-family, and opportunistic residential assets in US growth markets. Brian has acquired over $400 million in real estate over a 30-year real estate investment career including over 2,500 multifamily units and more than 700 single-family homes, with the assistance of proprietary software that he wrote himself. Brian has subdivided land, built homes, and constructed self-storage, but really prefers to reposition existing properties. As a recognized expert Brian has been a frequent speaker at real estate forums and conferences; including the SF Bay Summit, Opal Family Office; Private Wealth Management Forum, the Keiretsu Real Estate Forum, and the Institute for Private Investors. He has also served as co-host and real estate expert on the Fox News Radio show, “The Best of Investing”.
About Darin Garman
Starting his multifamily real estate career out of college as a prison guard of all things, over 25 years ago Darin Garman began his real estate investment experience as a real estate broker as a way to leave his prison guard job. Since that time, Darin took the entrepreneurial path and has established himself as one of the nation’s most “looked up to” experts in the world of apartments and commercial investment real estate. Since entering the world of multifamily investment property Darin has been responsible for over $800,000,000 in apartment and investment property acquisitions, sales, and investment and has become the “go-to guy” for those looking for profitable long-term plays in conservative apartment investments. Darin has also raised over $100,000,000 in funds for different apartment investment properties. Darin also has experience as a founding member of a startup bank – Family Merchants Bank of Cedar Rapids. Darin was one of the founding members and owners of this bank. In this capacity, Darin not only was an owner but also sat on the bank’s Board of Directors and was a member of the bank’s credit committee. Darin remained an owner and shareholder of the bank and remained on the Bank Board of Directors as well as on the Credit Committee until the bank was sold approximately three years later. Not only is Darin very familiar with not only maximizing value and cash flow from investment real estate but also currently has ownership in whole or in part in over $50,000,000 in the apartment and commercial investment real estate throughout the heartland and is a guest on investment real estate panels, podcasts, seminars, and investment radio talk shows. Darin also is an accomplished author of 5 books including Renter Nation, Getting Rich in Real Estate Partnerships, Paranoid Banker Secrets – A Conservative Investors Guide to Double Digit Returns in Any Economy, plus The 9 Month Investment, A Passive Investors Guide To Achieving 10 Years of Wealth Accumulation in Only 9 Months. Also, Darin has been the co-author of books such as – Wealth Attraction or Entrepreneurs…The No Holds Barred Kick Butt Guide to Becoming Rich with business and marketing guru Dan Kennedy. Darin oversees the management of over 30 real estate partnerships as well as the properties owned by the partnerships on a day-to-day basis and is very familiar with what needs to be done as an investor and owner of these properties to maximize value and return for investors and owners. Darin graduated from the University of Northern Iowa with a BA degree in Criminology in 1989. Darin is originally from Algona, IA, and currently lives and offices out of Marion, Iowa. Darin has been married for 31 years to Gina Garman and has three children, Madisen who is 27, Malory who is 23, and Isaiah who is 20.
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