All the above, and more - Posted by ray@lcorn
Posted by ray@lcorn on March 10, 2010 at 13:39:10:
Mark,
My M.O. is to go after specific property types in selected markets, and like to cast as wide a net as possible. I check all online listings, call brokers, pull GIS and title reports on properties I see and like, and generally will take any lead that comes from anywhere if it’s where and what I’m looking for.
A key factor to understand is that commercial real estate is by nature an inefficient market. No two properties are exactly alike, no two owners are alike, and no two markets are exactly alike. That makes for a wide variety of options when it comes to structuring a deal.
My motto: Nothing is always, everything is sometimes, and never say never.
When I’m interested in an unlisted property I usually call owners directly rather than send letters. I have an old-school sales background and like to get a feel for the person on the other end. In some cases I want to remain anonymous in the initial stages and will have my attorney or one of a few brokers I work with make the call.
Re the Loopnet rep… that’s the party line from brokers, that the listings are stale, overpriced, inaccurate, etc. Trouble is, that’s true of their own databases as well because every major brokerage uses Loopnet to power their systems. Most are just afraid of disintermediation… that once buyers and sellers can talk directly they will lose business. In my opinion that’s a flawed premise, but that’s another post.
Loopnet is the closest thing the industry has to a nationwide MLS because of its scale. The other two major sites are CoStar and Property Line, and there is an ongoing foodfight to present themselves as equals to Loopnet. (You know your brand is strong when your competition has to define themselves by comparisons.) For property types like CTL deals they have actually wrung a good bit of the inefficiency out of the market, and that’s contributed to the rise in demand (and value retention) for those deals compared to ten years ago.
I don’t have an exact number, but my guess is I have sold around $20mm and bought over $10mm of properties on Loopnet since they started in 1998. Over that period my gross deal volume, not counting leases, is around $135mm, so that’s a significant portion of the total.
As a practical matter, where the conversation starts --e.g. broker listing, Loopnet, FSBO ad, etc.-- doesn’t matter. It’s where it ends that determines whether a deal gets done. Managing that conversation is the essence of dealmaking.
ray