Building Off-Market Deal Flow in Large Multifamily with Kevin Romney

Passive Wealth Strategy Show - Real Estate for Busy Pros

How can investors build strong relationships with brokers to gain access to off-market multifamily deals?

Kevin Romney shares his proven strategies for sourcing and acquiring off-market multifamily properties. Drawing on his experience in commercial real estate, he provides actionable tactics for establishing credibility with brokers, performing due diligence, and closing profitable deals.

Kevin Romney is the co-founder and managing director of Camino Verde Group. He is responsible for underwriting, acquisitions, financing, legal and corporate operations. He also provides financing support for development projects. Prior to creating the Camino Verde Group, Kevin founded The Romney Group in 1989 and remained president and CEO of the company until he left to create the Camino Verde Group in 2019. At the Romney Group, Kevin owned and developed commercial property and managed retail, office and medical projects. While at The Romney Group, Kevin was also CEO and president of Paramount MultiServices, in which he built a group of call centers serving several Fortune 500 companies. These call centers were located throughout Texas, New Mexico, and Nebraska.

(00:03:00 - 00:06:00) Opening Segment

• Take good care of brokers by sending gifts and not asking for fee reductions
• Respond quickly to off-market deals brokers send you
• Have a policy of selling through the same broker you buy from

(00:06:00 - 00:09:00) Evaluating Deals

• Get rent rolls and T12s if possible, otherwise use known data as a proxy
• Reply within 72 hours with your level of interest
• Be prepared to walk away if due diligence uncovers major issues

(00:09:00 - 00:12:00) Targeting Active Brokers

• 90% of deals controlled by a handful of brokers is accurate
• Focus on brokers specializing in older, smaller multifamily properties
• Establish yourself as a motivated buyer who can close deals

(00:12:00 - 00:26:00) From LOI to Closing

• Use a template LOI with 5 day reply timeline
• Get an attorney to review PSA, aim to have signed within 7 days of LOI
• Why you should act quickly to get property under contract before other offers come in
• Many "professional sellers" won't actually move forward
• Why Kevin prefers brokers who understand his criteria and remain engaged

(00:26:00 - 00:30:00) Closing Segment:

• Best Investment: His Family
• Worst investment: Investing in Emu birds from Australia
• Best Lesson learned: Always do your due diligence on all deals.

Quotes:

"Take good care of your brokers. Make sure that you send them a birthday present, a Christmas present. Don't ask them to lower their prices." - Kevin Romney

"Better to walk away than get in and then be over your head." - Kevin Romney

Connect with Kevin:

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