Is deal flow slowing?

searcher profile

July 11, 2024

by a searcher in USA

I am fairly geographically constrained, but it seems like the number of broker listings in my area has dropped off. Has anyone else noticed this as well?

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commentor profile
Reply by a searcher
from University of Alberta in Miami, FL, USA
I've been searching for five months, so I'm not sure how the deal flow was in previous years. In which geography are you searching?

It can also be a result of how your search evolves. When you begin, you are open to many opportunities, even if you believe you know what you want. But in reality, you look at a lot of deals that may not align with your experience and overall profile. Over time, you become more selective and gain a better understanding of what suits you and what doesn't. You also start spending more time talking to brokers, lenders, lawyers, accountants, etc., which means less time browsing marketplaces or brokers' websites and signing NDAs. This can result in fewer new deals entering the pipeline.

I say this because a couple of weeks ago, I was under the same impression. So, I devoted a few days exclusively to searching, and the pipeline filled up quite rapidly.

It's also worth building a good network that constantly shares new deals.

Good luck with the search!
commentor profile
Reply by a searcher
from Fordham University in New York, NY, USA
Proprietary deals are great if you can get them. But the reality is your first purchase will likely come from a brokered deal (see successful searchers like the guys over at Sig Partners and they'll mention the same). When you make that first purchase, establish credibility and understand the market and get to know the players, you're more likely to get an off market deal. So I don't agree with most of the comments that proprietary deal flow is the correct path on purchase #1. Stanford study also showed that basically 95%, maybe more, of deals were sourced through a broker.

What I'd do is develop relationships with brokers, create an outreach program to them, and they'll likely have stuff in the pipeline.
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