Unlocking Hidden Opportunities: Building a Deal Sourcing Pipeline

This article originally appeared on LXKGroup.com.

In commercial real estate, the deals you don’t see are the ones that matter most.

Finding great commercial real estate (CRE) deals isn’t just a challenge?—?it’s the challenge. As a sponsor, you’re constantly competing for the same limited opportunities. Brokers hold the keys to many listings, while institutional investors dominate prime markets, often outbidding middle-market players.

But here’s the truth: great deals aren’t found; they’re built.

This guide explores how to create a deal-sourcing pipeline that doesn’t just uncover opportunities but attracts them, ensuring you stay ahead in even the toughest market conditions.

The Foundation of Your Pipeline: Knowing Where Deals Come?From

Every great deal has a source. To maximize your pipeline, focus on cultivating relationships with three types of people.

Brokers: The Gatekeepers

Brokers are often the first point of contact for CRE deals. They’re more active in the market than you could ever be alone, but competition for their attention is fierce. You must stand out to be memorable and trusted for the next exclusive offering.

• Communicate clearly about your criteria. A broker should know exactly what types of properties you target, from asset type and market size to deal structure and timing.
• Provide feedback promptly (especially when passing on a deal). This reinforces that you’re serious and engaged, not just wasting their time kicking tires.
• Stay consistent. Quarterly check-ins, updates on your latest acquisitions, or even a simple “How are things going?” email ensures you remain top-of-mind.
• Execute efficiently. Brokers prefer working with sponsors who don’t waste time or overcomplicate deals. Prove you can close deals without unnecessary delays.

The better your relationships with brokers, the more likely you are to be the first call when an off-market or pocket listing surfaces.

Owners: Direct Access to?Deals

Owners represent an often untapped source of opportunity. This is especially true for owners in distress or adjusting their portfolios to unload non-core assets. Direct outreach removes intermediaries and can lead to better terms, but beware of astute owners who know how to manipulate inexperienced deal-makers. To connect with owners:

• Leverage public records and data platforms. Start with a simple map search or drive around to identify properties that fit your criteria. Extend that basic targeting with tools like Crexi, CoStar, Reonomy, or county records to look for potential sell-signals, such as delinquent taxes, significant vacancy, or a maturing loan.
• Network within your niche. Attend events where property owners congregate, like industry conferences, local real estate meetups, or Chamber of Commerce gatherings. Trade groups are an excellent source for meeting all deal sources.
• Build trust through thoughtful outreach. Cold-calling or emailing owners can be effective if done tactfully. Show them you’ve done your homework, respect their time, and have a genuine interest in their property. Also, be ready to act if an opportunity arises.

Direct owner relationships allow you to bypass competition and negotiate creative deal structures that accomplish mutual objectives. It’s not a replacement for brokered deals, though.

Third Parties: Hidden Deal?Scouts

Third-party professionals?—?attorneys, accountants, property managers, and contractors?—?often have unique insights into deals before they hit the market. To leverage these relationships:

• Position yourself as a reliable resource. Share your track record, your approach, and examples of how you’ve successfully closed deals.
• Be generous with referrals. Send them business, and they’re more likely to reciprocate.
• Stay in touch. Regular check-ins ensure you’re always on their radar when they hear about a potential opportunity.

Third-party relationships expand your network and give you access to deals others might never know about. They’re also a terrific resource for raising capital and building an investor pipeline.

Consistency Is King: Build a Systemized Follow-Up Process

Relationships drive deals.

Relationships require nurturing, though, and that’s where many sponsors fall short. A robust follow-up process ensures you stay connected and relevant to brokers, owners, and other key players. Here’s how to build one:

Implement a CRM. A customer relationship management (CRM) tool isn’t just for sales and marketing professionals. It’s an essential tool for tracking conversations, commitments, and follow-up dates.

Set Follow-Up Cadence. Consistency is key. Regularly scheduled touchpoints should include the following:

• Quarterly check-ins with brokers to ask about recent activity in the market
• Updates to owners about your recent successes, reinforcing your credibility
• Invitations to industry events or webinars that could benefit third-party contacts

Track and Prioritize. Your network is not a homogenous mob. Use your CRM features to segment and tag the contacts in your database.

• Categorize relationships based on their deal flow potential
• Identify key contacts that deserve more frequent attention

Add Value With Every Touchpoint. Each follow-up should provide a benefit. That could be a market insight, a useful introduction, or even a simple, “saw this and thought of you.”

Check out our guide to building an institutional hotel acquisition pipeline for more strategies to formalize your pipeline and develop consistent deal flow.

Capitalizing on Broken?Auctions

One of the most overlooked sources of great deals is the broken auction?—?when a buyer ties up a deal for 30 to 60 days but fails to close. These situations present unique advantages:

• Motivated Sellers. Sellers often experience deal fatigue and are eager to transact.
• Prepared Buyers. You already have access to deal materials and may have conducted some diligence, giving you a significant head start.
• Faster Closings. With groundwork already in place, you can move quickly and secure favorable terms.

To succeed with broken auctions, you must stay alert and build a network that tips you off to deals in flux.

Download our Broken Auction Playbook to learn how to identify these opportunities, position yourself as the next buyer, and close faster than the competition.

Relationships First: Lead With Generosity and Gratitude

In a business often driven by transactions, those who prioritize relationships stand out. Two core principles set you apart and deepen connections?—?generosity and gratitude.

Lead With Generosity. Offer value before asking for something in return.

• Sharing market insights or data with brokers and owners
• Referring business to attorneys, accountants, or other professionals in your network
• Help solve problems for contacts, even when there’s no immediate upside for you

Reflect With Gratitude. Small gestures have a big impact.

• Send handwritten thank-you notes
• Publicly acknowledge collaborators in newsletters or on social media
• Send small, thoughtful gifts to express appreciation for a key referral

When you lead with generosity and express gratitude, you create partnerships that last far beyond a single transaction.

Elevate Your Deal Flow and Unlock Insider?Secrets

Creating a deal-sourcing pipeline isn’t about chasing deals?—?it’s about building a system that ensures deals come to you. By focusing on relationships, consistency, and strategy, you can:

• Build trust with brokers, owners, and third-party professionals
• Gain an edge by capitalizing on broken auctions and under-the-radar opportunities
• Maintain a steady flow of quality deals, regardless of market conditions
• Strengthen partnerships through generosity and gratitude, turning contacts into collaborators

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Each edition dives into strategies, systems, and secrets that successful middle-market investors use to dominate even the most competitive markets. Don’t miss out?—?unlock your next hidden opportunity today.

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If you found this helpful, explore LXKGroup.com/insights for more expert guidance, proven frameworks, and tools designed to help you confidently scale your investment platform.