I am trying to decide if I should have my commercial real estate agent help me get the deal in a city 70 miles away or should I get a new local agent.
A little bit of background information. For past 1 month I am working with an agent looking for commercial real estate in Los Angeles. I found one property, he sent me another, that's pretty much it. We did not sign any agreements. Agent seems like a nice guy, not pushy. Through loopnet I found a commercial property in Palmdale (70 miles away). The deal is better than what I've seen so far in Los Angeles. So I was thinking if I end up buying this property, should I go though my current agent. Or find one in Palmdale? Thank you
Depends on the numbers of the palmdale property -if you're getting a good return, then the agent is doing his/her job & earnings the commission
Igor what are you buying??
Are you talking 100 unit apartment building, office?? Has this commercial agent demonstrated a track record and experience with the asset type you want to go after??
For instance if it's multifamily or retail with triple net leasing or a strip center I am all over it. If it's other commercial such as industrial, office, etc. I will tell them then need to find a commercial broker that specializes in that asset. Finding the asset to purchase is one component but the knowledge of that asset class is where the broker earns their money as well.
I do transactions all over the United States. Just because a commercial broker is local doesn't guarantee they will be better than who you are using now.
I am looking into potentially buying a 4 unit strip mall. All 4 tenants are with net lease. I frankly not sure what the forte of my agent is but he did have good yelp reviews :) We communicated with each other for past 1 month only. I am new to investing but learning new information daily and it likely affects my choices which could be confusing to my agent. For example I told him I am looking for an automotive repair related property but now am thinking general retail strip mall has wider appeal and access to greater pool of tenants. I found two properties and this one in Palmdale, he suggested another one in LA. He works with another agent who has CCIM certification. Given our relatively short relationship I am not sure at this point how much critical feedback and analysis they will provide once I am in escrow if for example they think the deal is not worth it or if they would only be interested in getting the commission...
There are many things to watch out for with retail strips. Careful review of the leases and who is backing them is key along with what vintage they are.
Difference between NN and NNN etc. One means no costs to you and the other could mean structure, roof, parking lots, utilities depending on what is in the leases.
The broker should be helping you with due diligence. I earn every penny for my clients. If you have someone that just puts it under contract and then waits for them to say it's closing you have the wrong broker/agent representing you. I look at due diligence, help with financing to source the best loans, have the inspectors that go nationwide, attorneys, title etc.
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