what would a reasonable commission be on a purchase of 23M

2 Replies

I am working with some investors and I have a buyer who is looking at a potential commercial discounted property in the range of 23M

I would like to have something in place with the buyer/investor before I establish the opportunity on this transaction.  If I can get some help in structuring a deal so that the seller (who is a trader getting some amount of control over the asset from the bank, at the moment) doesn't circumvent me in order to be able to offer this distressed property.

If you aren't a broker, you're elephant hunting and since you're asking here, you're hunting with a BB gun. If you're lucky they will give you some scraps for your time, you aren't going to lock up any 20+M dollar transaction under any agreement unless you have a license, IMO. Seen this many times, what you earn is based on your expertise and how much you facilitate the deal, and you'll need to justify any fee. You might have a personal relationship with your buyer, they might protect you, but in that kind of game you can get your clock cleaned. I suspect there won't just be an attorney involved, there will be several attorneys.

Everyone needs an elephant hunting trip to learn, I suspect it will be a learning experience, good luck. Oh, BTW, a broker might take a half point to one point, certainly not 3 or 6 or 10%. (That's 113K to 230K) Expect it to take 6 months to a year depending on what it is.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Join the Largest Real Estate Investing Community

Basic membership is free, forever.