Loopnet, Good, Bad, Necessary??

Buying & Selling Real Estate
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Loopnet, Good, Bad, Necessary??

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Full-Time Investor · Charlotte, NC · Member since 2009 · 2k+ posts · 1k+ votes

Anyone had any experiences buying or selling a property with Loopnet? If you listed your property, would you do it again. In other words, did you think it was necessary? Anyone know how to get a discount on Loopnet to get your listing in front of all readers, not just the paid members of Loopnet? Thanks. :D

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Will BarnardPro Member
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Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
15y

I also like loopnet but only for commercial properties. It can be expensive to place ads, but a necessary evil to get maximum exposure for your commercial deals.

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  • Malcolm Payne
    Real Estate Investor · altadena, CA · Member since 2010 · 7 posts · 1 vote
    15y

    how about listing your property on bp also craigslist. what are you selling, what is the price, financing terms, address,square footage, lot size. Basically anything you can think of to make it more appealing to a potential buyer.

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    OP
    Full-Time Investor · Charlotte, NC · Member since 2009 · 2k+ posts · 1k+ votes
    15y

    thanks malcolm...it's listed on bp..if you want to check it out, you can see the link from my profile

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  • Steve Crawford
    Real Estate Attorney · MO · Member since 2010 · 57 posts · 64 votes
    15y

    I have purchase off of Loopnet. Shopping centers. But have never sold anything. I like the site. I was a paid member for some time, but depending on how you search, I dont think it is a great advantage.

    Have sold a lot on CraigsList (all SFH) was a lot better couple years ago before it became so popular. That sounds weird, but seems like the scams, re-posts, top-posts, took over.

    3Reply
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    OP
    Full-Time Investor · Charlotte, NC · Member since 2009 · 2k+ posts · 1k+ votes
    15y

    steve, thanks for you feedback. i like craigslist too, but agree with your comments...a lot of the buyers seem to be tirekickers as well..i'm trying to reduce potential buyers bothering my tenants...

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  • Jon Klaus
    Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
    15y

    Craigslist is so hard to search, especially across all the cities. I think if you want the commercial brokers to see what you've got, you need Loopnet or Costar or both. With commercial, especially larger, you are more likely to find an out of town/state/country buyer.

    I really like the Loopnet app for iPhone. It's not MLS, but its getting closer all the time.

    5Reply
  • Will BarnardPro Member
    Moderator
    Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
    15y

    I also like loopnet but only for commercial properties. It can be expensive to place ads, but a necessary evil to get maximum exposure for your commercial deals.

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    OP
    Full-Time Investor · Charlotte, NC · Member since 2009 · 2k+ posts · 1k+ votes
    15y

    will and jon, thanks for the feedback..needing opinions here...do you think i should pay the loopnet fee or the listing agent?

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  • Steve Crawford
    Real Estate Attorney · MO · Member since 2010 · 57 posts · 64 votes
    15y

    One thing I have noticed when shopping Loopnet.

    Pick your state and county and type in type of prop e.g. multifam then (non member) search............shows you half and then cuts you of and says "premium members only".

    Now, go back and enter same state and county, but select multifam, shopping centers and hotels and see if you dont get some "different" multifams....

    0Reply
  • Vikram C.
    Real Estate Investor · Phoenix, AZ · Member since 2009 · 1k+ posts · 1k+ votes
    15y

    It's definitely worth it, Bryan. When I was looking for a MF to buy, I used both CoStar and Loopnet. The former has a nicer interface but the latter has a bigger audience. I also spoke to many commercial brokers and chatted with them about the services and they all said that they get more sales from Loopnet.

    Regarding whether to list it with a local commercial broker, I would probably do that because commercial RE sales, unlike residential, is still a bit more than just listing a property on a database.

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    OP
    Full-Time Investor · Charlotte, NC · Member since 2009 · 2k+ posts · 1k+ votes
    15y

    thanks for the comments vikram...good to know loopnet is worth it...my question may not have been clear...what i meant was, who's responsiblity do you think it is to pay the fee to list on loopnet. should i pay the fee, or should my listing agent pay the fee? i think the listing agent should pay to market the property on loopnet, but i wanted to check with ya'll first to see if i was being unreasonable. thanks.

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  • Vikram C.
    Real Estate Investor · Phoenix, AZ · Member since 2009 · 1k+ posts · 1k+ votes
    15y

    I have never sold a commercial property, but I would expect the listing agent to do it.

    0Reply
  • Jon Klaus
    Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
    15y
    Originally posted by Vikram C.:
    I have never sold a commercial property, but I would expect the listing agent to do it.

    Agree, they need to market your property. Loopnet is #1 for commercial listings, so you need to be on it. And a premium membership isn't that much for anyone who uses it regularly.

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  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    15y

    I can comment on this as commercial is all I do.

    Whether it's on Costar or Loopnet will depend on what type of product you are offering.There are all asset classes on both platforms but Costar is more heavily on the Office side and corporate properties.

    Loopnet is more heavy on retail,multifamily and the sellers are all over the place. Loopnet anyone can put on and Costar you are a broker.

    With Loopnet they offer free searches but about 80% of listings are not premium listings so they do not show up to the majority of buyers.

    The majority of buyers do not want to be paid subscribers so you have to list the property as premium to show up to them.

    I will tell you Bryan that if I am the broker marketing your property I will vet you the seller hard to make sure you are selling at a great price that buyers will pay.So before I take on any seller a commercial marketing campaign can run into the thousands sometimes.You better believe I look long and hard before taking on that business.

    For a broker just like an investor it is an investment in a property.If I the broker spend X will I get XX in return based on the list price of the seller??

    Loopnet charges per listing and is how they make their money and can get VERY expensive quick.Showcase and all that junk with national advertising is a waste of time.No amount of money in the world will sell an overpriced listing.

    With all that said I do get great results on Loopnet with being the paid member.

    What are you trying to sell?? Usually larger stuff is on there but there are some quad's etc.

    Before spending money on marketing you have to determine if your asset is priced right or nothing else matters.

    I have been using Loopnet for about 5 years.

    Hope it helps

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  • Dale Osborn
    Mobile Home Investor · Spanaway, WA · Member since 2008 · 1k+ posts · 578 votes
    15y

    I have suggested many times to the staff at loopnet that if they dropped their premium rates to $20/month instead of $80/month they would have more members and probably more income in the long run. I have not been there lately to check on price ranges so $80/month may not be the right price. To be able to see all the listings, they used to charge $40/month, but if you listed something - it was just a basic listing.
    In the MHP arena ALL of the commercial brokers I have talked with consider it a waste of time to list the property there. They really stick their noses up and flatly state they will not put the info onto loopnet. For MHPs the better place to list is at mobile home park store.

    0Reply
  • Jon Klaus
    Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
    15y
    Originally posted by Realtyman:
    For MHPs the better place to list is at mobile home park store.

    Frank Rolfe, an active BP blogger and owner? of the Mobile Home Park Store should be pleased with your comment. I've noticed they've revamped and have even more parks on their site now.

    0Reply
  • Dale Osborn
    Mobile Home Investor · Spanaway, WA · Member since 2008 · 1k+ posts · 578 votes
    15y

    David Reynolds also posts here on BP - I think he is the main owner with Frank as an advisor/co-owner.

    0Reply
  • Jeff S.
    Lender · Los Angeles, CA · Member since 2009 · 1k+ posts · 2k+ votes
    15y
    Originally posted by Joel Owens:
    With Loopnet they offer free searches but about 80% of listings are not premium listings so they do not show up to the majority of buyers.

    This is regional, Joel. A few years ago I was getting weekly high pressure sales calls from LoopNet to subscribe. As a buyer only, and only in southern California at the time, I told her it appeared almost everything was visible to me and that very few of the listings showed as premium. This took the wind out of her sails a bit and she coyly agreed that I was able to view a majority of the southern CA deals I was interested in. Thankfully, the calls ended.

    0Reply
  • Jon Klaus
    Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
    15y

    Jim Johnston posted here some last year and is connected with them too. I know we are getting off topic but I'd like to go to their MHP bootcamp. I beleive the next one is in Atlanta in March. Anyway, I agree that their website beats Loopnet for MHPs.

    0Reply
  • Brian Essex
    Investor · San Diego, CA · Member since 2011 · 45 posts · 0 votes
    15y

    I agree that Craigsist would be your better choice if its a SFR

    0Reply
  • Dale Osborn
    Mobile Home Investor · Spanaway, WA · Member since 2008 · 1k+ posts · 578 votes
    15y

    There is another commercial site CIMLS that I used to be a member of when a realtor. I did not like the programming of the site. They pitched it to outperform loopnet and take over the commercial listings market. I do not know what the fee is for membership as it has been over 5 years ago.

    0Reply
  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    15y

    Hi Jeff,

    I think you are getting confused a little on how Loopnet works.They want to drive as many fees as possible monthly from the buyers and the sellers.

    So for instance I just did a basic search in California for multifamily 50 units and above.

    148 results came up.Out of those 148 properties 117 were visible as a basic search and 31 were padlocked.So roughly 20 plus percent of the listings were not visible.

    The 117 that were visible to a free basic member the sellers had to pay for a premium listing to show up.The padlocked ones are free listings the seller put on Loopnet and didn't pay any money.

    So if you are a seller putting a free listing on LOOPNET only premium buyers will see it and free basic members it will be padlocked. If I as the seller pay the monthly fee my listing will show to the premium and the basic buyers.

    Either way Loopnet will get their money.

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  • Jeff S.
    Lender · Los Angeles, CA · Member since 2009 · 1k+ posts · 2k+ votes
    15y

    Me? Confused? That’s usually a given, Joel. :wink:

    As I’ve understood, either you as a seller pay for a cheapskate like me to view your listing, or I as a buyer have to pay for the privilege. I think this is the same as what you’re saying. For the areas I looked at, the majority of sellers were willing to pay and I guess the LoopNet sales agent agreed.

    I think I see the difference. You used the word "padlocked," referring to the image on the listing, and I incorrectly used the word "premium," which is really a LoopNet membership level.

    1Reply
  • Bryan Hancock
    Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
    15y

    We bought an apartment off a Loopnet listing after looking for 6 MONTHS to find a good deal. You can find them on there, but for the most part the site is garbage for those looking for deals.

    The site is likely fine for those that want to buy at market prices or sell property.

    3Reply
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    OP
    Full-Time Investor · Charlotte, NC · Member since 2009 · 2k+ posts · 1k+ votes
    15y

    thanks for the feedback guys...i'm listing a 10 unit building of mine...gross income of about 4k/month, listed at 249k...if i pay an agent commission, i'm bumping price up to 269k...thanks for the advice and tips...glad to see i'm not being unreasonable, expecting the listing agent to pay for the marketing expenses...and joel, thanks especially to you for pointing out your first hand account...if anyone is interested in my property, there's another thread going on it, but it's also on my profile, and who knows...after this thread, you just may find it on loopnet as well..thanks all

    0Reply
  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    15y

    The problem with Loopnet isn't that everything is bad but the sellers who overprice and also the listing brokers who take them.

    Also I find the data put on there is the biggest junk with inaccurate information.I tell sellers all the time the buyer is just going to find out what you are hiding in due diligence.So you need to call a spade a spade and take the hit and sell it.

    The buyer will just cancel the contract or ask for a price reduction once they see your numbers are fluffed.

    Brian I am assuming you own a Class B to Class C building that is a 10 unit.You said gross income of say about 4k a month so say 3,900.

    Has this gross income stayed that way for at least the last 6 months or longer?? If not the buyer won't base the offer on that income as the trend hasn't stabilized long enough.

    What kind of reports have you kept on the property.Example the rent roll and what day the tenant paid,how many times late,the strength of your leases,how large of security deposits were taken,how many complaints each tenant files,etc.

    The less records you have and want the buyer to take your word the lower the offer price will be to compensate for the unknown risk.

    So based on the 50% rule.

    3,900 X 12 months = 46,800 divided by 2 = 23,400

    So at a 10 CAP with no deferred immediate CAPEX your sale price is 234,000.

    269,000 equals a 9 CAP rate.If your property is in a decent area I believe you will get activity at that level.

    Good luck and I hope you sell it.

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