Updated 9 months ago on .
Buying my first CRE property - seeking advice on acquisition process
Hi BiggerPockets - I have purchased a few residential properties over the years, and am working on purchasing my first CRE property. I plan to partner with an attorney when I'm further into the acquisition process to draft and review PSA / related documents to protect my interests. My questions below are around how to best partner with an agent to ensure the relationship is productive for both parties.
Currently, I mostly source deals on my own through Crexi and Loopnet. While I see a lot of value in working with agents to source (off-market) deals especially in the CRE space, my biggest perceived need now is having an advisor to act as a second pair of eyes and 1/ review my analysis and projections; 2/ ensure that the terms outlined in the LOI are reasonable; 3/ point out any blind spots I've missed.
Below are a few potential ways I could go about this.
1. Engage an agent specialized in my desired type of asset as a consultant.
2. Traditional buyer / agent relationship - source deals, negotiate, prepare paperwork etc.
I am more interested in #1 because I am very proactive in identifying deals on my own (with some limitations of course). I would really appreciate you all's feedback, especially around the compensation framework and effectiveness in addressing the need mentioned above. e.g. If I go with #1, should the compensation be based on a reduced commission of the purchase price, or a fixed fee? Is there an industry standard?
Thank you all for your time.