IDENTIFYING COMMERCIAL PROPERTY

5 Replies

While I am new at this, I am very familiar with 1031's. At the same time, my needs might be different than most. I am dealing with 2 miilion to invest and want something easy to be managed or part of a larger group.

Either one building easy to manage with NNN lease or part of a larger group that develops buys, manages and sells properties.

Also I talked to a group that I will not identify at this time. They can assist in identifying commercial properties. At the same time, they list properties. 

Firstly, the list price...is that not negotiable as is the case when one buys a home

Secondly, how can this group represent me when they are listing the properties?

I am not asking for anyone to identify properties but rather identifying someone that assists in large commercial real estate purchases at the best terms possible. There are RIA's out there but many have had complaints from investors like me

@Vin Powell everything in real estate is negotiable, including price.  And while I don't know the terms you discussed with the group to which you alluded, brokerage firms often represent buyers, sellers, landlords, and tenants.  It's quite common.  Just make sure the firm discusses the concept of dual agency with you and their company policies on the matter.  Good luck!

@Vin Powell I respectfully disagree with Charlie; everything isn't negotiable in real estate. For example, the investors and developers I work for will not negotiate representation. Either sign-on as exclusive rep for them or find another client. Second, dual agency effectively makes the broker a referee. My clients want a broker on their sideline, not in the middle of the field. Personally, I prefer exclusive representation work because it facilitates an opportunity to develop trust and confidence between client and broker. And by focusing on what's best for my clients, I no longer have to network for new business. I simply answer the phone when it rings. 

Hi Vin,

I would suggest you hop on the phone with a couple different commercial brokers and see which one you might connect with better for your needs.

I used to sell larger apartment buildings but now specialize in retail properties for single tenant and retail strip centers nationally.

I have clients all across the country.

Current individual clients have net worth levels from 1 million to over 100 million. I have other clients with larger money but those are REIT's,funds,etc. and not individuals.

I tend to work exclusively with high net worth investors on the commercial buy side as a principal broker. I am an investor and retail developer myself as well as the principal broker so see an investment from many angles.

Not all but some larger commercial companies can have some downsides especially for buyers. Those companies tend to focus on their listing inventory and teams. The structure they use and high operating costs leads to a (churn and burn) approach. The need to sell their product as fast as possible to any buyer with a pulse to get it off of the inventory sheet and show (another one sold!).

There are some agents for firms that only get 10,000 out of a 100,000 commission. Example a property is sold for 4 million. Listing brokerage makes 2.5% on their side for 100,000 commission. Half is given to the brokers so 50,000 is left. 3 people on a team senior director,director,agent,etc.

The senior director gets a top level split and the agent at the bottom gets close to nothing out of the 50,000.

This is why big firms tend to sell fast and furious as the brokers and agents have to do a ton of volume to make any substantial kind of money.

As a principal broker and owner of my company I get all of it. I can work to find the right properties for my clients even if it takes months to do so. With a 1031 it will take extra planing ahead of time.