Business Brokering + Commercial Real Estate

Specialist · Minneapolis MN (minneapolis, mn) · Member since 2019 · 24 posts · 3 votes

Hey BP Community!

I am hoping for some guidance on the fundamentals of Commercial RE. What tools, resources, subscriptions are critical for a newbie to succeed? Biggest need is on valuation methods/tactics, but we ultimately want to develop a playbook for new partners to plug into!

Sky is the limit!!

Thanks for the guidance/support in advance everyone.

0 Reply

32 views

Most Popular Reply

Joel OwensBusiness Member

Moderator

Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes

Business brokerage is very different from commercial real estate. Unless doing very large business sales not much money in it. Lot's of small owner operators selling business 200k in price and under. It's not worth my time which is why I like transactions because deal size 2,5, 10 million etc.

Podcast Guest on Show #47

NNN Invest53 Reviews

Website View Page

2 Reply

See this reply in the discussion

9 Replies

Jump to latestLatest

Sort by

Greg Dickerson
Developer · Charlottesville, VA · Member since 2018 · 4k+ posts · 4k+ votes
6y
Originally posted by @Steve Gerten:
Hey BP Community!

I am hoping for some guidance on the fundamentals of Commercial RE. What tools, resources, subscriptions are critical for a newbie to succeed? Biggest need is on valuation methods/tactics, but we ultimately want to develop a playbook for new partners to plug into!

Sky is the limit!!

Thanks for the guidance/support in advance everyone.

This all depends on what type of property you're interested in. You can start researching properties on LoopNet and Crexi to get an idea of the fundamentals and the numbers by reading the offering memorandums.

0 Reply
Steve Gerten
OP
Specialist · Minneapolis MN (minneapolis, mn) · Member since 2019 · 24 posts · 3 votes
6y
Types of properties vary! Right now we have a restaurant business in Eau Claire, WI, a printing business (w/office space) in Brooklyn Park, MN & a Boating Company in Brainerd, MN!
I've review LoopNet & Crexi but have heard from folks that those are typically the last resort for potential buyers, right?
0 Reply
Joel OwensBusiness Member
Moderator
Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
6y
Business brokerage is very different from commercial real estate. Unless doing very large business sales not much money in it. Lot's of small owner operators selling business 200k in price and under. It's not worth my time which is why I like transactions because deal size 2,5, 10 million etc.
Podcast Guest on Show #47
NNN Invest53 Reviews
Website View Page
2 Reply
Kelly A.
Wholesaler · Eau Claire, WI · Member since 2014 · 133 posts · 32 votes
6y
maybe use Loopnet to practice number crunching so wen u do come across a good deal, you will be able to pull trigger confidently
0 Reply
Ronald RohdePro Member
Attorney · Dallas, TX · Member since 2016 · 5k+ posts · 2k+ votes
6y
Originally posted by @Steve Gerten:
Types of properties vary! Right now we have a restaurant business in Eau Claire, WI, a printing business (w/office space) in Brooklyn Park, MN & a Boating Company in Brainerd, MN!
I've review LoopNet & Crexi but have heard from folks that those are typically the last resort for potential buyers, right?

Are you saying you also own the underlying real estate? There should be different brokers for each type, you cant effectively market and sell both of these.
0 Reply
Steve Gerten
OP
Specialist · Minneapolis MN (minneapolis, mn) · Member since 2019 · 24 posts · 3 votes
6y
@Ronald Rohde we do not own the RE, we are simply helping the current owner find a buyer (or possibly a new tenant) for the building. We know we can't service every industry, which is why we are on the hunt for specialists!

@Joel Owens businesses produce annual rev between $5MM-$25MM so the deal size is pretty sizable....I guess that's all relative though :-)
0 Reply
Ronald RohdePro Member
Attorney · Dallas, TX · Member since 2016 · 5k+ posts · 2k+ votes
6y
Originally posted by @Steve Gerten:
@Ronald Rohde we do not own the RE, we are simply helping the current owner find a buyer (or possibly a new tenant) for the building. We know we can't service every industry, which is why we are on the hunt for specialists!

@Joel Owens businesses produce annual rev between $5MM-$25MM so the deal size is pretty sizable....I guess that's all relative though :-)

I gotcha. For business brokers, revenue doesn't matter as much as net income.
0 Reply
Joel OwensBusiness Member
Moderator
Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
6y
You can have a high volume business that hardly makes any money. A few blips in additional costs, drop in volume, and you could lose money fast.
I like businesses with fat profits off of low to medium volume. That way if some variables change you are still doing good instead of great but not hemorrhaging cash.
Podcast Guest on Show #47
NNN Invest53 Reviews
Website View Page
0 Reply
Ronald RohdePro Member
Attorney · Dallas, TX · Member since 2016 · 5k+ posts · 2k+ votes
6y
Originally posted by @Joel Owens:
You can have a high volume business that hardly makes any money. A few blips in additional costs, drop in volume, and you could lose money fast.
I like businesses with fat profits off of low to medium volume. That way if some variables change you are still doing good instead of great but not hemorrhaging cash.

Yea, too high of margins indicate to me its ripe for competition. Perhaps heavily reliant on marketing expense too.
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.