Financial Advisor · LITITZ, PA · Member since 2012 · 2 posts · 2 votes
As a syndicator of commercial real estate investments (currently multi-family), what would be the benefits or detriments to the syndication business of becoming a licensed real estate agent for commercial real estate. How can deals be structured or agent/broker arrangements be negotiated to minimize constraints and conflicts of interest with a growing syndication business. I know this question has been asked and answered a million times for SFH investors, but what about for syndicators of CRE?
No benefit; could be detriment. Sellers brokers won't talk to you if they know you are licensed (which you will have to disclose) and will take part of the commission. They want to sell the property to people as a "pocket listing" so they can get the whole commission themselves. At least that was my experience when looking for deals.
I don't see any issues. Selling brokers will sell to you still as long as you aren't trying to take their commission. I have a license and don't use my license when a broker that has a listing brings a deal to me that I want to buy. The brokers know that I am licensed and won't "steal" their commission. This still allows me to get my own listings or bring buyers to other listings.