Investor · Albany, GA · Member since 2009 · 158 posts · 25 votes
I was having this discussion the other day with another note buyer. I have noticed that brokering has exploded in the note space which is scary. However I have also noticed brokers charging agent prices (6%) on note sales. My question is, who is really suppose to pay brokers fees. I am all for someone getting paid, but I am not paying someone 3-6% for introducing me and emailing me a list. If this was regular real estate the seller would pay those fees. So why are buyers being forced to pay broker fees in the note space.
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
9y
Because the sellers are not paying any fees, and they don't even know these yahoos are peddling their stuff most of the time. If you're getting "notes" with prices like "$XZY, plus 3%", you're wasting your time.
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
9y
Because the sellers are not paying any fees, and they don't even know these yahoos are peddling their stuff most of the time. If you're getting "notes" with prices like "$XZY, plus 3%", you're wasting your time.
Investor · Miami Beach, FL · Member since 2016 · 486 posts · 216 votes
9y
George you don't have to pay broker fees. Just go out and find your own note sellers. There are several ways to do it which includes a lot of advertising, mail out campaigns, telephone calls, etc. Way too time consuming for me as I would rather focus on valuation & DD part of the note purchase than doing all this clerical stuff. Therefore, I will gladly pay broker fees and will just incorporate that fee into my valuation and make an offer based on the numbers that work for me.
Real Estate Broker · Northwest Indiana, IN · Member since 2011 · 2k+ posts · 2k+ votes
9y
Brokers in this space email around lists and wanting a fee is nothing new. Filtering through that is somewhat related to counterparty risk, which deals with understanding who you are actually dealing with. That won't ever go away.
We do help folks with due diligence and trading and it involves far more than simply sending an email. If you ever have questions about any of that @George Frye feel free to send me a message I believe we are already connected.