Is it OK to talk to both the Broker and the property management?

Question

Hi there,

I am new to Real Estate investment and am in the process of analyzing a deal. I was wondering if its OK to talk to the property management as well as the broker or I can just work with the broker?

Thank you

Georgina

Chris Davidson · Answer

@Georgina Graham Yes it is ok to talk to both, but if you are talking to the seller's broker remember their duty is to their client. As well as if it is the seller's PM.

Mike Swenson · Answer

Yes, it's a great idea to get 2 sets of eyes and opinions on the deal. The agent/broker is best suited to determine the properties' current feasibility, is active in the market and will know if it's a "good deal" based on sales price, current market trends, etc and help with the purchase. The property manager will have a better read on ability to place tenants, do tenants tend to stick around long-term in the neighborhood based on type of property it is, rents (and future projections), structuring the lease, and executing the long-term strategy of maintaining the asset, etc. So both play valuable, yet different roles.

Joe Schaak · Answer

@Georgina Graham It's a good idea to talk to as many folks as you can. If the broker brought you the deal, it would be right to ask that person for the PM contact info and let them know you would like to have a chat with them. If the broker wants to be on that call, no problem. Any reputable broker with a legit deal won't have an issue with this.

Joe Norman · Answer

Licensed professionals have to follow ethics rules about advising other licensees' clients, however is 100% okay for the consumer to talk to multiple professionals. And, as Drew points out, you probably should be in order to get multiple opinions.

Drew Sygit · Answer

@Georgina Graham what are you trying to do?

If you're buying a rental through an agent, they should be working with a PM company to manage it once you buy it.

Also, doesn't hurt to have two sets of "eyes" on a potential purchase - especially when the PMC will have to manage what you buy.

Is it OK to talk to both the Broker and the property management?

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