what would a reasonable commission be on a purchase of 23M

Question

I am working with some investors and I have a buyer who is looking at a potential commercial discounted property in the range of 23M

I would like to have something in place with the buyer/investor before I establish the opportunity on this transaction.  If I  can get some help in structuring a deal so that the seller (who is a trader getting some amount of control over the asset from the bank, at the moment) doesn't circumvent me in order to be able to offer this distressed property.

Bill Gulley · Answer

If you aren't a broker, you're elephant hunting and since you're asking here, you're hunting with a BB gun. If you're lucky they will give you some scraps for your time, you aren't going to lock up any 20+M dollar transaction under any agreement unless you have a license, IMO. Seen this many times, what you earn is based on your expertise and how much you facilitate the deal, and you'll need to justify any fee. You might have a personal relationship with your buyer, they might protect you, but in that kind of game you can get your clock cleaned. I suspect there won't just be an attorney involved, there will be several attorneys.

Everyone needs an elephant hunting trip to learn, I suspect it will be a learning experience, good luck. Oh, BTW, a broker might take a half point to one point, certainly not 3 or 6 or 10%. (That's 113K to 230K) Expect it to take 6 months to a year depending on what it is.

Richard C. · Answer

Are you a licensed broker?