Commercial real estate is a team effort to serve clients. I network and work with brokers and agents, paying substantially money, which serves both my client and you. My EBR clients. one per category, are divided into categories. These categories consist of specific types of properties and their value. Example, hotels/motels under 20 units, 20-60 units and over 60 units. The same is true with multifamily. Here we have 3 different clients all in the same category, hotel/motel, but with different properties values. There many be a 5th client that deals in chains or Hotels over 200 keys.
I look for specific properties n behalf of my clientele. Although there are sometimes listed property opportunities, I specifically want the opportunity to purchase properties before they are on the open market or simple off market until we make an offer.
Advantages to Brokers and their clients; why offer me first shot?
1. You are solving your client's problem and you are compensated.
1. A quick decision can be make with a qualified buyer I represent. I will be able to tell you almost immediately, if your price and properties is something a client will buy. We can be closed quickly.
2. Besides transactions being done quickly, they are done quietly. This can be important for several reasons, such as a companies not wanting others knowing what they are doing. Some of my EBR clients fall into this category and don't want others knowing they are purchasing property in certain category or geographic areas.
3. My EBR clients pay. There are 2 types of EBR clients
A. My most common EBR client pays me (my in-house team) to go out and find them what they want. However, my team is only paid what is the equivalent of 1/2 a broker's fee for the transaction. In addition, if a property is found where a shared commission is involved, then compensation from my EBR client is reduced by that amount. There is an exception with some clients. If you are bring me a property before it hits the market, then we can discuss how commission are paid (depending on the quality of the deal for my client). What is important is to come to me first, before solicitation go out to the open market.
B. My EBR clients that pay a higher % compensation, which I share, allowing my network to contact their existing clients for specific types of properties. You can inform your clients that a buyer is willing to make an unsolicited offer, with no commission paid by them, for there property.
Broker and agent Issues
I have both residential and commercial brokers/agents within my network that help me serve my clients, creating a win/win/win. As I said before, it is a team effort. Although there are over 42,000 residential agents I can tap into within BHHS across the country, the vast majority have binders on and only residential transaction resonates with them. They don't recognize the opportunity of getting compensated for a simple referral that helps both their client and themselves.
Just as I limit my EBR clients, I also limit the number of brokers/agents when it comes to the higher percentage paying EBR client needs. I have found agents will make unsolicited offer to more than just their clientele saying they represent the buyer. When multiple brokers contacting the same property own and tell them they have a client with an unsolicited offer, it can drive up the price and a transactions causing it to falls off the table. I understand it is difficult, as most of us commercial brokers have big egos, but you have to bring me in right away. I also then have the issue of how to share the compensation. IT IS LIMITED!
If you are broker outside the USA and have buyers for USA commercial properties, give me a call and we'll discuss how to work together.