Why You Need a Commercial Broker When Buying Multi-Family Property
Written by: Matt Buroni
Purchasing multi-family investment properties are a lucrative investment option and a great way to put your money to work in an asset that has the ability to pay you a return every single month. A commercial real estate broker will prove to be a valuable relationship that will help maximize your return, with no cost to you. The following are four reasons why you need a commercial real estate broker when buying multi-family investment properties.
Most of us have jobs and obligations that leave us with little time to look into various investment property opportunities. Commercial real estate brokers are constantly looking for new properties to sell and buy for their clients. Based on specific investment needs, they can provide you with the best options. Brokers should have a list of available properties that they can immediately present to you. They are able to find new opportunities in your given market before you can.
The most time consuming part, especially now, is finding good investment properties. Good investment properties are hard to come by and the really good ones are gone before you even know about them. For this reason, it’s better for you to have a professional on your side working to find you deals.
If you are just starting out in the real estate investment world and don’t know where to begin, it is often overwhelming to find the first place to start. A commercial real estate broker will bring you through the process, as they are always going through the transaction process on multiple different properties at a time.
An agent can apply their extensive knowledge on every aspect of a potential deal. There could be an issue with the financial performance of a property or something wrong with the physical property itself that you might not immediately pick up. Your broker’s job is to act in your best interest. They want to make sure that you get the best deal you can. Take advantage of the knowledge a broker has let them guide you in your decisions.
Now that you and your broker have found the property that you are going to further pursue, what should you pay for it? You don’t want to pay too much and lose money on the deal in the long run, and you don’t want to offer something that will offend the seller. Again, you can use the expertise of the broker and come up with an offer price that will start the negotiation process. Your broker has seen many deals and knows exactly how to act to get you the best price possible. Once you have an offer set, your broker will guide you through responding to any counter offers that may come from the seller until you are signing the papers at the closing table.
Your broker will be the one that is responsible for contacting and directly communicating with the seller or the seller’s broker. This means that you actually do not have to speak with anyone else during the process, except for your broker.
The seller pays a commission on the sale of a property, so your broker will be getting paid by the seller of the property as they work for you. If there is a listing broker representing a seller, then your broker will get an agreed upon percentage of the total commission paid by the seller. When you take the cost out of the equation and add in the benefits that you will receive, there is absolutely no reason why you should not have a broker working for you.
If you utilize a licensed commercial real estate broker for the four reasons listed above, you are likely to have much more success along your investment journey. Building a strong and long lasting relationship with a broker is one of the best ways to begin. Not only will you receive the mentioned benefits, but you will receive them at no cost to you. If this seems like it is too good to be true, give a local agent a call and ask them how it works. You will not be disappointed with what you find!