The Broker’s Point of View

This article will focus upon looking at you and the potential buyer from the broker’s point of view. So many articles are written by commercial real estate and how to approach it but is also important to know what it looks like from the other side of the table. The broker has as much riding on the process many times as the investor does.

Let’s start by looking at a listing from a listing broker. When the listing broker brings a buyer to the table and recommends the seller moving forward with that particular buyer, it is because of the recommendation of the broker many times that a seller move forward. If the buyer backs out, the seller is not necessarily unhappy with the buyer but rather with the listing broker because of the recommendation given. It is important for the broker to know what the buyer is like because it is the broker’s reputation that is on the line.

Any time you come to the table as a buyer, the broker is going to do due diligence on you to make sure that you can close the deal. That ultimately is the main key and can be more important than price. The broker is going to check on your past dealings and that you followed through on deals in the past. The broker will then rank potential buyers and will often recommend that the sellers sell to the buyer at the top of his or her list. This is very important for any buyer to know so that you can set yourself up very well. If you worked hard to develop a reputation and the listing broker called around to people you worked with in the past and you come highly recommended, your name will move higher on the listing brokers’ ranking list. That broker will recommend to the seller that you be the one who buys the property because you will follow through.

If you have no brokers you worked with in the past and had not been in commercial real estate very long, you may want to go into a commercial brokerage with a check and a list of your net worth. Showing net worth and proof of funds is very important because you can show the broker that you are able to close. Most instances of buyers failing to go through on the deal occur due to lack of money. If you show the broker that you have the money, you have removed a major obstacle from them recommending you to their seller.

The broker is going to pay attention to see what your reputation is like. Getting the deal closed is important because the broker’s paycheck comes out of the closing. A broker will do what is necessary to make sure to protect his or her feet. Make sure that your brokers are well taken care of and you’ll be happy in the end.

Hopefully this article on the broker’s point of view gives you a better sense of what you can do to say yourself up right in the eyes of the broker. The broker’s reputation is on the line until the transaction is closed so he or she will make sure to set themselves up right in the eyes of the seller.

Apartment Building Loans – What You Need to Know For Today’s Market

It’s a tough time for the real estate market today. Mortgage banks are making their requirements more stringent in both residential and commercial markets, which make it harder for investors to invest in new properties. This means that those looking to buy apartment buildings need to be smart with their decisions and make sure that he is working with a reputable company that has experience with this type of investment when the economy is low. The following is some current information about how the mortgage banks are working.

The rules will not be bent anymore.

In the past, it was not uncommon for a borrower to be a little under the minimum requirements for a loan and still qualify. This is no more. Underwriters at these banks are becoming stricter when it comes to the requirements for getting these loans. In order to qualify, your net worth must meet the minimum requirements or you’re out of luck.

There’s aren’t many loan programs for commercial real estate acquisition or refinance left. In the past few years, it has become increasingly difficult to find a mortgage broker who specializes in apartment building sales. It’s much simpler to find one that specializes in residential real estate opposed to commercial real estate. Not too long ago, it wasn’t very difficult to find and qualify for an 85% loan-to-value mortgage for an apartment building, but the same is not true today. Those people looking to invest in this type of real estate really has their work cut out for there because although there are plenty of brokers out there, it has become increasingly harder to find one that specializes in this type of real estate. I, personally, have never found a broker that handles residential real estate that also has a good track record with commercial real estate.

When you finally do find a mortgage broker that specializes in apartment or commercial real estate, there are several factors that need to be taken into consideration.

First, it is crucial for the investor to understand the fees that will be involved. In most cases, commercial mortgage brokers will charge only one point in fees on an investment. In my past experiences, I’ve seen new apartment building investors try to contact the banks themselves in attempt to avoid this fee. This doesn’t work. Independent investors have to realize that any bank that handles apartment building investments is a broker and will sell their loans to the secondary market.

What most first-time apartment building investors may not realize is that by avoiding a broker to save money, it can cost more money in the long run.

Surprisingly, you will often find the best interest rates when going through a commercial mortgage broker. In addition, when you attempt to get the loan yourself, you’re cutting your options short. When going through a bank independently, you will normally be offered only one or two programs for this type of investment, but when you use a mortgage broker that specializes in this market, your options more than double. This allows you to choose the program that is right for your unique investment.

Hiring A Commercial Real Estate Broker For Leasing Office Space

It may seem like an arduous undertaking to consider renting office space for your business, especially if you have never done anything like it before. There are so many different listings available on the market, and they all very in leasing costs; all of this can be too much to handle.

Apart from the issue of considering all the available units, you must first figure out exactly what it is that your business needs, in terms of office space. All of this can be very overwhelming, as you attempt to find the best office space location for your business.

The thing to keep in mind is that you need not face all of these problems, as you try to find the most ideal location for your business. You can do this by seeking the professional help of a commercial real estate broker.

These commercial real estate brokers do their job just like real estate agents. The only difference is that brokers focus more on doing business with buyers of commercial space, as well as owners.

Commercial real estate brokers also work just like brokers, in that they serve to aid those that need help in locating the best office space for their business, given their budget range and conditions. These brokers are equipped with lengthy lists of owners of commercial space, and they are sure to help you discover at least two prospects that meet your requirements and budget range.

In doing business with a commercial real estate broker, keep in mind that you must be forthright about your budget range and conditions, and see to it that you enumerate everything that you want and need for your business’s office space. In doing this, you will be helping your broker help you locate the best units.

Request your broker for about three options, and ask him or her if he or she could set up a viewing schedule for these locations, and perhaps your broker can even arrange an appointment with the owners. Being able to see the units firsthand and talking about matters of concern with the owners should be able to guide you in singling out the best unit for your business.

As expected, it does not cost very little to afford the services of a commercial real estate broker. On the other hand, having the advice of a professional in these types of circumstances will be sure to alleviate you of stresses, as well as aid you in better transacting with owners.