1031 - Broker Commission and Role Questions

[Andrew Pratt]

Hi All,

I am a licensed broker in New York. I have my own business that focuses on apartment rentals in NYC. Have been doing this for 10+ years and have a healthy rolodex of landlords/management companies that I have long term relationships with. I also have a friend who is selling a property in the city and looking to purchase something else in a 1031 exchange. Likewise I have some good leads from some of my landlords who are interested in potentially selling some of their investment properties (6-8 family rental buildings in Brooklyn). I've never done a 1031 exchange. Looking for any tips and advice on protocols and expectations if I am to act as the broker here in the event that I bring a deal to the table and my friend ends up buying a building from one of my landlords. Presumably I would be the only broker involved. Specifically wondering:

- Who pays the commission?

- What is reasonable/typical commission to ask for in this scenario and market (NYC/Brooklyn)?

I'm familiar with cap rates, putting together basic building setup sheets, etc. Assuming I bring a deal to the buyer that he wants to move forward on, what other steps would take between now and closing--are there specific 1031 broker paperwork templates, etc?

Any info would be appreciated, thank you.