Top Questions to Ask a CRE Agent

[Matthew Baltzell]

Top Questions to Ask a CRE Broker

from Grant Cardone

If you haven't heard of Grant Cardone, I recommend that you check him out his YouTube channel Real Estate Investing Made Simple and on iTunes at The Cardone Zone or read one of his books. He's a Real Estate Mogul and has been inspiring investors in the CRE industry. He's built up a $566 million portfolio of multi-family properties and isn't slowing down. It's safe to say that he know's a thing or two about the industry and I enjoy hearing his advice.

I’ve comprised the top questions Grant Cardone recommends you ask a Commercial Real Estate Broker. This information is very valuable and can benefit a savvy investor or a beginner.

Top Questions to Ask a CRE Broker:

1. When is the last time that this property traded (Looking for the date)? This information is public record, but it doesn't hurt to ask. It also tell’s you how much the broker knows about the property.
2. What did it trade for ($)? Who traded it (owner)?
3. What’s the upside on this deal?
4. What’s the exit (strategy)?
5. How do I get out?
6. How much money would I spend? (On Value Add, etc.)
7. Would you buy this deal yourself? Would you put your money in?
8. What’s the worse thing that can happen to me in this deal? (He recommend’s to ask this one. Most broker’s wont know how to answer it. You could reframe the question, “If you did know the worse thing, what would you say?”
9. What’s the best thing that can happen to me in the deal?
10. What do you personally like about the deal?
11. What don't you like about the deal?
12. How do you see the deal?
13. How would you underwrite the deal? (How’s the seller looking to structure the contract, Loan to Value, etc.)
14. What’s the distance to the closest Whole Food’s, Starbuck’s, Walmart? (These question’s are good to ask. Properties that are located within a one to two mile radius of Whole foods and Starbucks tend to have a higher property value and bring in a certain type of clientele. This is also true about Walmart. How close is ‘the property’ to a Walmart? There’s a certain type of demographic that shops there and the property value surrounding Walmart reflect that.
15. What’s the school rating? (Parent’s always want what is best for their child. This could be a selling point to move into your multi-family apartment.
16. How would you rate the property location from 1-10? (Come back later in the conversation and ask the same question but different - - - - >
17. If you were to rate the property from a 1-5, what you rate the location? (See if this matches up with their original answer. You might catch them trying to lie to you. Grant does this because if you catch them lying to you once, they will certainly again.)
18. What do you like most about the property?
19. What do you like the least about the property?
20. Other then the price what else would motivate the seller? (Time, Due Diligence, Cash, Assurance to close.)
21. Who is the buyer of the product?
22. How many people are you bidding against? (Grant likes to ask this question to strike and see the interest in the property.)
23. Do you have a favorite buyer at this time?
24. How do I exit this property?
25. In your mind, what is the play on this deal? (Value Add, Buy and Hold, etc.)

Use these questions to help guide you when calling a broker. They aren't the Holly Bible by any means. Like anything you can take the ones the best suite you and overtime you’ll develop your own style when speaking to a broker.

All the Best,

Matthew R. Baltzell