Lawyer or RE Agent for turnkey investments?

[Jeremy Schreiber]

Hi BP Gurus,

It appears that when investing with a respected turnkey company, they attempt to sell directly to you.  Their sales people are effectively serving as the real-estate agent, which creates some mis-aligned incentives.    Should I bring my own real-estate agent to help navigate the contracts?  Would the turnkey company pay their 3% commission if I did?   

Should I instead bring a laywer to the table?  

Does anyone have advice on how best to proceed, and what professional advice is necessary before signing?

Thanks

[James Wise]

Originally posted by @Jeremy Schreiber:

Hi BP Gurus,

It appears that when investing with a respected turnkey company, they attempt to sell directly to you.  Their sales people are effectively serving as the real-estate agent, which creates some mis-aligned incentives.    Should I bring my own real-estate agent to help navigate the contracts?  Would the turnkey company pay their 3% commission if I did?   

Should I instead bring a laywer to the table?  

Does anyone have advice on how best to proceed, and what professional advice is necessary before signing?

Thanks

You'd need to ask if they'd pay the 3% commission. It's probably a case by case basis. If they list properties on the MLS they may be willing to do so but you don't know if 3% is what they've even offered on the MLS. A lot of people think it's a rule that sellers or listing agents offer 3% to buyer's agents. Not the case. It's all about supply and demand and how much the seller values what the buyer's agent brings to the table.

In the event where the company found you, engaged with you, then at the last minute you wanted to being in your own agent it's doubtful they would value what the agent is bringing to the table very much as they have for the most part already procured the sale.