Exclusive or Non-Exclusive for First Time CRE Investor?

[Michael Heller Chu]

Hi everyone, 

I have a group of people who are interested in investing in commercial properties in my area. However, this will be my first time as the Operator on a CRE investment. What is the thinking on whether a first time Operator/Investor should sign an exclusive agreement with a commercial broker? I have a broker in my network who is highly competent, does a lot of volume in the CRE space in my location, and will help me underwrite the deals I'm considering. I find this all to be incredibly valuable.

At the same time, I might be limiting myself by being in an exclusive with a broker. 

For someone in my position, is there a consensus on whether it would be better to sign an exclusive with a seasoned broker or go it alone? 

Thanks so much for your input! 

[Taylor L.]

Buyer's agents are pretty uncommon in the Commercial space. Any commission they earn will have to be added to the purchase price. This broker is looking to protect their interests and it's understandable. Are you willing to pay extra for the broker's commission? Are you able to get out of the agreement if it's not working out?

It's nice that they're willing to help with underwriting, but at the end of the day it'll be your problem if the underwriting is wrong. See if you can find a class on underwriting as a start. If you can get an experienced investor on your team as well that would be great.