Broker Relationships

[Keeya WangJones]

Hi, I have a trust worthy agent but should I also be talking with a broker? I am guessing brokers have access to properties also before it goes on the market. What are pros and cons with working with a broker? Especially for Multifamily purchases? Anyone from San Diego? Cheers Keeya

[Joel Owens]

Well what a broker is varies by state.

Generally an agent is someone newly licensed. After XX years in business they can generally take the brokers exam and if they pass can open up their own brokerage as a principal or stay at another brokerage as an associate broker.

Not all agents are new and not all brokers have more experience. Some like staying agents. Some states they just call licensees brokers.

The key is not whether a broker or agent but their experience level and are they also an investor.

For example with my clients on commercial retail properties as a principal broker I can view from a land development angle, owner investor, and a broker.

A broker or agent who hasn't done land development or is not an investor themselves can sometimes have a one dimensional view of things as a broker or agent. The more seasoned and experienced you can find the better. Generally the ones with experience and many years of track record are in demand so you have to be ready to go if you want access to off market deals.

Trying owner finance, syndicating without a track record, seller carry back in hot markets for MF a broker /agent isn't going to excited about that strategy when there are buyers buying all cash or putting a good down payment and buying themselves.