Is this broker telling me legit info on MF investments?

[Jack B.]

Offering to save me on real estate commissions by selling to a REIT. Email below. What do you think, good deal or no? Also, is it typical to get a 30 year loan for MF like SFH or are they shorter, 5-10 year loans? This guy is offering to sell for a "flat fee" plus a 1% loan origination fee when I 1031 into new properties. I suppose it depends on what the flat fee actually is...Assuming I buy a 2 million dollar complex I'm looking at paying him 20K just for that. Depending on the flat fee amount, it might be cheaper to list myself on the MLS and negotiate the buyer agent commission.

-----------------------Couple suggestions:

1. One larger multi-family building is better than a few of similar quality. The primary advantage of multi-family is economy of scale. A single property is going to decrease your operating costs and make the property more profitable.

The other reason, is that closing costs are going to start adding up with more properties. They can be significant.

2. I would recommend selling your portfolio through a residential broker that specializes in Chinese investors trying to get special visas OR sell them together to a real estate investment trust (REIT) that specializes in single-family housing.

I know Seattle is hot right now, but doing them one by one is going to be a time and energy suck, but I am not an expert on Chinese single-family investors.

I can help with a portfolio sale to REITs, which is going to be faster than selling piecemeal and you bypass paying a real estate agent's commission. REITs have the longest investment time horizon and deepest pockets. That would be a flat fee on my end for the financial modeling, pitchbook/prospectus, and communication with their acquisitions divisions.

So, my pitch would be that I can get you through this transformation from Seattle single-family to your Tampa/Orlando multi-family properties in a total of 2-3 months, instead of definitely 8+ months for selling 1-by-1, and bypass paying commissions. In exchange, I would take a flat fee, a fraction of a commission, for the REIT work and a 1% loan origination fee paid by the eventual lender on the new property/properties.

Netting you a few percentage points on the whole transaction and significant time saved. 

[Joel Owens]

The really great brokers  and agents will be in demand and get paid top dollar for services performed. You have to ask yourself ( Why are other brokers and agents SO EAGER to work for less? They wreak of desperation ).

When investors contact me for commercial retail real estate these discussions don't even happen with commission. If they do the investor goes to my delete file in a matter of seconds.

If an investor doesn't value my services and they are contacting me (crazy..but it happens) then I don't need them. If a broker or agent builds a constant funnel of business then they can choose to only take the business that fits their model.

Typically out of every 10 contacts about 4 will go to a closing. The rest are either flaky, unrealistic, trying to do a deal larger than their capability,etc.

I make more in commission than standard rates typically because I dig for off market properties and get a larger fee.

If you believe you are in an ultra hot market then just market yourself and get an attorney to help you out. You will be doing the job of the broker/agent for screening buyers and doing the transaction. If you are fine with that for your time then go for it. 

I always think it's funny to hear conversations about " We don't need brokers or agents, the fees are too high, but please help us at a reduced rate, and by the way again we really didn't need the help. lol" Talking in general and not about the person who created this discussion.