All Forum Posts by: Account Closed

@Jim Growfer to clarify one point on this. NOI is your income BEFORE your debt service. Cashflow is what you have left after you've made your debt payments.

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As someone who loves to catch up with investors over a good beer, I've enjoyed the increasing popularity of microbreweries over the last ~10 years. I usually go for a Wit, but sometimes I'm in the mood for an IPA... so this article caught my eye.

https://www.kiplinger.com/article/real-estate/T050...

Summary:

- I: Intrinsic Value - Location, Appealing Design, Healthy Economic and Population trends

- P: Price - You make money when you buy right and force appreciation. Understand how price-per-unit and rents for the subject property compare with the local market to know how much value you can add.

- A: Affordability - Be sure your units are still seen as a good value to your target market once your turnaround plan is complete.

I think I'll use this as a cheeky illustration of strategy next time I'm having an IPA with a potential investor :)

0 Votes

Keep it simple. Some folks put too much IMO... multiple phone numbers, fax numbers, QR codes, Twitter handles, etc... Mine has 2 sides: 1) Logo, Company Name, Website, 2) Name, Title, Email, Phone

Should be about $10 to get started at a site like Vistaprint. I personally like to choose a different/catchy style so mine sticks out a bit in the stack.

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Thanks, everyone, for the follow-up responses. Sounds like it's acceptable to have the finder assist as a consultant or other capacity to compensate for the value they're bringing. Appreciate everyone's ideas.

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Originally posted by @Don Konipol:

@Barron Brittingham

Someone not licensed as a real estate broker, can not legally collect a commission on the sale of real property. Most people don’t realize that someone licensed as a real estate agent, but not a principal broker, can not collect a commission either. Only a licensed broker can legally collect a commission. A licensed agent must be formally sponsored by a licensed broker, who then collects the commission and passes on the agreed upon share to the agent.

Now, in your case the person introducing the buyer is not licensed as either broker or agent. You want to know if and what would be appropriate payment for this service. To give my opinion, I would need clarification of some circumstances

1. At the time of the offer, was your property listed with a real estate broker?

2. Was it an exclusive listing where you need to compensate the listing broker regardless if the property sells during the listing period.

3. If yes to the above how much did you pay the broker.

4. How did the ‘finder’ come to know about the property being for sale?

5. Is the finder being compensated as a ‘bird dog’ by the buyer?

6. Does the ‘finder’ own an interest in the entity that bought the subject property?

When I have the answer to these questions I will give you my opinion as to an appropriate compensation, if any. As you know realize, based on the information you provided, you do not legally owe a commission.

One further point of clarification. Just because the ‘finder’ can not legally receive a commission doesn’t mean you can’t legally pay one. It becomes his problem, not yours. Best if you decide to pay anyone a fee it is done at closing, and appears on the closing statement. Again, if the ‘finder’ has a problem with this it’s his problem, he may need to become ‘legal’ should he wish to pursue this line of work.

Yes, property is listed with a broker
No, broker does not get paid if the property doesn't sell
Broker will get 3%
Finder heard about the property through a family connection
No, buyer is not compensating Finder
No, Finder doesn't own an interest... just adding value by making a connection

Appreciate your thoroughness in answering my question. Thanks!

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@Matthew Rembish second the recommendation on reading Crushing It. It was a real eye-opener for me.

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Got it... thanks all!

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Sorry, I should’ve clarified... person is not a licensed agent. Just someone making a connection that leads to a deal. Is a commission/finder’s fee allowed?

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If you have high-value real estate on the market and someone brings you a buyer who closes the sale... what would you expect to pay that person as a commission or finder's fee for making the connection?

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Great job on the 8-plex... love the story. I agree... hindsight will make you want to kick yourself, but we just have to look ahead. Good luck this year!

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All Forum Posts by: Account Closed

Account Closed has started 6 posts and replied 80 times.

Post: Can someone help me analyze a deal? i dont understand cash flow.

Post: Good article for you beer-loving RE investors

Post: New to Syndication - what should my business cards say?

Post: What's the typical commission/finder's fee for bringing a buyer?

Post: What's the typical commission/finder's fee for bringing a buyer?

Post: Multifamily Real Estate Investing

Post: What's the typical commission/finder's fee for bringing a buyer?

Post: What's the typical commission/finder's fee for bringing a buyer?

Post: What's the typical commission/finder's fee for bringing a buyer?

Post: I bought this 8 unit multifamily off market and its amazing