Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here
Pick markets, find deals, analyze and manage properties. Try BiggerPockets PRO.
x
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Account Closed

Account Closed has started 11 posts and replied 41 times.

Post: sellers broker/principal broker split

Account ClosedPosted
  • Real Estate Broker
  • Milford, pa
  • Posts 41
  • Votes 4
Quote from @Steve Milford:

I see it the other way, he gets first crack at a listing you bring. If he has a buyer willing to accept the price the listing is at, it is an easy win, minimal effort for you. 

I am assuming with my answer that you are marketing it through the MLS yourself and through your own efforts. If he controls access to all that, then this is a different story. In my world, all properties go to the MLS and that platform pushes the data through IDX to individual brokerage websites, including my own.


 Perhaps, it would seem like minimal effort. My issue was with his intent-it seems he really was only interested in being the buyers broker here as well..  

Btw-We're talking about commercial properties here- no MLS. And his assistant controls what and when a listing would be displayed on his linkedin platform...

Post: sellers broker/principal broker split

Account ClosedPosted
  • Real Estate Broker
  • Milford, pa
  • Posts 41
  • Votes 4
Quote from @Bruce Lynn:

I think @Steve Milford is correct 100%.  I will also be super surprised at how many buyers he actually brings to your listings and they close.

Maybe check with the other agents in the office if they have the same deal?  Also ask them how many listings they took and how many he brought the buyer on?

Appreciate your answers. I don't know-but like I said something felt off here, if the intent here was to pass it off to his buyers..Plus,Im unsure that hell even market it properly on the company social media platform unless he has no choice.. if hell first privately contact all his buyers first...

There weren't any agents around to chat with-the few that there are work remotely.

Post: sellers broker/principal broker split

Account ClosedPosted
  • Real Estate Broker
  • Milford, pa
  • Posts 41
  • Votes 4
Quote from @Steve Milford:

Whatever you work out is what it is. Its all a worry for nothing in my opinion. Easier to see in dollars and cents. If the traditional model is used, hypothetically if gross commission for the whole transaction was $10,000 split evenly between listing and selling agent, each side would receive $5,000. Initial split means that he would receive $1,750, leaving $3,250 for you. Now if all the $10,000 commission goes to the same brokerage, he receives $6,750 (as principal and buyer's broker) with $3,250 remaining to you. In the end you made the same.

If he is NOT the Buyer's broker, then he is then he only receives the initial 35%. In the end, it doesn't matter because if another agent at another brokerage presented the offer, you would be splitting the gross commissions with them.  

You should still be able to market it as you see fit, appropriately. He may provide oversight as your brokerage would be providing dual-agency, but it is your duty to represent the seller as their fiduciary. If not, I would find a different brokerage. 


 I appreciate your answer. So everything your saying sounds right..Heres what concerns me: When we were trying to work out the split-he actually wasnt willing to do 65%-35%. But then hes like well that 65% would be split when Id bring a buyer..I believe he said he represents 500 exclusive buyers..It seemed his intent was to pass off any deals Id bring in to one of these many buyers..In which case the overall split he said was acceptable to him.. Again Im not trying to prevent him from making money, but the idea shouldn't be that every time I need to pass it off to his buyers.

What do you make of the situation?

Post: sellers broker/principal broker split

Account ClosedPosted
  • Real Estate Broker
  • Milford, pa
  • Posts 41
  • Votes 4

Hi all,

Question regarding arranging a split structure with a principal broker. So we agreed on a 65-35% arrangement. However, he says he represents hundreds of exclusive buyers. In which case, any listing or deal I would bring he would likely try to match up with one of these buyers. I guess you can say he's a sellers broker where his interests look out for the buyer?  He said he'd want half of that 65% split in addition to the 35% since he's got the buyer. Now I suppose he's right- its like we-co-broked. However, isn't it only fair that I should be allowed to market the property properly and receive 65%. I'm not trying to prevent him from making money as much money as he can, but something seems off with such an arrangement, that primarily results in him effectively keeping 67.5% on most deals. Maybe its this is common with off-market listings? Im not sure..

How can I better negotiate/ structure terms in this situation? Or what should I be asking for?

TIA

Post: Acquistions brokerage fee

Account ClosedPosted
  • Real Estate Broker
  • Milford, pa
  • Posts 41
  • Votes 4
Quote from @Bob Stevens:
Quote from @Account Closed:
Quote from @Bob Stevens:
Quote from @Account Closed:
Quote from @Bob Stevens:
Quote from @Account Closed:
Quote from @Bob Stevens:
Quote from @Account Closed:

Question-What do people here in the community think is a fair or reasonable brokerage fee if you find and complete a successful acquisition for company your working for? Am a licensed salesperson if that makes a difference..

TIA


 You mean finding a deal for an investor? If so impossible to answer. I have paid 5k, up to 100k to wholesalers. I do not care what anyone earns, as long as it makes sense to me. 


 

I see okay. But do you have a written agreement upfront with some of these guys or they just know you as a guy whos trusted to pay $5k or say $50k based on just word of mouth?..


 Never a written agreement. I do not ask what their fee is.  show me what you have including whatever fee they want. If it makes sense I take it, if not we negotiate

Good luck 


 Thanks for your input. Looking to hear more from others as well.


 there's is nothing more to it than that. I never ask their fee, who cares what they make as long as it makes sense to me, NEVER look in anyone's pocket. When people look in mine, and its exactly or better then they asked for,  I simple hang up 


 What do you mean you dont ask fee?? He's sending you a deal based on the fee you intend to pay him. I wouldnt deal with someone whos not upfront..

 There ask already has their fee in the PP. WHO CARES what their fee is. As long as it makes sense.  How many have you bought from wholesalers ?


 Well its taken into account of course, but it may not be inherent in the actual price. It often is spelled out separately..  no haven't dealt with wholesalers

Post: Acquistions brokerage fee

Account ClosedPosted
  • Real Estate Broker
  • Milford, pa
  • Posts 41
  • Votes 4
Quote from @Bob Stevens:
Quote from @Account Closed:
Quote from @Bob Stevens:
Quote from @Account Closed:
Quote from @Bob Stevens:
Quote from @Account Closed:

Question-What do people here in the community think is a fair or reasonable brokerage fee if you find and complete a successful acquisition for company your working for? Am a licensed salesperson if that makes a difference..

TIA


 You mean finding a deal for an investor? If so impossible to answer. I have paid 5k, up to 100k to wholesalers. I do not care what anyone earns, as long as it makes sense to me. 


 

I see okay. But do you have a written agreement upfront with some of these guys or they just know you as a guy whos trusted to pay $5k or say $50k based on just word of mouth?..


 Never a written agreement. I do not ask what their fee is.  show me what you have including whatever fee they want. If it makes sense I take it, if not we negotiate

Good luck 


 Thanks for your input. Looking to hear more from others as well.


 there's is nothing more to it than that. I never ask their fee, who cares what they make as long as it makes sense to me, NEVER look in anyone's pocket. When people look in mine, and its exactly or better then they asked for,  I simple hang up 


 What do you mean you dont ask fee?? He's sending you a deal based on the fee you intend to pay him. I wouldnt deal with someone whos not upfront..

Post: Acquistions brokerage fee

Account ClosedPosted
  • Real Estate Broker
  • Milford, pa
  • Posts 41
  • Votes 4
Quote from @Bob Stevens:
Quote from @Account Closed:
Quote from @Bob Stevens:
Quote from @Account Closed:

Question-What do people here in the community think is a fair or reasonable brokerage fee if you find and complete a successful acquisition for company your working for? Am a licensed salesperson if that makes a difference..

TIA


 You mean finding a deal for an investor? If so impossible to answer. I have paid 5k, up to 100k to wholesalers. I do not care what anyone earns, as long as it makes sense to me. 


 

I see okay. But do you have a written agreement upfront with some of these guys or they just know you as a guy whos trusted to pay $5k or say $50k based on just word of mouth?..


 Never a written agreement. I do not ask what their fee is.  show me what you have including whatever fee they want. If it makes sense I take it, if not we negotiate

Good luck 


 Thanks for your input. Looking to hear more from others as well.

Post: Acquistions brokerage fee

Account ClosedPosted
  • Real Estate Broker
  • Milford, pa
  • Posts 41
  • Votes 4
Quote from @Bob Stevens:
Quote from @Account Closed:

Question-What do people here in the community think is a fair or reasonable brokerage fee if you find and complete a successful acquisition for company your working for? Am a licensed salesperson if that makes a difference..

TIA


 You mean finding a deal for an investor? If so impossible to answer. I have paid 5k, up to 100k to wholesalers. I do not care what anyone earns, as long as it makes sense to me. 


 

I see okay. But do you have a written agreement upfront with some of these guys or they just know you as a guy whos trusted to pay $5k or say $50k based on just word of mouth?..

Post: Acquistions brokerage fee

Account ClosedPosted
  • Real Estate Broker
  • Milford, pa
  • Posts 41
  • Votes 4

I see okay. But do you have a written agreement upfront with some of these guys or they just know you as a guy whos trusted to pay $5k or say $50k based on just word of mouth?..

Post: Acquistions brokerage fee

Account ClosedPosted
  • Real Estate Broker
  • Milford, pa
  • Posts 41
  • Votes 4

Question-What do people here in the community think is a fair or reasonable brokerage fee if you find and complete a successful acquisition for company your working for? Am a licensed salesperson if that makes a difference..

TIA