All Forum Posts by: Steve Morris

If this is your first property in a long-distance location, would really, really recommend against it.  You're putting your whole trust (when acquiring) it in a broker to find something.  Once you buy it, you are trusting your property manager is doing a good job.

If you have someone that knows the market and that'll be honest with you, that's a big jump.

Background, am a CRE broker who specializes in apartments.

Yes, you can do a deal without a broker.  However, caveats:

1) If you have signed a buyer broker (as noted) or listing agreement with a broker prior, realize it is enforceable and binding.

2) If you don't use a broker, I would strongly recommend an atty to handle paperwork and deeds.

3) If there is any money involved (there are bargain and sale deeds), use title.  They are a neutral party to handle funds and protect both sides.

4) If its a pretty clear-cut deal (i.e. buyer/seller collegial and numbers.condition/pricing not an issue), I'd be comfortable going broker-less.

So, barring an agreement, why use a broker?  Couple of reasons.

1) Market info - We are usually the most up-to-date on market info.  This gives a better answer, when you ask, is this a good deal or not?  This applies before and after you buy a property

2) How do I distill the important numbers to determine if this is a good ROI?

3) What are comps sales to justify whether I'm paying a "fair" price or not.  If you're borrowing, odds are you will get a MAI-certified appraiser and they are the standard on prop values.  However, most brokers can give a pretty close BOV.

4) We do this and understand what works/doesn't in terms of realistic things you can do to increase your NOI and return.

Hope this helps.

Make sure your CFBT is >$0.  Unfortunately, this isn't the time to invest in roll the dice properties with upside UNLESS you can steal them a price that allows you some bank.  In 2009, it saved a bunch of borrowers.

Stuff happens and the goal is always to NOT have to throw money at a property.