Real Estate Brokers: Can You Do Without Them as a Real Estate Investor?
Real estate brokers and land brokers are two of the most important consultants any real estate investor needs to have. They have a vast knowledge of real estate investment and you need them to proceed successfully with your real estate investment.
There are two primary functions a brokerage firm can perform for you. One is to act as the real estate investment (raw land) broker when you buy or sell (or exchange) a property, the other is to act as the leasing agent while you manage the property. The understanding here is to look for firm that offers both types of services. It is always better to work with one broker or brokerage firm familiar with your operation, tan it is to try and bring two entities up to speed on your plans, your programs and your property. A shared history (if it is a good one) can smooth out a lot of bumps along your road to becoming a rental property investor.
Real estate brokers usually charge a percentage of the sales price, whereas leasing agents take a commission calculated on the particulars of each rental contract. Having a long term relationship with an estate broker is advantageou
s. Not only does familiarity with you as an investor, your needs and price range help them to target the right properties and tenants, but your history as a customer can help you get some breaks on their fees or get them to add some services to their basic package.
When purchasing property, even if the other side has already retained a broker, find your own and make sure he or she is representing only your interests. Many estate brokers are perfectly capable of representing either buyer or seller, but you don't want one that is trying to balance your best interests against those of your opponent.
You don't want balance. You want the deal to come out in your favour.
Most leasing brokers will want an excusive deal with you, in which you promise to not to have any other brokers represent your interests. This is fine, but be sure you get some exclusivity in return. Put in your contract that the broker not represents any client who competes directly with you. Also in the contract, you will want the real estate broker's specific plan of action and associated costs and timelines spelled out. This way, if the proposed plan is not executed you have a way out of your exclusivity agreement.
There are two primary functions a brokerage firm can perform for you. One is to act as the real estate investment (raw land) broker when you buy or sell (or exchange) a property, the other is to act as the leasing agent while you manage the property. The understanding here is to look for firm that offers both types of services. It is always better to work with one broker or brokerage firm familiar with your operation, tan it is to try and bring two entities up to speed on your plans, your programs and your property. A shared history (if it is a good one) can smooth out a lot of bumps along your road to becoming a rental property investor.
Real estate brokers usually charge a percentage of the sales price, whereas leasing agents take a commission calculated on the particulars of each rental contract. Having a long term relationship with an estate broker is advantageou
When purchasing property, even if the other side has already retained a broker, find your own and make sure he or she is representing only your interests. Many estate brokers are perfectly capable of representing either buyer or seller, but you don't want one that is trying to balance your best interests against those of your opponent.
You don't want balance. You want the deal to come out in your favour.
Most leasing brokers will want an excusive deal with you, in which you promise to not to have any other brokers represent your interests. This is fine, but be sure you get some exclusivity in return. Put in your contract that the broker not represents any client who competes directly with you. Also in the contract, you will want the real estate broker's specific plan of action and associated costs and timelines spelled out. This way, if the proposed plan is not executed you have a way out of your exclusivity agreement.
Tags & Keywords : Broker, real estate broker, tenants, real estate, investment