This article will give you some helpful tips on potential guidelines in choosing which broker to work with. The first paragraph will focus upon some general guidelines that many successful commercial investors have found followed by explaining some of the differences between the listing broker and selling broker.
If you are in the beginning stages of your commercial investing career, you may want to look at using a young and aggressive agent to begin with. A younger agent may be more responsive in working with you and will also help foster a closer relationship than veterans who have been in the business for many years. Veterans who have been in the business for a great deal of time will often have established relationships with many clients and may not have the time or desire to develop new clientele.
This can happen because the older commercial broker has a well-developed network of contacts that bring him more business than he or she may be able to handle at one time. A younger commercial broker will often be working to establish his or her business and you can use this to your advantage to develop a close working relationship. This will allow you to develop a relationship which you can build on in the future. You can work to build your business as he develops his business. This is a good bond you two can have in common.
As with any industry, there are many different types of companies in the marketplace. You will find benefits to working with many different types of companies. Many commercial properties are listed through large commercial brokerages. Many successful investors have done this to great advantage. When looking to acquire properties, many successful investors may look to work with lesser known brokers. These brokers may hold information or listings which are not on the market or are being under-marketed currently. You may work with many brokers but be sure that you have a close relationship with at least one. A broker will be one of, if not the most important, business partners you can have. If you do not have a good broker, you are cheating yourself out of valuable industry contacts, information, and experience. You cannot focus upon using one broker for all of your activities because you are cheating yourself out of many different sources of deals.
Check out the broker and ask for references. This can allow you to check into the broker’s background and what others are saying about this particular individual. Ask around the market what others think about this particular broker as well. You need to do your homework before choosing a broker because this is a partner you will use often and a relationship to build slowly but surely.
Hopefully this article on choosing a broker has given you good insight. There is not necessarily a set formula to finding a good broker but these are tips which may be able to help you. When looking for a broker, take time to develop a relationship from the beginning and you will be rewarded throughout with the benefits of a good business relationship.
David Lindahl, also known as the "Apartment King" has been successfully investing in single-family homes and apartments for the 15 last years. He has rehabbed over 820 houses and currently owns over 7,232 apartment units. He is the author of three best selling books. Dave Lindahl is a regular guest speaker at CT REIA. Go here for the current list of upcoming real estate investing seminars in Connecticut.