Listing Broker

M-F Manager Referral:  Rose City Commercial Real Estate recently made a referral to a multifamily property manager for an owner with 4 properties totaling over 100 units.  The company we chose to recommend was selected because they do a really good job for their owners and having known them for years…we respect them both personally and professionally.  The clean way to handle that if the management company successfully takes over is to tell the property owner that a fee was given to the broker making the referral. That’s good, but not best. The squeaky clean way way to handle it is to tell the property owner that if offered, no fee will be accepted. Turning down a potential $5-10,000 referral fee is the right thing to do. That ensures that all vendor

“If it closes and goes well…send us a Starbucks card…or nothing.”

referrals are made with the property owner’s best interest only.  A similar situation occurred a while back with a MOB (Medical Office Building) we helped a client buy.  The out-of-state buyer had us interview and recommend management companies.  When the deal closed we the selected management company offered Rose City Commercial Real Estate a $5,000 referral fee.  We directed the manager to reduce our client’s first year bill by the same amount. Squeaky clean.

Lender Referral Fees: A loan broker called us last year to discuss current potential projects Rose City Commercial Real Estate was working on.  He explained to us that on one deal there would be at least a $15,000 fee paid to RCCRE if we recommended his lenders. He went on to say that if I wanted more…he could build up to $30,000 into the pricing structure and my client would not be upset, because they wouldn’t know.  We told him that if his overall package was better than competitive lenders he would get our recommendation.  And in pricing that out…he should not factor in any fees to our company.  “If it closes and goes well…send us a Starbucks card…or nothing.”

Parallel Interest Practices: Where the broker and the client have identical interests

Much of Rose City Commercial Real Estate’s business revolves around investments in commercial real estate.  A typical investor comes to us with

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We intentionally created Rose City Commercial Real Estate to be different. When choosing the right broker to list your commercial property the strategy and tactics used to get you to closing earlier matter. Many brokers get a listing, produce some deliverables, and put an ad online…and then get back to searching for more listings.

They are all about the listings.

Our difference, our guarantee is that our team will speak personally with hundreds of buyers of properties like yours…(the people most likely to buy your property) to explain the opportunity your asset offers.

Quality deliverables and a campaign featuring direct contact with buyers means you will achieve your goals quicker…with less stress. That’s guaranteed.

 
Call 503-577-1034,email us at Sales@rosecitycre.com, or setup an appointment to choose Rose City Commercial Real Estate.

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I am a huge proponent of specialization. I focus on Portland multifamily assets ranging from 8 to 80 units.  Have I worked on leasing, single family homes, larger commercial properties or deals in other states?  Sure!  Probably will again, too!  But I feel that Robert Redford got it right when he said to Paul Newman:  “Keep thinkin’ Butch…and go with what you’re good at!”  Similarly, I feel we owe a debt of gratitude to our doctors because they are models of specialization.  There’s so much to know that docs must specialize in order to competently provide critical services.

I was reminded of this recently when an investor told me that one of his partners was insisting that his nephew get the listing on a Portland multifamily complex.  I’m not a great loser, but I know in life if you don’t strike out occaisionaly you’re not getting enough trips to the batter’s box.  What I find amazing is that the nephew has no business experience, no real estate experience, no relevant sphere of influence…but he did get his license last month and some business new cards.

Be aware that in Portland there are many commercial brokers that haven’t sold an asset yet this year.  To move product requires knowing Cap Rate trends…but I jokingly suggest this respective agent thinks a Cap Rate is the maximum value an adjustable mortgage can reset to.  He does not have an awareness of full recourse clauses, understand terms such as: “jointly and severally” has no idea of the minimum hold time for capital gains versus ordinary gains, or that a reverse exchange is not a football play.  In short, this new agent is exposing his relatives and unaware principal broker to huge risks and not delivering all of the available upside.  Vegas odds are he is a matter of months from being mentioned in the paper.  Once again…the case is made for specialization!

When you’re ready to work with an investment specialist…contact Rick Bean at 503.577.1034 or: rick@rosecitycre.com.

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