Opinion on Brokers?

Are they a necessary evil? Do they provide value? I had the opportunity to work for a few brokerages specializing in class C multifamily investment sales deals. What are your opinions on this specific kind of broker? 

Comments (5)

 
Most Helpful
Jan 13, 2021 - 3:45pm

Be nice/professional to everyone you meet in your career. Especially in real estate. It's a small community.

The broker that you overtly snubbed could be your key to bringing you a deal in the future; or could move from brokerage to the principal side and be the guy who awards you group the deal.

Don't let you perception of brokerage get in the way of the fact that at the end of the day, we're all trying to put meat on the table.

 
Jan 13, 2021 - 6:07pm

Brokers play a critical role in facilitating transactions (leases and sales) as well as in the debt/equity placement world, same I-bankers in the financing world. Some may gripe about the fees, but that is the nature of success only payments. The only real complaint is that not all are equally qualified, professional, or skilled at their jobs (low barriers to entry). The good ones earn their fees, period. 

As to the Class C multifamily world? Seems like they would be critical in sales, but not really world. I'd guess brokers in that space can charge decent commissions, like 3% percent plus. Get into the large institutional sales world and fees fall to 1% and less, like 25 bps for really big deals. So, earnings are not so easy to compare (like volume does not equal fees when not comparing equal sized assets). 

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