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Agent2Agent in San Rafael : Real Estate Advice

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Activity 1
Fri Jan 25, 2008
David Dorfman answered:
IF you're greedy, keep it and never see the client again.Not even worth the breath to argue over it.

This is REAL problem with "regular" agents.

A commission should be earned when it's PAID by the tenant. This is more so in commercial real estate.
Most agents/brokers will ask and get paid a comm when the deal is signed - for the LENGTH of a contract.

So assume a 50,000 year lease for 5 years - $250,000 total rent.

At 5% (most comm want more) that's $2500 per year or $12500 for the term over 5 years - what if ten years? $25,000 per year.

Well, what if the tenant leaves after 6 months and the landlord paid you a $25,000 commission.

Guess how my broker who has been around for 40 YEARS handles this - WE TAKE commisison on the anniversary of the lease. IF THE LANDLORD MAKES MONEY< WE MAKE MONEY - YEAR AFTER YEAR.

It's an annuity.

I get MORE listings working this way, have a great tax planning, and know I have incomefor the next 12-18 years - assuming my tenant who I swore to is a GOOD tenant today and tomorrow.

It builds TRUST.
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