Counseling the Broker?
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How many times have we all been involved with someone representing a property we wanted to purchase (or lease) for our client and we thought that the broker on the other side would kill the deal from sheer ignorance?
Are you guilty of saying, “I just wish that he would get out of the way and show up at closing for his check so I can get this deal done?”
Do we consider the fact that the other broker must have some kind of relationship with the principal on the other side to get the listing? Many times there are facts far more important than professional skill that gets a broker the engagement to represent the owner of a property. If we really want to get some mileage out of the deal, maybe we should slow down a little and try to turn a bad situation to our advantage.
So what do we do in these instances? The easy way out is to move him out of the way. Sometimes it is the only way. But, if we can establish a rapport with the other broker, counsel him, sometimes it will pay off big time! The SEC is known to be more creative than the ordinary broker on the street.
What about the agent that is new to the business? Maybe it is a kid right out of school or someone that is tired of “working for a living”. Take him to lunch to discuss the transaction. Be certain that he knows about things like IRC 1031. Make certain that he knows his seller can place the note portion of a seller financed transaction with the QI also. Let him know that you have buyers for his client’s note and that your client might pay more for the property if the seller will provide carry back financing. Agree to meet with him and his client to discuss the 1031. Write it down for him so he can have something to study. Ask Jack Hunt how many deals have been made over cocktails on a napkin!
Does the owner of the property your client wishes to lease realize that if the landlord contributes the tenant improvement dollars on the deal, resulting in higher rent, his building has just increased in value on a cap rate basis?
What about the warehouse sitting high on the hill close to the major freeway? If you are having problems with the rental amount being too high, suggest that you can increase the income from the property by leasing a pad for the local cell phone company to put a tower on the extra parking in back. And, when you leave, the landlord gets to keep the lease to the phone company.
But, most importantly, you have to let the new kid on the block take some credit for the ideas. Allow him to learn by being next to you. Knowledge is like a smile. You can give it away and still have more than you can ever use. And, who knows, you just might find a young person that should be invited to a SEC meeting to boot!
