NNN PROPERTY BROKERS
First and foremost, get hooked up with some very good NNN Property brokers that specializes in net lease properties. In almost every market of the country, there is usually someone that does this. It is beneficial to get with a good broker because they have spend a lot of time, money, effort and energy developing relationships with triple net property owners, developers and other brokers in order to have access to good sources of available property.
This is a huge shortcut for you because now you can focus on other things. They have already laid down the ground work. So you want to do some research to find out what NNN Property brokers are specializing in for your specific market place and discuss with them your goals and objectives. Some people ask me, well, how hard is it to go on the internet and find these properties? The process is more daunting then you think. Like with any type of investment real estate, for the most part, it is a numbers game.
Having the experience to sort through opportunities that meet your needs and protects your interest is crucial. Developing and engaging your investment team of your net lease broker, attorney, accountant and mortgage professional is also extremely important and beneficial to your bottom line. There are a lot of different property types you can invest from retail, to office, to industrial and so on and a broker who is knowledgeable about the market place and trends should be able to guide you to the best one.
There are both seller brokers and buyer brokers. Seller brokers represent the owners of net lease properties and only has the best interest for the owner. On the other hand, the Buyer’s broker’s responsibilities to the buyer are: undivided loyalty, obedience, diligence, disclosure, confidentiality, accounting, and reasonable skill and care. All duties are fiduciary and exclusively to the buyer, not to the seller. So when you decide to work with a broker you want to make sure the broker discloses what role he or she represents.
THE BUYER’S BROKER ROLE:
During the search process, the Buyer’s broker:
• Arranges property showings or deliver property offerings
that meet the buyer’s needs
• Provides information that the buyer requests about the
property, community, taxes, phase 1, lease abstracts, tenant information
and zoning, or refers the buyer to appropriate information
sources
• Discloses any material facts about the property of which
the agent has knowledge.
During the offering process, the Buyer’s agent:
• Prepares a competitive market analysis of the property for
the buyer
• Counsels the buyer on what price to offer to the seller.
• Shows what other buyers are paying for property in the area.
• Assists in writing an offer with the buyer’s interest in mind.
• Negotiates the best price and terms for the buyer.
• Keeps the price capabilities and objectives of the buyer confidential, and maintains anonymity if desired.
During the closing process, the Buyer’s agent:
• Assists with the loan application process
•Assist buyer and monitor paper work of 1031 exchange
• Assist with paper work or monitor of self directed IRA
• Monitors all dates, events and requirements for the buyer
Typically a buyers broker will want an exclusive representation agreement that commits the buyer to work only with that broker for a stated period of time. In a lot of scenarios, buyer’s brokers earn their commissions from a co-broke or shared fee from the listing broker and in other scenarios that fee is charged to the buyer. Every real estate agent’s commission is negotiable. There is no set percentage or commission to which an agent is entitled. Below is a serious of litmus test questions to help you out during your search for a broker:
Was the broker knowledgeable about the market value for the property?
(Yes) (No)
How helpful was the broker in assisting with deal analysis?
___________________________________________
How well did the broker negotiate the purchase price for you?
___________________________________________
How did you hear about this broker and how did you go about
hiring them?
___________________________________________
___________________________________________
___________________________________________
What stood out about the broker and what in particular did
that broker do a good job at?
___________________________________________
___________________________________________
___________________________________________
Areas of improvement
___________________________________________
___________________________________________
___________________________________________
Would you hire this broker again?
(Yes) (No)
If Yes, Why?
___________________________________________
___________________________________________
___________________________________________
If No, Why?
___________________________________________
___________________________________________
___________________________________________
Dwaine Clarke is a published author and founder of Clarke & Tinker Net Leased Property Group, a commercial real estate sales and advisory firm located in Connecticut. Connect with Dwaine on Twitter and Linkedin
