Flat Fee Commercial RE Consultants. Do they exist?
Working on the biggest CRE deal of my career and was wondering if there are companies that exist that will help negotiate with sellers, find financing and assist with due diligence for a flat fee? Looking for someone who can help analyze the deal and watch for blind spots. Do such companies exist?
[{"id": "faaulzy", "text": "what is the main thing you need help with that you aren't confident you can handle yourself?", "replies": [{"id": "faba3g8", "text": "I need helping crafting a master lease agreement as well and help conducting due diligence on the property. I'm sure there has to be a checklist of items for 50+ unit mulitfamily buildings for due diligence purposes but I'd love to have someone who has done it before guide me.", "replies": [{"id": "fabu5hi", "text": "I dont know the names of them, but there are definitely firms that specialize in due diligence. Id try a google search.", "replies": [{"id": "fac0su6", "text": "I've already done this before I posted here. I keep finding \"advisory\" firms but seems like they just offer buyer representation and not assistance with crafting terms of master lease or assistance with finding financing.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "faawrg4", "text": "Those services are all handled by different parties. The large services companies can handle all of it through different departments. Flat fee - not likely. Everyone will charge % of transaction except lawyers who will bill by the hour. Frankly, I\u2019d be suspicious if someone offered to do it on the cheap - you get what you pay for.", "replies": [{"id": "fab9wok", "text": "I spoke with one company and they wanted $540K which seemed very pricey to me.", "replies": [{"id": "fabrswe", "text": "What is that as a %", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fab1425", "text": "Yes, they exist but they usually charge a percentage of the overall transaction. Where are you located and roughly how big is your deal?", "replies": [{"id": "faba7v5", "text": "What type of percentage do they charge? I'm in the DC, MD, VA area and this is an 8 figure deal.", "replies": [{"id": "fabfjxi", "text": "In the southeast, depending on the exact scope of services provided, anywhere from 3-8%. The fees obviously escalate as you get closer to true turnkey development + project management, and percentages tend to decrease as deal size increases, but there are a ton of different ways to structure it.\n\nEdit: Didn't catch that it's an 8-figure deal.. 8% is probably too much unless they are doing brokerage work in addition to.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fabghin", "text": "PM\u2019d", "replies": [], "depth": 1}, {"id": "fabgxxj", "text": "Most brokers ask for $1/SF or a fee in the amount of 2-4% of the net value of the lease.  I would find a broker with a good reputation in your area and ask what they charge.  You get what you pay for.", "replies": [], "depth": 1}, {"id": "fcjv29l", "text": "How are you doing an 8 figure deal and don\u2019t know the answers to these questions haha", "replies": [], "depth": 1}]