Finding/Working with brokers
I'm currently trying to purchase my first commercial property. I'm working with a couple local brokers, but the number of properties they bring my way are few and far between. I'd like to expand my search to areas outside of where these two brokers focus on, but I'm not sure how to do so.

If I'm willing to look at a large geographic location (multiple states), do I find a property first and then a local broker? I can look for properties myself using loopnet and listing agent websites, so that part isn't a problem. If I find a property and bring it to a local broker, does that imply a lower commission? If I find a property that's in the same state but not in the city that my local broker focuses on, would it be best to still use him, or to find a different broker? How would you go about finding a local broker, is it okay to ask my local broker if he knows anyone in the area?

I know these are a lot of questions, thank you in advance for any help.
[{"id": "darykxq", "text": "Hopefully I can shed some light for you.\n\nFirst, some advice.\n\nYou have to realize that as a first time buyer, you're a lot of work. We don't know if you're sincere, and so you're liable to waste our only resource (time). Doubly so since you likely have no real criteria yet for your potential investments.\nThere's a saying that \"Buyers agents go broke\" in commercial real estate. Their concerned that you're could just be kicking the tires. As a buyer, you don't have to buy anything (in our eyes). If you woke up one morning and said \"Meh, never mind I don't want the $25m building\" the broker helping you is SOL.\nThen comes doing the due diligence for looking at property and due diligence into you too. I've had friends come to me and say \"We want so much space.\" When I ask if they can afford it, the conversation quickly gets shut down. So you've got some cards stacked against you.\n\nThe solution? Money.\n\nIf you pay a retainer fee and agree to use it against future commissions, we're more inclined to take you seriously since this is your first rodeo. If you can prove your financial worthiness, whether it be your personal, business, or investor funds, we can begin to see you as qualified. If you understand why you want to buy commercial real estate and can articulate it well, we can help find properties that meet your criteria. We have a different database called CoStar that lists millions of properties all around the USA for sale and lease. It's just a matter of finding what you need.\n\nNow for your questions:\nIf I'm willing to look at a large geographic location (multiple states), do I find a property first and then a local broker? \nNope. This is your broker's job. We get paid to serve our clients.\n\nIf I find a property and bring it to a local broker, does that imply a lower commission?\nNope. Well, maybe. If you contact the seller's agent and don't mention you have a broker, some of them will raise hell and make it harder for us to get paid.\n\nIf I find a property that's in the same state but not in the city that my local broker focuses on, would it be best to still use him, or to find a different broker?\nDepends. People on my team can service clients in a couple of states because they have experience with the product type or the area.\n\nHow would you go about finding a local broker, is it okay to ask my local broker if he knows anyone in the area?\nOnly if it's not their speciality. If you're trying to buy a medical building and that is my specialty, it's disrespectful to ask for another medical person. If I work in office and you need a medical recommendation, it's only natural that I may have to refer it out.\n\n\nThis is a ton, but I hope it helps. Haven't really scratched the surface but this should give you insight into what's going through our heads. Would love to be considered for your projects if you're looking for things in Georgia. You can always just PM me for more info.", "replies": [{"id": "das5uga", "text": "Thanks, this really helps! From what you wrote it seems I should check in with my local broker to see if he or people on his team would be able to handle other properties outside of what I've currently been relying on him for. I'll give that a shot, and see what he says.\n\n\nUnfortunately not looking in Georgia, but I appreciate the offer.", "replies": [], "depth": 2}, {"id": "dashmi0", "text": "If I'm searching properties in the 1-10million dollar range then what would you say would be a reasonable retainer for them to take seriously?\n\nI.E. A percent of the property value? Wouldn't want to lowball it but obviously don't want to use more than necessary either.", "replies": [{"id": "dat77th", "text": "Just ask them what they feel would be appropriate and negotiate if you feel it is too high, this way no one feels like they're being used. A decent retainer in Missouri may not be the same in NY.\n\nKeep in mind this something I'm recommending only as a show of good faith if you do not have a track record of investing already.", "replies": [], "depth": 3}], "depth": 2}, {"id": "datzoq6", "text": "This is a great response.", "replies": [{"id": "dauzb5w", "text": "Thanks but it looks like Liveyo was able to provide a more technical response. If you're going through the motions, I strongly recommend taking a look.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "dau5xw4", "text": "I am investor that owns a good number of industrial properties in one geographical market.  I am also a licensed agent.  We lease our own buildings but third party brokers \"bring\" us most of our new acquisitions.  \n\nYou don't really provide enough information to help you enough so I am not sure if this advise is perfect for your situation.\n\nA couple general comments:\n\n#1. The Commercial Brokerage Community is pretty small.  I am in one of the largest metro markets and most brokers know each other and who is a player. \n\n#2. Brokers can be very cynical because of the business they are in. A six figure commission can go in smoke for 100 reasons.  You need to give them comfort you aren't wasting their time.  \n\nHere's what I would do:\n\nStep 1 - \nDevelop as defined as a criteria as possible.  EG: Looking for NNN retail buildings at a 5.5 cap rate or better between 1 and 3 million.\n\nStep 2 - \nSearch for properties that meet your criteria most closely on Loopnet.  Keep a tally of the listing broker on each listing.  You will probably notice that there is a handful that specilize in what you're looking for in the market. \n\nStep 3 -\nCall 2-3 of them.  If they are too big for a first timer have them assign you someone from there team.  \n\nStep 4 -\nI would repeat this step in each separate geographical region.  I would not ask local brokers for referrals in other regions.  Just call brokers who actually have listings in the region you are looking for.   \n\nNow if you explain your criteria to a couple brokers and they tell you that what you are looking for is a unicorn, take a look at yourself in the mirror and you should maybe spend your time doing something else.  \n\nI personally would not pay a retainer.  You can have your proof of funds or a letter from your banker handy and maybe a list of your holdings.  \n\nIf you are really brand new and in the research phase maybe you should request that some brokers do some consulting for you.  Pay them a high fee (like $100-250/hr).  I actually paid an appraiser $250/hr (his expert witness fee) to give me feedback on my re-positioning for my first couple acquisitions.  His advise made me over 100,000 easily.  Probably many times that actually.  ", "replies": [{"id": "daw3h90", "text": "Thanks for the advice! In regards to steps 2 and 3, should I be worried about a conflict of interest issue since I may be interested, either now or in the future, in one of the properties the broker is listing?", "replies": [{"id": "daw417p", "text": "Yes, there will be a conflict of interest.  The agent will be very motivated to earn a double commission if it is their listing.  The numbers they give you will be overly optimistic.  You will benefit that there will be no middle man in the deal and you can probably get to the Sellers bottom line faster.  \n\nIf you really know your criteria I would hire some third parties (appraiser, inspector, etc to do the due diligence) to help with it.\n\nObviously, it's hard to say without more details on what you're looking for and how experienced you are in real estate.  ", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}]