I wanted to get CRE perspective on working with Resi Agents
Basically title. A conversation sparked my interest into this subs perspective on having to work with resi agents.
[{"id": "i0eotr5", "text": "Can you be more specific? Using them to source small deals? Doing condo buybacks?\n\nOverall, we don\u2019t use them often. I just bought a $22m deal that was represented by all resi agents but that is exceptionally rare.", "replies": [{"id": "i0erekh", "text": "I\u2019m generally wondering about cre brokers experiences working with co-op resi agents", "replies": [{"id": "i0ernhq", "text": "Not saying it doesn\u2019t ever happen\u2026 but most multifamily sales are done with one Seller\u2019s broker. Buyers are sophisticated enough to not need a buyer\u2019s broker.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "i0ep68b", "text": "Not to speak for anyone else; but the difference between commercial and residential is as large as the gap between Math and Art. \n\nThe concepts don\u2019t overlap, the skills necessary to succeed only barely overlap (cold calling, soft skills).\n\nCRE is much more financial consultancy (or analysis) vs anything a residential agent does. Maybe a mortgage broker or underwriter would have more in common with CRE work.\n\nThis is all generalizing, but imo the skills needed to succeed in each field is just completely different.", "replies": [], "depth": 1}, {"id": "i0errz2", "text": "Resi agents working commercial deals with limited or no experience put their clients at risk. In CA, we use a different contract and the DD periods work differently along with how contingency periods lapse. We kept deposits from 2 different buyers on a deal a couple years back because the resi agent didn't know what they were doing and didn't protect their clients properly.", "replies": [], "depth": 1}, {"id": "i0eu1r6", "text": "Makes everything more difficult.", "replies": [], "depth": 1}, {"id": "i0ex4ow", "text": "Simple. They don\u2019t understand fiduciary. Refer to a commercial broker in your network and collect a referral fee.", "replies": [], "depth": 1}, {"id": "i0f7nob", "text": "They\u2019re really hard to work with and tend to over complicate the easy stuff and mess up the hard stuff. I\u2019ve seen many a deal get blown up by a rezzy agent trying to do commercial", "replies": [], "depth": 1}, {"id": "i0gexjf", "text": "Offer a resi agent 100% commission up front on a lease and you\u2019ve just boosted your asking rate by 1-2 psf with only half the concessions. It\u2019s ridiculous how little some of them care about their clients.", "replies": [{"id": "i0hn0ex", "text": "Yep. Absolutely crazy. I commented this earlier but both sides, at the end of the day, are gunning for a commission. But one side in particular prioritizes it above all else, without a shred of professionalism or integrity, which is just embarrassing.", "replies": [], "depth": 2}], "depth": 1}, {"id": "i0idp00", "text": "They 9/10 times are in way over their head trying out a commercial deal, and are the reason commercial agents get called \u201crealtors\u201d too. There should be a separate license for commercial and residential. Biggest pet peeve, \u201cwhat\u2019s the commission split?\u201d Without even a second of analysis of the deal or talking to the client to even see if they\u2019re interested. I guess some commercial brokers do that too but yea\u2026", "replies": [], "depth": 1}, {"id": "i0q9x6e", "text": "As someone who\u2019s been both:\n\nCRE is doing business.\n\nRes is like a high-school play about doing business.", "replies": [], "depth": 1}, {"id": "i0zc57i", "text": "A post from resi to resi group today. \n\nLooking to purchase 20-40K SF industrial w 30\u2019 ceilings. \n\nPick any market in US and it\u2019s maddening because of the demand for this asset and limited to zero supply.", "replies": [], "depth": 1}]