Landlord to RE broker? Anyone done it or have opinions?
I’m currently in a partnership with approx $50 mill in commercial real estate assets, some self managed and others investor only. I’ve been struggling with lease ups and getting brokers to work on our projects, as well as getting access to deals. I’ve applied for my commercial real estate license, even if it’s for education only so I can understand the industry better. But I’m considering letting my partner manage our real estate and moving into being a broker myself. Can ya’ll weigh in on this? Good idea? Bad idea? Weird idea? The extra money from commissions and access to off market deals would be very beneficial, as well as the ability to do my own deals. I’m worried I may end up screwing myself over though with industry.
[{"id": "hs84e7h", "text": "Do both, I would think that under guidance from an experienced commercial broker you will be able to elevate yourself to manage your current assets more effectively as well as perhaps feed you leads from managing what you currently have.", "replies": [], "depth": 1}, {"id": "hs8zzbt", "text": "Unless you're able to commit to being a broker full time (its exceptionally time-consuming), you won't be able to provide yourself with the excellent service you're looking for. A good broker has a huge number of listings, and if they get a hit on a listing that's not yours, they may end up showing one of your spaces as well. Their other listings are basically free advertising for you. It takes years for a broker to build up contacts etc. I own two retail centers, and switching from a good broker to a world-class broker completely transformed our centers. We have an exceptional tenant mix now. \n\nGiven your position, your time would be better spent going to law school. With a knowledge of law you'll have all the education a broker has, plus the knowledge to protect the interests of your portfolio from every other angle. While expensive and a three year upfront commitment, legal training specializing in real estate law and negotiation, will likely do more to assist your goals than a broker's license. \n\nThat said, it's unlikely you'll burn bridges with the industry by becoming a broker yourself. Once you get your real estate salesperson license, most the the training will be how to get listings not how to be excellent at your job. It's very disillusioning actually.", "replies": [{"id": "hs98w9a", "text": "Thanks for this reply, I had actually considered law school as an option. \n\nI appreciate that the time required to be a broker is likely more than I could commit.", "replies": [{"id": "hs9curq", "text": "No problem! Also, if you become an attorney you can get your broker's license very easily in most states. That's what my partner is doing so he can sell an occasional property for us.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "hs9ocb1", "text": "There are laws that a broker has to follow, if you ask me better not to connect the two.", "replies": [], "depth": 1}, {"id": "hsb6q7t", "text": "I'm half of your asset level but made the decision not to pursue a broker's license after considering it for awhile. (1) I can't do everything, and this is an easy one to shop out. (2) Brokers want my business and those connections help keep me up to speed with the market, sanity check things etc. (3) Having a rep of making deals happen quick, having cash on hand etc is a better route to off market deals than having a broker's license, IMO.\n\nThat said, I primarily hold larger industrial units and the leasing volume isn't there. If I was Mr. Strip Mall with oh 100+ retail units in the same region, it could make a lot more sense to get a broker's license and then you or an agent on staff could handle all leasing in house.", "replies": [], "depth": 1}]