Net Lease Commission Struggles Are Real Out There.
Noticing in the STNL space, more and more listing without a procuring broker fee offered. Especially McD and CFA listings. Anyone else seeing this?
[{"id": "hxuo30d", "text": "I just did a Mcdonalds deal. Buyers side. 1%.\n\n&amp;#x200B;\n\n1031, I sold his other property so I got a full hit on that side.", "replies": [], "depth": 1}, {"id": "hxus17v", "text": "I'm new so forgive me. What's the point? If there's no commission what's the incentive?", "replies": [{"id": "hxux2fz", "text": "There isnt one. The list side will find a buyer without you.  If your client will wont pay you then they arent going to.", "replies": [{"id": "hxuxc7s", "text": "This implies getting paid by your client. Is that come for these deals.?", "replies": [{"id": "hxv2f5b", "text": "More likely your client has to pay anyways so they stand behind you and its negotiated in if you are an honest broker who contributes to the transaction.  If you are just forwarding an email to someone you met for 30 seconds on your mailing list and you have no idea how to do your sides work then yep you prob get 0.\n\nThis isn't new.  Brokers have navigated this from off market to other investment deals where a cobroke was never offered, when debt etc gets involved etc.  \n\nAs a fundamental thing people want you to do something of value to get paid.  If all you did was forward an email of a listing to your 'client' who your relationship consists of they sent you a inquiry on a listing you had and never responded then ya know what are you doing to get paid here?  \n\nIf your own client doesn't care if you get paid or not why should the seller or broker care either?\n\nDo something of value IMO and its a non issue.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}, {"id": "hxuxrzj", "text": "Producing for people with wealth. Generally those individuals buying coupon clipper STNL deals are one of a multitude of assets in their RE portfolio. So, you do it to maintain or build the relationship for future deal flow. \n\nFees have always been low on STNL deals. They are too easy to sell. I remember like 10yrs ago the buy side was only getting like 1.5%.", "replies": [{"id": "hxuz5y0", "text": "Makes sense, sort of an investment in cultivating or maintaining a relationship.", "replies": [{"id": "hxuzn6f", "text": "Yup. Most brokers will do low fee or freebie work periodically. It\u2019s a relationship business.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "hygar5k", "text": "It's hard if you have no rep in the NNN space. I am in this space, so even when I am on the buyside, I typically know the seller (if a big developer) or the broker who works for them. Fee's are better when you have a reputation in the industry and the seller believes that paying you a better fee (even on buyside) can equate to a more probable and better buyer. Remember that many 1031 buyers tie up 10 deals just to close one....", "replies": [{"id": "hz0go54", "text": "My firm definitely has rep in the NNN space, but my relationships need strengthening for sure. Unfortunately  though, we aren't a team, so I have to go at it alone and learn from all the painful mistakes.", "replies": [], "depth": 2}], "depth": 1}, {"id": "ib82s7w", "text": "If you want the most competitive offer it\u2019s essential to offer a co-brokerage fee. Involves the largest and most aggressive bidding pool. The best buyer reps don\u2019t work for free. \n\nJust comes down to the agreements they negotiate with the seller.", "replies": [], "depth": 1}]