Suddenly given responsibility of family commercial property, don't know anything about real estate. Need help getting pointed in the right direction.
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[{"id": "dryoodu", "text": "Find a local commercial leasing broker to help you out. Given your familiarity with CRE and its complexities, this would be the best way to make sure you don't get screwed.", "replies": [{"id": "drypgui", "text": "Thank you, this is the most logical route to take. Will there be any initial fees to speak to a broker or is it a pay when a deal is made kind of thing? Sorry for all the stupid questions, I have absolutely 0 knowledge of anything in this field. Me being a middle man for my father also makes communication a bit slow. ", "replies": [{"id": "dryqfe6", "text": "Ask them what they see it renting for then put a for lease sign up and try to lease it right around or just under that price.", "replies": [{"id": "dryr063", "text": "That was my original plan, to have someone inspect the property and give me an estimate and to also do my own research with local businesses then decide on my own price. As DigNaDitch said though since I am very unfamiliar with this field, I'm very wary of getting screwed. Ideally, if I could do it myself, I would. I just don't know all of the risks involved. Hence why I'm looking for advice.\n", "replies": [{"id": "dryrdl5", "text": "If you're most interested in performing well for your dad and getting a good tenant for his building, hire a broker.  If you want to earn that fee, this is a small deal that many owners will self-manage.  It's a learnable trade.\n\nIf you hire a broker, interview a few.  Experience is important but so is communication and your rapport with them.  7% is probably what they will want, maybe 6%.  If you go with a younger guy he may even do it for less.  Look for people listing properties similar to yours and start there.", "replies": [{"id": "dryrqyi", "text": "Great info, thank you very much. I come from a small town (+-10,000) people and its mostly retirees so options for brokers are a handful. What are some red flags I should look out for when dealing with a broker?", "replies": [{"id": "dryxg3u", "text": "Look on www.loopnet.com and see who's on there marketing similar properties.  In a small town like that you may just need to go to the largest brokerage in town, probably a Remax or something, and talk with them.", "replies": [{"id": "drz20ty", "text": "Great info. Thank you very much. ", "replies": [], "depth": 8}], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}, {"id": "drz16j1", "text": "It's a felony for you to get compensated for filling space. \n\nIf you get a broker involved he will take 6% but then you can learn more about the property that someday you'll come to own. ", "replies": [{"id": "drz2044", "text": "Good to know. Thank you", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "drz2mds", "text": "What part of Florida is this in?", "replies": [{"id": "drz3bxo", "text": "Centra Florida. Highlands county. ", "replies": [{"id": "drz77u9", "text": "You may want to call me and l can walk you through the steps. There is a lot more to it than meets the eye. I have no vested interest as l cannot do business in Florida. Ken 416 553 6376.", "replies": [{"id": "ds2wvub", "text": "&gt; Highlands county\n\nI work in central Florida and can give you another perspective.  Avon Park is probably a little too south for me to work; however, I can help you find the right course of action.  If you want to contact me, my website is: www.benjaminlafreniere.com", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "drz3hqu", "text": "I don't know about Florida, but in Texas it would be illegal for you to lease it for a fee for your dad unless you owned part of the building (though not a felony like stated above). Also, if you try to lease it yourself there's a 100% chance you'll leave money on the table. A broker will earn his/her fee in this situation for sure. Even if you knew what to do and what price to market and how to negotiate you don't have the marketing resources a broker will have. Here I usually see a 6% gross fee with 4% going to the broker representing the tenant. If I were in your shoes I'd interview two or three brokers if you can and don't mess with anyone who does commercial and residential. Offer them 7% with the caveat that you get to watch over their shoulder so you can learn the process. That would be annoying to them most likely but they'll likely ablige for the extra 1%. ", "replies": [{"id": "drz458i", "text": "I figured as much it would be too good to be true to just get 7% out of nowhere like that straight into my pocket. Couple people have recommended interviewing brokers, what exactly should I be trying to establish in these interviews? Is it mainly a good repertoire, or am I looking for specific answers to questions? Thank you so much. ", "replies": [{"id": "drz5c5o", "text": "Make sure there is rapport and that you like the person and they seem honest and genuine. Make sure they are and have worked on similar projects. If you can find someone who does a lot of medical office deals since that would be best for the tenant mix as long as the property has sufficient parking. Medical usually requires more parking than retail or regular office. ", "replies": [{"id": "drz6ruo", "text": "Definitely will look into that, and yes when we built the building we made sure to have sufficient parking. It was on of our biggest hurdles actually. ", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}]