Residential Agent with some general questions.
Hi All,

I am a moderately successful residential real estate agent in NY (specifically Long Island) who has connected and built rapport with parts of my SOI that purchase hospitality businesses, and Apartment buildings. I currently work a decent amount of residential buy and hold deals and can calculate cap rate and NOI pretty easily. 

I do not have any experience in the commercial sector, and am trying to help two clients in the purchase of a Restaurant/motel and a 25 unit apartment building.

Since I’m coming in as a neophyte I’m curious on what is standard  information to request from the listing agent in these cases. 

Can I ask for prior year PNL’s, expense reports, overall financials? And if so is the agent expected to give to me before qualifying my buyer, or seeing the units in person? I’m not sure if there is a different language between the residential and commercial side. I usually just refer commercial deals out but this could end up being too lucrative to not try and figure out.

All help/constructive criticism is appreciated.


[{"id": "ef1e2cw", "text": "You should introduce them to a commercial broker who can better represent them, and try to negotiate a split with the other broker.  No offense, but you\u2019re really out in front of your skis and shouldn\u2019t be learning with your clients money.  People are paying you to do a job you don\u2019t know how to do.", "replies": [{"id": "ef1gu5k", "text": "I would normally agree with you, and I\u2019m usually of that mind set with most deals I\u2019m not familiar with. I\u2019ve referred a few deals out before but I\u2019m willing to learn in this case, and these clients are well aware of my neophyte status in commercial field and have no problem doing more of the leg work (one owns multiple hotel/motels and the other has a handful of manhattan apartments). I just want to make sure I\u2019m able to give them all relevant information. Thanks for the reply though.\n", "replies": [{"id": "ef1h04l", "text": "Also is it just me or are commercial referral splits awful? 1m referral and the kick out is 10-15%... Is that standard?", "replies": [{"id": "ef1jydi", "text": "I wouldn\u2019t know.  I\u2019m on the buy side and have never worked on the sell side.  I\u2019ll try to remember to post what we include in seller deliverables when I get to the office on Monday.\n\nRemindMe! 2 days", "replies": [{"id": "ef1jyw8", "text": "I will be messaging you on [**2019-01-28 21:06:14 UTC**](http://www.wolframalpha.com/input/?i=2019-01-28 21:06:14 UTC To Local Time) to remind you of [**this link.**](https://www.reddit.com/r/CommercialRealEstate/comments/ak441l/residential_agent_with_some_general_questions/)\n\n[**CLICK THIS LINK**](http://np.reddit.com/message/compose/?to=RemindMeBot&amp;subject=Reminder&amp;message=[https://www.reddit.com/r/CommercialRealEstate/comments/ak441l/residential_agent_with_some_general_questions/]%0A%0ARemindMe!  2 days) to send a PM to also be reminded and to reduce spam.\n\n^(Parent commenter can ) [^(delete this message to hide from others.)](http://np.reddit.com/message/compose/?to=RemindMeBot&amp;subject=Delete Comment&amp;message=Delete! ef1jyw8)\n\n_____\n\n|[^(FAQs)](http://np.reddit.com/r/RemindMeBot/comments/24duzp/remindmebot_info/)|[^(Custom)](http://np.reddit.com/message/compose/?to=RemindMeBot&amp;subject=Reminder&amp;message=[LINK INSIDE SQUARE BRACKETS else default to FAQs]%0A%0ANOTE: Don't forget to add the time options after the command.%0A%0ARemindMe!)|[^(Your Reminders)](http://np.reddit.com/message/compose/?to=RemindMeBot&amp;subject=List Of Reminders&amp;message=MyReminders!)|[^(Feedback)](http://np.reddit.com/message/compose/?to=RemindMeBotWrangler&amp;subject=Feedback)|[^(Code)](https://github.com/SIlver--/remindmebot-reddit)|[^(Browser Extensions)](https://np.reddit.com/r/RemindMeBot/comments/4kldad/remindmebot_extensions/)\n|-|-|-|-|-|-|", "replies": [], "depth": 5}], "depth": 4}, {"id": "ef3hvto", "text": "20 to 25% is what ive mostly seen", "replies": [], "depth": 4}, {"id": "efa3qdp", "text": "As promised, here is what we use for seller DD items requests.  Keep in mind that this is not for either restaurants, motels, or apartments.\n\nhttps://i.imgur.com/rwy522x.jpg", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ef1e54l", "text": "P&amp;L, balance sheet, trailing twelve months (TTM),  since it is a motel ask for occupancy rate for the past year and historically (compare that with any comps in the area and industry). For the restaurant ask if they have a NNN lease or owner pays expenses. If the latter you\u2019ll want to get all the expenses which should be in the financial requests. \n\nFor any help with financing, please reach out... I work in commercial real estate finance. ", "replies": [{"id": "ef1g6qo", "text": "This was the exact post I was looking for.\n\nThank you.", "replies": [], "depth": 2}], "depth": 1}, {"id": "ef2aja4", "text": "Honestly you shouldn\u2019t rep these people in the purchase of a motel or apartment building - it\u2019s irresponsible for you to learn on the job with other peoples money. \n\nI work buy side and the DD items I would need for both deals is super extensive - trying to tell you what to ask for / look for on a reddit post would be disingenuous. Best I can suggest is that you connect these guys with a commercial broker who will give you a referral fee if the deal closes. ", "replies": [], "depth": 1}, {"id": "efqyvro", "text": "Why would you ever calculate a cap rate?", "replies": [], "depth": 1}]