Twas’ the night before 4th of July…
Today I got another 41 researched records done…now all I have to do is add it to the stack of property records from day one (54) and I have nearly 100 records.
I started looking for warehouses in the southern part of Broward county that were at least 10,000 square feet or larger. I came across a bunch of big “institutional” stuff that I will consolidate into one ownership record.
Traditionally, I will avoid the bigger institutional stuff for a couple of reasons. Most if not all big institutional stuff is brokered by and between the institutions themselves or if a broker is involved it usually a “brother-in-law” deal where asset manager ‘dishes” it off to his brother-in-law or favorite broker.
Institutional deals require a “bake-off” which is essentially a beauty contest between the top two or three national companies with a presence in the market. The broker is invited in for a show-and-tell session.
The outcome of which often has already been decided. However, to meet the minimum requirements of due diligence the asset manager will have an agent come in a perform the “dancing-monkey” routine.
Institutional deals look great on a resume…but don’t pay worth a sh!t! Most big deals are paid on a flat fee basis and while $200,000 is nothing to sneeze at divide it between two or more brokers, agents, and potential interested parties and it gets real thin real quick.
It takes “forever” to get an answer…the asset manager must submit it to legal, accounting, the Ephors, the executive committee and then…and only then if the stars align properly you may get the assignment.
I love private party business! Even though they use a corporate shield you are usually talking to the decision maker. No committee, no legal department, no investment committee…just the owners. Fees are not fixed they are negotiated…not by proxy but eyeball to eyeball.
A quick “No” is much better than a long protracted maybe.
Tomorrow I will be taking all that private party research and doing some “brokerage-by-windshield” and taking pictures…for you guessed it the “Secret Weapon Letters”
Want to know what they are…follow the link below!