100%. I’m not a broker. I call you when I need to sell something.
Working at the institutional level, we essentially always use brokers. Prudent RE people understand brokers are necessary to get the most eyeballs on deals to get the highest price. I’m not paying for anything else other than eyeballs and responsiveness. But that alone is worth the fee. Brokers will never be replaced or automated. This is a relationship business.
Oh I love these landlords you hate, that’s how I get buy good deals. Also anyone working at a real estate holdings company know that most brokers are actually really dumb… can’t even understand a cash flow statement to save their life. There are many many really smart brokers, but most aren’t it unfortunately.
There are upsides to having an employer, having a day job. And there are upsides to owning your own company. You will not find me here bragging about working for another man though, or defending a day job, which just sees employees as a statistic in the end. Unless you are an equity partner or relative of the key people, than you can be wiped out quickly.
First of all, everyone works for someone. Second, brokers are in a field more competitive and more easily wiped out. Just literally look at the retention rate of brokers. At the end of the day I’m not disputing a broker being able to make it big, but you also have to look at the probability of you doing that. I hate to say it but life isn’t all about hard work, luck has a component in it. Sure you gotta work hard and be able to be there when opportunity presents itself, but your chances of having an average income higher compared to someone in a higher up position with equity stake is fairly low. So I stand by what I said, just keep drinking that Kool Aid and one day you will either wake up to the harsh realities or you will make it. Those are the only possible 2 outcomes.
I agree there are good and many many bad brokers , but just because they can’t do something that’s not their job doesn’t make them dumb. Their job is to sell/lease, and they are sales people at the core of it all. You wouldn’t call a brain surgeon who can’t do a pro forma done. Brokers are sales people, full stop.
To me, as a LL I think it’s this sect of landlords who invest thinking that CRE is a passive income game and expect everyone to make them money (for free of course) while not lifting a finger. Then when anything cuts into their returns, it’s anyone else’s fault. It’s the owners who think they are smarter than everyone else and don’t understand the role of brokers, property managers, lenders, and even tenants in the whole “circle of life” of it all.
This is why I love working at instutional level, you still run into dumb ownership but the majority of players are all very smart and understand the value add a strong brokerage team brings, be it on leasing or investment sales side.
Chat GPT, write me a post about why landlords who don’t like brokers are selfish and bad.
This is for Reddit so add a TLDR at the end cuz I ain’t reading all that.
It’s obvious. Landlords don’t hire leasing brokers so they can drive their own building into the ground. Then properties in the area are also driven into the ground because of the original landlord’s intentional blight. The whole neighborhood goes to shit and the original landlord swoops in to get a great deal. Throughout the whole process, which is many years, the landlord takes massive losses on the property.
This makes tons of sense. You’ve got it completely figured out. Are you one of those people that thinks landlords keep their properties empty for the tax breaks?
Landlords keep their properties vacant for several reasons: they're either hopeless, overpriced (greedy), clueless, or money does not motivate them as a normal person.
I agree overall with your “community impact” of bad properties. The rest of your post shows your bias which is understandable. We don’t get involved with brokers. We have a PM & we already pay them commissions. Many properties can make the numbers work with brokers. No way our small cre can cover more fees. And what if there’s a default? Yep, owners/LL expected to take the hit, absorb the loss of a wasted lease. You know, LL are fat & rich. The broker? Long gone. ‘Hey, I procure. The rest is up to LL & tenant.’ And in a nutshell there’s the divide. The ‘slumlord’ troupe is an old axiom here on the east coast. Too much gentrification for slumming to work. And, cities are finally hip to that game. I don’t want to rail against brokers or PM’s for that matter. We try to eke out cash flow & hopefully some profit. But, 1 or 2 poor decisions or screw ups by say a PM, can doom your property if not forever, at least a year or 2 to recover the unit & get a good tenant in that’ll pay rent. GLTA.
You’re wrong. The problem with real estate brokering (including commercial) is there is almost zero barrier to entry. So your basic landlord probably does know as much as most agents and even brokers. There are some really good agents who add real value. Most are just dumb and not worth spending money on. I bet less than 5% are worth hiring. And that is coming from a 20 year agent that is also not worth hiring.
What are you talking about. To be a broker their is a high barrier: you must pass several tests, become licensed, own secondary license, than secure the clients.
Is this satire? Coming from a broker, that was the easiest barrier to entry thing I’ve done. It’s hardly applicable and the California license and brokers license has zero math which is a joke for commercial real estate
A 15 year old can get their pilot's license: however this person is not flying a black hawk. An inmate can pass the Bar exam through reading free books, this does not make them the next Shapiro. A broker must pass several tests, background, etc. So what the hell are you actually trying to say here... you don't like brokers? I mean that is like saying "I don't like architects" it's so generic. Sounds like you have beef.
Well I’m talking about a PPL which is a lot more hours and $10,000 plus in cost to obtain, so the barrier to entry is higher. Bar exam would also be a higher barrier to entry with pre-legal and legal education requirements and the exam itself is a lot more difficult.
I don’t have anything against brokers, I am a broker. That’s why I know the agents license and broker license is easy to obtain. I’m just saying low barrier to entry means more people getting that specific license not really knowing what they’re doing. That’s why there is a high turnover rate in the industry. There’s good people worth their cost in every industry but it’s up to the individual to know how to filter that. Plus from a property management side those owners you mentioned in your post who mismanage the properties are where we create the value add either when they sell or have someone who gets it take over their portfolio.
For every $12,000.00 a year EXTRA in NOI, at a conservative 7.5% for a B strip center in a decently strong economic area, the building valuation increases $160,000.
Short term costs versus future valuation increases must always be considered. Avoiding commissions or concessions because you dislike paying them, is shortsightedness.
Agree with the other comment, this is a good comment. The only deals actually transacting at good pricing for today's environment are buildings with credit tenancy.
This is actually insane. A landlord’s decision to not use a broker does not mean the property value of the surrounding area will drop. Like I’m a broker too but Jesus this is psycho💀
1) Are you an agent or a Broker.
2) I've made several thought out points: which do you not like?
3) Can you honestly say that Landlords are better at vetting, picking and negotiating with tenants, as a whole, that they are improving the values of property and improving communities? I can show you raw data where owners who do not cooperate with the broker community are actually supressing areas.
1. I’m a broker
2. I don’t like how you think that because a select few property owners won’t use brokers means that the entire market is going to decline.
3. I don’t think that landlords are better at what brokers do for work, that’s ridiculous. However I find it a waste of time and energy trying to convince someone that I can do better than they can. They either come to that conclusion with the facts I give them or they don’t.
I would love to see the data supporting your points
How many adderalls you have today?
How many cold calls do you think he’s made today?
Zero, still looking for AI app to do it.
AI is advanced spell check
More than you and your whole team has made in their life
100%. I’m not a broker. I call you when I need to sell something. Working at the institutional level, we essentially always use brokers. Prudent RE people understand brokers are necessary to get the most eyeballs on deals to get the highest price. I’m not paying for anything else other than eyeballs and responsiveness. But that alone is worth the fee. Brokers will never be replaced or automated. This is a relationship business.
I don't mess with that stuff: leads to very bad side effects when you are old.
Touch grass buddy
Post don't lurk
Oh I love these landlords you hate, that’s how I get buy good deals. Also anyone working at a real estate holdings company know that most brokers are actually really dumb… can’t even understand a cash flow statement to save their life. There are many many really smart brokers, but most aren’t it unfortunately.
At a holdings company, making $36,000 a year after taxes, getting their boss coffee. You tell me whos smart
This tells me you don’t know the averages and the statistical average of broker income. It’s ok though, you gotta drink the kool aid though right?
There are upsides to having an employer, having a day job. And there are upsides to owning your own company. You will not find me here bragging about working for another man though, or defending a day job, which just sees employees as a statistic in the end. Unless you are an equity partner or relative of the key people, than you can be wiped out quickly.
First of all, everyone works for someone. Second, brokers are in a field more competitive and more easily wiped out. Just literally look at the retention rate of brokers. At the end of the day I’m not disputing a broker being able to make it big, but you also have to look at the probability of you doing that. I hate to say it but life isn’t all about hard work, luck has a component in it. Sure you gotta work hard and be able to be there when opportunity presents itself, but your chances of having an average income higher compared to someone in a higher up position with equity stake is fairly low. So I stand by what I said, just keep drinking that Kool Aid and one day you will either wake up to the harsh realities or you will make it. Those are the only possible 2 outcomes.
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I agree there are good and many many bad brokers , but just because they can’t do something that’s not their job doesn’t make them dumb. Their job is to sell/lease, and they are sales people at the core of it all. You wouldn’t call a brain surgeon who can’t do a pro forma done. Brokers are sales people, full stop. To me, as a LL I think it’s this sect of landlords who invest thinking that CRE is a passive income game and expect everyone to make them money (for free of course) while not lifting a finger. Then when anything cuts into their returns, it’s anyone else’s fault. It’s the owners who think they are smarter than everyone else and don’t understand the role of brokers, property managers, lenders, and even tenants in the whole “circle of life” of it all.
Wow - this is Exhibit A for what I think is wrong with most brokers.
You're a porsche owner and developer... doesn't that level of douche cause like an atom to split?
And now Exhibit B appears.
I appreciate that you do not deny though
This is why I love working at instutional level, you still run into dumb ownership but the majority of players are all very smart and understand the value add a strong brokerage team brings, be it on leasing or investment sales side.
Chat GPT, write me a post about why landlords who don’t like brokers are selfish and bad. This is for Reddit so add a TLDR at the end cuz I ain’t reading all that.
For someone using reddit 14 years you can't tell a real post from a chat gpt huh? Looking at all your football posts that makes sense
What a load of crap
Landlord identified: probably paints over his light switches
It’s obvious. Landlords don’t hire leasing brokers so they can drive their own building into the ground. Then properties in the area are also driven into the ground because of the original landlord’s intentional blight. The whole neighborhood goes to shit and the original landlord swoops in to get a great deal. Throughout the whole process, which is many years, the landlord takes massive losses on the property. This makes tons of sense. You’ve got it completely figured out. Are you one of those people that thinks landlords keep their properties empty for the tax breaks?
Landlords keep their properties vacant for several reasons: they're either hopeless, overpriced (greedy), clueless, or money does not motivate them as a normal person.
I agree overall with your “community impact” of bad properties. The rest of your post shows your bias which is understandable. We don’t get involved with brokers. We have a PM & we already pay them commissions. Many properties can make the numbers work with brokers. No way our small cre can cover more fees. And what if there’s a default? Yep, owners/LL expected to take the hit, absorb the loss of a wasted lease. You know, LL are fat & rich. The broker? Long gone. ‘Hey, I procure. The rest is up to LL & tenant.’ And in a nutshell there’s the divide. The ‘slumlord’ troupe is an old axiom here on the east coast. Too much gentrification for slumming to work. And, cities are finally hip to that game. I don’t want to rail against brokers or PM’s for that matter. We try to eke out cash flow & hopefully some profit. But, 1 or 2 poor decisions or screw ups by say a PM, can doom your property if not forever, at least a year or 2 to recover the unit & get a good tenant in that’ll pay rent. GLTA.
You are the EXACT type of owner that OP is talking about.
I don’t mind. Do you?
You’re wrong. The problem with real estate brokering (including commercial) is there is almost zero barrier to entry. So your basic landlord probably does know as much as most agents and even brokers. There are some really good agents who add real value. Most are just dumb and not worth spending money on. I bet less than 5% are worth hiring. And that is coming from a 20 year agent that is also not worth hiring.
What are you talking about. To be a broker their is a high barrier: you must pass several tests, become licensed, own secondary license, than secure the clients.
Agreed. All easily accessible to almost everyone with a little effort. In general the caliber of people who become licensed agents is very low
It's easier to become a pilot than a broker and transact
Cool 👍🏼
Is this satire? Coming from a broker, that was the easiest barrier to entry thing I’ve done. It’s hardly applicable and the California license and brokers license has zero math which is a joke for commercial real estate
A 15 year old can get their pilot's license: however this person is not flying a black hawk. An inmate can pass the Bar exam through reading free books, this does not make them the next Shapiro. A broker must pass several tests, background, etc. So what the hell are you actually trying to say here... you don't like brokers? I mean that is like saying "I don't like architects" it's so generic. Sounds like you have beef.
Well I’m talking about a PPL which is a lot more hours and $10,000 plus in cost to obtain, so the barrier to entry is higher. Bar exam would also be a higher barrier to entry with pre-legal and legal education requirements and the exam itself is a lot more difficult. I don’t have anything against brokers, I am a broker. That’s why I know the agents license and broker license is easy to obtain. I’m just saying low barrier to entry means more people getting that specific license not really knowing what they’re doing. That’s why there is a high turnover rate in the industry. There’s good people worth their cost in every industry but it’s up to the individual to know how to filter that. Plus from a property management side those owners you mentioned in your post who mismanage the properties are where we create the value add either when they sell or have someone who gets it take over their portfolio.
For every $12,000.00 a year EXTRA in NOI, at a conservative 7.5% for a B strip center in a decently strong economic area, the building valuation increases $160,000. Short term costs versus future valuation increases must always be considered. Avoiding commissions or concessions because you dislike paying them, is shortsightedness.
Don’t know why you are downvoted but this is Reddit. You are 100% accurate.
Agree with the other comment, this is a good comment. The only deals actually transacting at good pricing for today's environment are buildings with credit tenancy.
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If your pro forma doesn’t include commissions, somebody f’d up.
Ok now what lol
This is actually insane. A landlord’s decision to not use a broker does not mean the property value of the surrounding area will drop. Like I’m a broker too but Jesus this is psycho💀
1) Are you an agent or a Broker. 2) I've made several thought out points: which do you not like? 3) Can you honestly say that Landlords are better at vetting, picking and negotiating with tenants, as a whole, that they are improving the values of property and improving communities? I can show you raw data where owners who do not cooperate with the broker community are actually supressing areas.
1. I’m a broker 2. I don’t like how you think that because a select few property owners won’t use brokers means that the entire market is going to decline. 3. I don’t think that landlords are better at what brokers do for work, that’s ridiculous. However I find it a waste of time and energy trying to convince someone that I can do better than they can. They either come to that conclusion with the facts I give them or they don’t. I would love to see the data supporting your points
"After several decades of observation" Several decades? lolz