1st a little about me: I have been in residential RE for 4 yrs.
also a Reg. Nurse where I stayed on part time to keep my lic. up to date in the event of hard times.
Now the doctors i work for have finally given me a chance to find them some comm RE. We are working on a build to suit purchase for 6+ million and a 9700 sf lease.
I have several questions about this.
1st the lease, I have negiotiated the terms,rates etc they sent us the LOI which listed my commission also. Then the lease states that the comm split is a sep agreement between listing broker and me. Is the LOI that agreement or should I get something else in writing? Also do I get paid at lease signing or when buildout completed and they open for business?
Also, the group I represent are having a RE Atty review and negio. the lease with landlords atty. Now making comments that I'm doing nothing to be getting that much money. I'm not sure what they want me to be doing at this time. I found the place,set up meetings with agt then landlord etc until they sent the contract to attorney. now they are hashing things out.
Any advice?
The build to suit is still being negiotiated and I have had seller reduce price over 1.2 mil so far. This will be a purchase that will take about 7 months to build. When will I get paid my commission? at signing and deposits or upon completion and closing.
Sorry for lots of questions but appreciate your input
Thanks

all terms are negotiable... so hustle.
I would get paid at signing, which should be when the listing broker is getting paid. You are actually getting part of his/her commission... it is probably published in whichever database you found the listing.. and governed by that listing service's rules.

It seems like you need a lot of help... I unfortunately don't have the time to coach someone step by step (is negotiable, remember so you can structure it any way you desire)... you should have an exclusive representation agreement executed by your doctor clients... which outlines your duties and responsibilities and your compensation.

In terms of you getting compensated for not much, well I always tell people that I get paid for what I know and not what I do... in other words, your doctors probably charge $250 a visit for a physical exam... they dont get it for putting their hands on their client's testicles and asking them to cough --- they get it because they know what it supposed to feel like...

in your case this "knowledge/experience" argument may not hold water... but you should have a buyer's agreement already signed (I hope)

Best of luck, and work closely with the listing broker (or your broker, if you have any.)

Who is making comments abotu your commission??????


You will learn in commercial to protect your [censored] before you show them things. It's not like residential at all. You will get eaten alive. It's not that they think you haven't earned a commission it's the sellers and buyers seeing how they can trim down there costs and they are looking at you if your contracts aren't set up right.

You need to clarify here: It sounds like to me you have a developer or land owner that is willing to build a building on there land in return for a long term lease for the doctors correct???????

If that's the case you would get paid on the lease as the buyer isn't purchasing the property just leasing the building.

They could be paying for the building and then doing a ground lease.

When I get paid by developers for land deals I make my commission in the contract pyable in cash at closing as a condition of closing.

Sometimes the attorney just reviews the contracts and if it doesn't mention commissions the attorney does not know about it.

You need to check on lien laws in your state. If they mess with us in Ga not on residential but commercial we can slap a lien on the building and land and halt the whole closing process to get paid.

For them to pass lien laws specifically for this shows you how often buyers and sellers try to screw commercial brokers.

Great points both by Smiley Dog and Super Realtor regarding your clients making an issue of the commission.

In my area, when I send out an LOI or receive one, the "Commission Section" makes no mention of the specific amount, it simply states that landlord representative and tenant represenative shall be compensated per separate commission agreement. Commission amount is not their business to know! Good luck...

I would find an experienced commercial agent and work with them 50 50 on the deal. Commercial is not something to go into blindly. Your friends will get mad at you, and you could get burnt. Sure, you might be lucky and everything will work out, but they are 2 different ball games in most cases. THat's what I would do at least. Every area is different with different customs and laws, so I can't really say for sure what to do. But I would definitely partner up with a commercial agent from my company who could do the technical stuff. Your docs should respect you for wanting to have an additional expert besides yourself to make sure they get 200% service.

Dont let the money interfere with your judgement. Do you not have an experienced agent in your office that you could brain pick? I have a CCIM in the office that I could take to lunch. Everyone has to eat. Even if it took paying a fee to another brokerage i would make sure I knew how to dot my i's and cross my t's. One commercial deal could screw your rep if you botch it. I think they would respect you more and you can thus EARN more of your commission. Very tricky trying to go it alone. There are tons of ways to get taken advantage of.