Hey commercial guys what do you think about this..
So a friend of one my best friends gets into commercial real estate a few years ago in my city. I had met him but didn't really remember him, he kind of connects with me knowing I'd been doing residential for a while. We're both early 30's.
So I'm cold calling one day and I reach a business on accident ask them if they need new space, they say they do.. I say okay, take down their info. It's industrial, looking for specific land, way out of my arena don't have costar or the desire to spend the time trying to do it so I call up my new acquaintance and ask him if he wants it. He says yes and I say 'how's 25%?' His words: "we'll take care of you". Since we're friends presumably through our mutual acquaintance I assume it's a 'word is bond' sort of thing and 25% it is.
So it does take a while for a deal to happen but when it does.. it's 2 years later and a $4M deal paying 3% = $120k commission and for a rookie no less. He's part time and I'm pretty sure than partaking in some leases this is his only sale. So he calls me up and says 15% is a standard commercial referral and 'the bigger the deal the smaller the referral' (like what?) and how he worked on it for 2 years (ya it's $120k f-n commission) so he only 'feels comfortable paying me 15%'. Like you had a full time job while you worked on this deal ..
Moral of the story.. always put it in writing..
What do you think about this? He's basically just screwing me out of $12k don't you think? I guess I'm just happy I'm getting the $18k since his word is obviously worthless..