Student Question Answered

From the desk of Terry Hale:

I’m sure this will help… See the answers below!

QUESTIONS: I have a couple of questions about a broker’s commission using
the master lease option technique.

1. How does a commercial broker & real estate agent get paid their commission when the MLO
technique is used ?

ANSWER: The commission still get’s paid no matter what. It’s typical for the seller to pay out commissions but I always say if you get a smoking MLO deal don’t blow it for 3%-6% commission. You can also negotiate with the broker and pay out a smaller % upon commencement of the Master Lease and then more when you exercise the option to purchase.

2. How can we entice a commercial broker with up front commission using
MLO technique when they have a listed property ?

It seems brokers shy away from using this technique, because they don’t get paid like
a typical convential loan

Any help is greatly appreciated

ANSWER: Simple, the broker (especially if they have 180 plus DOM “Days On Market”) will be happy the deal is done… let them know we need a little time to turn the property around, get it to its highest and best use and then we’ll buy it and then they get paid.

MLO is a great tool when used and explained the right way. I have 2 trainings coming up. Los Angeles CA June 27^th and 28^th and New York July 16^th 17^th and 18^th and I highly suggest you come and learn it all the right way.

It’s next to nothing to register, go see at http://www.terryevent.com

There’s a video that explains everything.

Best,

Terry Hale

Tags: commercial real estate, hale publishing group, terry hale