Beware Of Rogue Commercial Real Estate Brokers
While investing in commercial real estate investors have to be very careful taking many precautions checking and verifying all documents and making sure that they have invested wisely. They have to take adequate precaution to ensure that their investment is secure too and not be subject to fraud or deceitful intent of malicious persons.
What Is Deceitful Intent?
Deceitful intent is any kind of deceit or a breach of confidence or distortion of facts by which a person tries to gain unjust mendacious advantage over another person. It is a means by which facts are knowingly misrepresented or stated intending to deceive a person with disregard for the truth and where the victim unaware of the malice believe the facts and acts to his or her discredit.
Investors who are purchasing property with tenants going to rent a property or going to offer a lease option should be extra careful in closing any deals and must beware of deceitful intent. There are so many commercial real estate brokers who are on the look out for a trusting landlord who does not have any fraud prevention programs and unwittingly rent their property to these frauds who will not only be delinquent in paying the rent but may also have caused extensive damage to the property. They use unsuspecting landlords as revolving lines of credit and with deceitful intent abscond without leaving behind any tracks to trace them.
What should you guard against?
While dealing with a commercial real estate broker for purchasing a property extra care should be taken to verify that all facts are correctly represented and that the buyer is not being duped by misleading statements of facts by frauds with deceitful intent. The buyer has to carefully study each document use a reliable attorney to verify that he is not being duped in any way insist on document proof for any claims made about the property study tenant information in detail asking for records to prove they are not delinquent problematic tenants etc. Until and unless you have verified studied and analyzed each and every document relating to the property and you until you find no signs of deceitful intent and are sure it is a legitimate deal where you can expect to profit do not sign any agreement. Investors have to be extra careful while taking over an existing loan agreement or land sale contract.
Carefully scrutinize the loan balance; expenses incurred the tenant records liens if any etc. before finalizing a deal. Carefully verify the duediligence and proceed if you are sure you are not a victim of deceitful intent.
The relationship between you and your commercial real estate broker is similar to a marriage: it must be founded on trust and understanding.
Without this groundwork the relationship is doomed to end up in failure. And between you and your agent you’re the one who has a lot to lose. So it is only practical to look after your own interests. The best way to do that is to look for a good real estate broker someone you can definitely trust.
Know where to look for a reputed commercial real estate broker
When in search of a good real estate broker you certainly have to know where to look around. Knowing what you want may be important but having at least an idea of the right places to look for an agent is just as crucial.
Before you set out on a search for a real estate broker ask around first. You can ask your relatives friends or colleagues about their experiences with selling or buying properties. If they can recommend a good agent then don’t forget to jot down his or her number so that you can request for a future meeting.
You can also leaf through magazines and newspaper ads for reputable agents. This would give you the chance to do a check on a particular real estate broker if you want to prior to your actual meeting.
However if you intend to purchase a home instead of selling one you might want to steer clear of property listings. The agents listed there would certainly represent the home seller and not you. And that would totally contradict your intentions of looking after your own interests.
Qualities of a good commercial real estate broker
Knowing what you want: that is the first and most important rule that you should always remember. You should never settle for less than what you intend to get and so should your agent.
You must assess whether or not the commercial real estate broker truly understands your needs. He or she must show an eagerness to work with you until your needs are satisfied. In addition to that he or she must also exude confidence and a sense of professionalism. And it would not hurt to have excellent feedbacks from his or her previous clients. So don’t forget to ask for character references from past home buyers or sellers.
A knowledgeable and experienced broker is someone who shows familiarity with the area you are interested in as well as the price range you have set for yourself. Hiring an expert commercial real estate broker may be costly but at least it would increase your chances of getting what you truly want out of the professional relationship.
Without these qualities you would find it difficult to trust your real estate broker and trust is a very important word in the business of selling or buying houses.
About the writer: Dan Ross has worked in the real estate industry for many years. His main focus is on commercial real estate. He strongly believes that there needs to be ethics in the workplace and the same goes for commercial real estate brokers. He shows tips on how to be focused on achieving the goal but keeping your eyes and ears open. For more insight visit him at EZ Commercial Real
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