Here’s a clip from one of our monthly ATL Zoom Meetings. Inner Circle Member Gustavo asks Rob Rowsell about negotiating with commercial property brokers. Can buyers negotiate cap rates? The answer is YES! You CAN work out attractive financing deals with real estate brokers and sellers – every deal is different!

Rob Explains How To Negotiate Cap Rates

We know that the market, as well as a property’s location, condition, and income production are factors in its cap rate. The brokers themselves can also factor into that number. Rob provides a few tips on how to negotiate cap rates on commercial real estate deals, specifically with property brokers.

While brokers are responsible for getting the biggest returns for their partners, they may also resort to casting a wide net for investors. Every broker has their own top five investors. When none of those work out, they may turn to the other brokers in their office for recommendations. If each of their top five investors pass, the next step is looking for retail buyers.

Building Relationships With Brokers

Then you, a seasoned property investor, come along. Take the time to convince them that you know what you’re doing before attempting to negotiate cap rates. You are not a fly by night operation. When you build a relationship with a broker, you can submit offers that are more realistic than the ones they’ve been sitting on. Maybe the first few offers get rejected, but when the selling broker learns that you know your stuff, you are more likely to get calls from them in the future.

Remember, if you become a member of Rob’s Addicted to Life Community, he will personally inspect your underwriting. What could be better than getting advice from the best?