CO-BROKER
Sometimes, the landowner will sign agreements with a broker who will then invite other brokers to view the space to expand his reach. He will then have to split the commission or pay some sort of finder’s fee if that broker brings in a buyer. It is very possible you may deal with a co-broker before you get to deal with the owner and their actual broker. The co-broker will have little incentive to negotiate with you as he isn’t connected with the property and it would affect his commission directly. Get past them and speak to the representative or the actual owner.
BUILDING CONDITION ASSESSMENT
This will be done after a deal is made. It’s basically the inspections that will take place. The assessment will look at the structural aspects of the building to make sure there are no long-term problems: roofs, walls, mechanical aspects, electrical systems, and plumbing systems. This is done before the deal is signed. Then, if something comes up, the owner is responsible for fixing it. Unlike general remodeling, structural and system problems are on them before it is sold. You will probably get an outside inspector with no allegiance to either party to conduct this. Your broker should refer one to you and the owner. You don’t have to use the other party’s inspector.
NET OPERATING INCOME (NOI)
Chapter 13 is solely on this topic if you want to know more about it. NOI is how you determine whether the investment will be a
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