Business Sale - Broker Commision Question
Hi Wondering, if anyone of you can suggest your opinion on this situation:
I saw a business for sale on the MLS (I am not an agent but have access to MLS via a friend who is an agent in NJ). I called the Selling agent and was put in touch with the Seller. Now, seller and I have agreed to go into 50/50 partnership ( I am buying 50% of shares)
In the MLS, the commission is listed as 6% (3% each for Seller and Buyer agent). Now, when the seller talked to the Selling agent, they want 100% of the commission. I am wrong to think that this is unfair?
First, if I wanted to, I can always bring in my buyer agent (friend) and they will need to split 3% of the commission with him. Second, as the end transaction is 50% of business and not the entire business should not the commission be half (not sure?)?
What leverage do I have when I talk to the Seller Agent? Suggestions?
Thanks,
Jack
The sales commission will impact the buy price, so I have a interest in keeping it as low as possible. If he is selling 50% of business, then the commission should be 50% as well.
You are correct in saying that by bringing my friend buyer agent into into the picture the commission will split 50-50 between the two agents. I just want to use it as a leverage with the Seller agent to agree to a lower the commission. At the end if we have to pay full commission so be it. I rather have my friend get half the commission than the buyer agent.
Thanks!
Jack
One of the important aspects of a business is the number of sales performed to get profit. It is always the focus and aim of any business establishment to get as much as one could from the number of sales. Create a marketing plan,Improve the quality of your products or services,Know your target market,Use the power of internet to bring the product closer to the consumers and Keep on being updated to the changes in your market.
Chase, Flagstar to name just a few have special programs to rehab properties in the distressed older neighborhoods. It is called Mycommunity.
My suggestion that you do this program as a non-profit and get government funding to do so. 501C rehabbing gets preferntial treatment with the government today.
In NC, I avoid "pools" and would (if it were me) just use a multi-member LLC.
Well, there is also an exemption for "accredited investors" who have to have substantial net worth and/or investing experience. As long as the "extra" investors are accredited you could probably go to 50 in a private placement.
The other problem is finding "locals" in the kind of neighborhood you describe who also have the money/wisdom/expertise to invest. In the deal where I did this the "locals" with cash lived predominantly on one side of the tracks the investment properties were on the other.
http://www.texasinvestored.org/top10.php
Pay special attention to number 7
http://www.ssb.state.tx.us/
Hi,
The change in fashion is less likely to affect those organisations which have started the process of internalising community investment.