Jay The Realtor BRG Portal
common Questions

F.A.Q.

What are the services are are offered ?

We typically provide services to Current Property Owners. Real Estate Syndication Groups, Hedge Fund Capitals and other Private Equity Funds.

CRE Brokerage: Assist clients with the rental, purchase or sale of industrial, commercial or residential property. They manage everything from searching for properties that meet the needs of clients and preparing contracts to scheduling viewings and making property listings.

Financial Management Consultant: Our financial management services include budgeting, rent collection, and financial reporting, providing property owners with a clear and accurate picture of their investment performance.

Risk management and Insurance Associate: We help property owners identify potential risks when obtaining the appropriate insurance coverage to protect their investment.


WHY WOULD A PROPERTY SELL OFF-MARKET?

There are many reasons that a property owner would decide to sell their property without taking it to marketing, including:

Fewer commissions and finder’s fees paid to brokers, which means the seller will net more on the property Less “sales” risk, since tenants can see on-market properties as a risk to their business and will sometimes move elsewhere

No lowball offers and time-wasting tours from unsophisticated buyers that don’t have the ability or don’t intend to actually close on the property And less intrusion or unwanted attention upon the operations of the asset

Now, there can also be drawbacks for sellers that let their properties go off-market.

Since they’re not releasing the opportunity to all potential buyers, they may not get the most competitive bidding and could lose out on earning top dollar for their asset.


WHAT TO EXPECT WHEN WORKING WITH BRG?

The Buyer's Party has the sole discretion and the right to elect not to proceed with the Transaction with the Seller at any time up until the execution of a Purchase and Sales Agreement.

Assignments to third parties are not allowed.

Seller will not release confidential information without Buyer's Business Bio/ Resume and Confidentially Agreement.

During the offer and negotiation phase, the Seller has the right to approve or determine any matter, with the Seller's approval or determination at their reasonable discretion, unless expressly provided otherwise in the executed Letter of Intent.

Seller shall provide or pay for a property survey, if required.

The Buyer's Party shall choose the Title/Escrow Company.

The Buyer's Party shall pay for the Buyer’s Agent Fee [Commission] to Birchwood Realty Group. The Fee is 0.500% of Final Sales Price that less than $100,000,000. The Fee is 0.250% of Final Sales Price above $100,000,000. [Example A: Final Sales Price is $10,000,000 = $50,000 Commission Earn] [Example B: Final Sales Price is $130,000,000 = $325,000 Commission Earn]

No Transactional Funding is allowed (Excluding a 1031 exchange).

A formal Letter of Intent is required prior to site scheduling. No "Site Unseen" Purchase Sales Agreements are allowed. Partial Earnest Money Deposits (EMD) are due when presenting Letter of Intent.

Seller will review Letter of Intent without the following: Broker Representation Agreement, Organization Chart including Property Management, Sponsorship Resume and Loan Term Sheet. ** Completed Credit Report Application if Buyer intent to assume current Seller's Loan.

All contingencies' shall be dissolved before presenting Purchase and Sales Agreement. The remainder is due at the execution of the Purchase and Sales Agreement.

The Buyer's Party shall pay for all closing costs. The BRG will estimate closing at 2.00% in financial analysis, by default.

WHY YOU SHOULD FIND OFF-MARKET PROPERTIES?

Better Negotiation

Position When you’re the sole potential buyer looking at the property, you’ll naturally find yourself in a better negotiating position.

On-market opportunities, especially ones that are high-quality, will be in demand, and prospects will drive the price up or give the seller a strong position from which to negotiate, meaning you may not get as good of a deal. When buying commercial real estate, you want every competitive edge you can get.

Privacy

Depending on how high-profile the property or parties involved are, you may not want the local papers or other sources to discover what you’re working on. This privacy will give you the opportunity to work on your plans in peace without having to answer intrusive calls from other brokers, reporters, and neighbors.

Seller Flexibility

In my experience, working with sellers to buy their property off-market will often lend itself to far more flexibility with the deal terms than you’d otherwise find. You may be able to work out a longer due diligence period, have more candid conversations with the seller about certain aspects of the deal, or get an outstanding price. Off-market deals can also become far more creative and you could negotiate seller financing terms, a partnership with the seller where you won’t even need to come out of pocket, or any number of other opportunities if you’re willing to flex that muscle. Not having to deal with multiple parties can alleviate the stress from a seller and make it easier for them to just work with you.

Why Would A Property Sell Off-Market?

There are many reasons that a property owner would decide to sell their property without taking it to marketing, including:

Fewer commissions and finder’s fees paid to brokers, which means the seller will net more on the property Less “sales” risk, since tenants can see on-market properties as a risk to their business and will sometimes move elsewhere

No lowball offers and time-wasting tours from unsophisticated buyers that don’t have the ability or don’t intend to actually close on the property And less intrusion or unwanted attention upon the operations of the asset

Now, there can also be drawbacks for sellers that let their properties go off-market.

Since they’re not releasing the opportunity to all potential buyers, they may not get the most competitive bidding and could lose out on earning top dollar for their asset.


CAN I AFFORD AN RENTAL INVESTMENT PROPERTY?

Purchasing an investment property is entirely different than buying a primary home. 

Also, since you are not planning on living in the rental property, you need to secure a standard mortgage loan with the following federal requirements: financial reserves based on property value, the number and type of rental properties you currently own, creditworthiness and more.

We Suggest All New Commercial Investors: 

Research in a partnership with with a Real Estate Syndication Group that specialize in your asset class. This is a team of investors that pool their resources into a single investment. that specialize in your asset class. This is a team of investors that pool their resources into a single investment.  Click Here 📝 for a List of Real Estate Syndication Group that are active in the Texas Multifamily Market.

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Financial Analysis Considerations

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Market Analysis and Location Selection