Page 121 - Trump University Commercial Real Estate 101

Locking in Y our Profit

your offer to the seller. It gives you a chance to meet with the seller
and talk over any issues that may be brewing.
Brokers usually won ’ t allow you to be there, because they think
you ’ ll screw up the negotiations. I also own a real estate brokerage
company, and I train my agents not to let buyers in the room when the
offer is being presented. Still, it ’ s worth asking.
When I tell investors that I ’ m also a broker, I often get the ques-
tion, “ Do you make your offer from your company to save half the
commission? ”
The answer is “ no, ” for two reasons. First, because I buy all around
the country, I would have to apply for a brokerage license in many
states, and it ’ s just not worth the bother.
The second reason is the one you should focus on: I want the
seller ’ s broker to get the full commission because if he has another
offer pending and it ’ s one of his buyers, he ’ s going to want me to win,
even if the other buyer ’ s offer is less than mine.
Let me explain. A broker brings two offers to the seller. One is his
own buyer and the second is from another broker — it could be your
broker.
This is what the broker is likely to say:

Mr. Seller, I ’ m happy to present two offers to you.
One is from a buyer with whom I ’ ve worked in the

past. She has a solid reputation, her financials are in
order, and she is a proven closer. The other offer is
from another agent in town. I haven ’ t done much
business with him so I ’ m not sure how he conducts
business. I ’ m not familiar with her buyer, either, but
their offer is a little higher.
It ’ s up to you — You could go with the proven
closer, or you could get a little more money by going
with this other buyer . . . I ’ m just not so sure that
we ’ re going to get to the closing table as quickly.

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