Page 262 - Trump University Commercial Real Estate 101

TRUMP UNIVERSITY COMMERCIAL REAL ESTATE 101

him to sell you your own property . That ’ s right, ask him to pitch you the
property so you can see what he will be telling potential buyers.

The broker should have a multi colored, multi page brochure made

up, describing the property, selling the highlights, and laying out the
numbers. If a broker can ’ t be bothered to make a brochure because he ’ s
not sure if he will get the listing, that broker is not the right one. Look
for hungry brokers who are happy to go the extra mile.
Other questions to ask about their marketing campaign are: how
big is their list; how big are the lists within the office (not the broker ’ s

personal list); what web sites will the property be featured on; and will

they advertise in the classifieds. Good marketing campaigns are multi -
dimensional, as you know.

How Much Should You Pay in Commission?

That depends on how well you negotiate. In general, the higher the
property price, the lower the commission percentage.
Commissions can go as high as eight percent of the purchase price.
More common are commissions around six percent. As the price breaks
the million - dollar mark, commissions start to trend downward. At
$5 million, they drop a little more. The same is true at $10 million and
$20 million. Won ’ t it be nice when you ’ re selling your properties
for $10 to $20 million! Everything I ’ ve been covering in this book is
intended to get you there.
I ’ ve seen commissions as low as one percent, but that ’ s unusual.
Even with deals worth many millions of dollars, commissions usually
bottom out at around two percent.

Insider Tip

If a broker sent you a deal that you did and now are looking to re - sell,
do not try to negotiate a below - market commission with that person.
If you do, she will not send you more deals. Why should she, when she
knows that investors like me will be happy to pay them the full - market

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