Monday, July 27, 2009

Broker as Arranger

Broker as Arranger

An Arranger may be what a broker is anyway. Arrange for the introduction of a buyer and seller. What about arranging to introduce investors? Can we do that with a real estate license? I don’t really know and I am sure it is different in every state and nation. I know that some brokers are putting together investments and selling parts of them to investors. In the cases I know of, the broker is keeping part of the property and acting as an asset manager and as a property manager.

This could be an attractive situation for an investor who wants to make sure the “partner” has something to lose. It could also be an excellent opportunity for a conflict of interest. There will be many really good investment opportunities in areas or fields where the broker may not have the necessary expertise to manage the assets or the property. A broker would be severely limited that only worked with as many projects as s/he could manage on their own. Perhaps a better model would be for the broker to identify some really competent investor/asset manager types and help them find compatible investors to obtain the necessary capital.

David Segrest is a REALTOR® in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com He is also a contributor on Argentina to: http://realestatebloginternational.com/

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