Since the year 1990 I have only represented Buyers/ Lessees. I execute a Buyer-Broker agreement upfront and then only after I have concluded at least one transaction representing them as a paid Consultant earning $250 / hour against pre-paid retainers. As a Consultant, I earn not only the hourly rate but also a bonus at close of escrow or upon bilateral execution and delivery of the Lease Agreement, plus satisfaction, waiver or removal of all lease contingencies. The amount of the bonus is negotiable. For easier to find sites it has been as low as $25,000. For difficult to locate sites it has been as high as it is right now at $100,000. The client's obligation to pay the Bonus Fee is credited by whatever amount has been paid me to date at the hourly rate.
Working as a broker, a fee of 6% of the firm term rent commitment is guaranteed by the client less whatever I receive from the seller / lessor. Zero is paid me on lease extensions. For some of my 30+ clients the minimum fee is $100,000 per transaction because qualified, potentially high volume, new-to-industry, EXPRESS Exterior Tunnel Carwash sites are very hard to find....but after just 6-12 months of operation they usually cash flow at $1,000,000 or more annually.
May 5, 2011