Would it be possible to pay the commission of a commercial broker in the form of a note?

I know the broker's commission is the least of all the other fees involved in the purchase of apartment building. I just want to be as creative as possible. Even if I add a little interest to the amount, make it a win win.
In Buying Property - Asked by Ronnye L. - Nov 21, 2011
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Answer(s)

Francis L.
Broker/Agent
Santa Clarita, CA

Yes, you should be able to have the commission paid in the form of a note. It's still taxable income, just paid in payments, instead of a lump sum at the close of escrow.

Nov 21, 2011
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Chris R.
Broker/Agent
Denton, TX

Certainly - commissions are entirely negotiable as to amount and terms between the parties involved.

Nov 21, 2011
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Jacob H.
Broker/Agent
Saint Paul, MN

You could even see if the broker would be willing to "add" his fee as equity into the deal. For example, instead of paying a 3% commision at the purchase, you could give the broker 3%-5% equity in the deal. So if you were going to put 20% down anyways, you could put 15% down and 5% down on behalf of the broker. This works nice if the investor plans on selling and not holding. Then you make sure to pay the broker a nice fee when he sells the building for you ;)

Nov 21, 2011
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Sam M.
Broker/Agent
Eagle, ID

I would most certainly take a commission in the form of a note with 20-30% of the commission paid at closing.

Nov 22, 2011
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Dann S.
Broker/Agent
Tempe, AZ

If your broker is up for it go for it! It's all negotiable. But it raises a couple of questions in my mind.
First. Is this just a short term note to facilitate cash management, taxes etc. if so not a problem. If on the other hand, a couple of points on the deal make it unworkable, I would suggest taking a second look at the deal.

Nov 23, 2011
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Bren S.
Broker/Agent
Marietta, GA

Absolutely! Everything pertaining to a transaction is negiotiable.

Nov 23, 2011
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