Setting Expectations and Getting Fee Agreements

Next question is…

Do you think I can ask the bank management to sign a private representation letter with me so I can represent them in an off-market manner in this way I can send an NDA to potential buyers and ask them to pay me a referral or a finder’s fee. If deals are closed.

The backstory on this one is a small bank located on the east coast. Recently emails me a list of their REO properties, such as condo, small commercial properties and apartment land. The bank did place an ad in their local newspaper that caught my attention, but there’s no listing. They will not pay me any commission and did not want me to represent them.

I cannot list their properties anyway, since they’re out of state, .

I don’t know about a private representation letter, but you may very well have luck with , an agreement, a commission agreement.

And so that would basically say that , if I procure a buyer , who closes  on a property that you have for sale at you you’ll pay X amount. I’m not familiar with private representation letter, but certainly a commission agreement or a fee agreement, depending on how you want to position that and whether or not you have licensing and that kind of thing, but certainly a fee agreement is something that you should consider trying to get signed. If you can’t get an exclusive right to sell, then  a fee agreement is a great, the idea to go after. 

Next thing is…

When narrowing down our banks list, is it best to avoid banks with zero non-accrual loan sales? Does this mean they do not or will not sell these assets?

So, we can tell a lot from the numbers but we can’t tell everything. Okay. So, just because a lender isn’t showing past non-accrual sales doesn’t mean that they weren’t sell something with you and, and it doesn’t mean that they don’t have any on their desk right now.

And so  if all the other things are in place, If this is a lender who has the type of asset. So you’re looking for, they look like they’re healthy enough to sell at a discount. They’ve got some charge offs on there and they’re in an area and they have offices around. I would definitely use power search for this.

Then they have offices in and around the area that you’re, you’re looking at , just because they have no non-accrual sales, that they’re currently posting that doesn’t mean that I wouldn’t contact them. I would still contact them. So I hope that’s helpful.

I love getting your questions and I can’t wait to see what you ask next week.