The Conversations to Listen For
The Investment Property Seller
I've had a rental for years and I'm thinking about selling. / My parents left me a fourplex.
Ask: Want me to connect you with my commercial partner? Then call Greg.
The Business Owner Buying Their Space
I've been renting my office for 10 years - I should just buy something. / I'm tired of paying my landlord's mortgage.
Don't answer the buy-vs.-lease question. Introduce Greg.
The 1031 Exchange Client
My accountant mentioned deferring the taxes when we sell. / How does a 1031 work?
Move fast. 1031 exchanges have hard legal deadlines. Call Greg the same day.
The Land or Development Question
My family has owned this land for 30 years - not sure what it's worth. / Someone keeps asking about our corner lot.
Don't guess at value. Call Greg.
The Residential + Commercial Combination
We're selling the business and downsizing - there's a warehouse too. / I'm liquidating everything.
Claim the residential side. Introduce Greg on commercial. Both of you get paid.
How the Program Works
Refer
Send Greg your client.
Call or text with what you heard. You do not need to vet the opportunity - let Greg assess it.
Partner
Put the agreement in writing.
Before client contact, the referral agreement documents 20% on commercial sales and 15% on commercial leases.
Close
Greg handles the commercial assignment.
Greg and his team manage the transaction and keep you informed at material milestones.
Earn
Your brokerage receives the referral fee.
Payment follows receipt of Greg's commission, subject to the referral agreement and brokerage requirements.
Greg's practice is primarily commercial.
He is brought in to handle the commercial need - not to compete for the residential relationship. You remain the referring advisor, Greg makes it clear that you brought him into the relationship, and you are kept informed.
- Your client remains your client.
- You decide how involved you want to remain.
- Residential opportunities go back to you.
- The referral agreement stays in effect through closing.
What Commercial Referrals Can Pay
Commercial commissions vary by transaction, property type and agreement. The examples below show how the economics can scale.
of the commission Greg receives
of the commission Greg receives
Sample Referral Payouts
| Transaction | Referral Fee |
|---|---|
| $475,000 lease | $3,562 |
| $995,000 investment property | $7,462 |
| $1,400,000 industrial | $10,500 |
| $2,300,000 commercial sale | $11,500 |
| $2,700,000 office building | $20,250 |
| $3,400,000 investment property | $25,500 |
| $5,300,000 commercial land | $39,750 |
How the Sales Math Scales
| Sale Price | 3% Commission | 20% Referral |
|---|---|---|
| $1.0M | $30,000 | $6,000 |
| $2.5M | $75,000 | $15,000 |
| $3.5M | $105,000 | $21,000 |
| $5.0M | $150,000 | $30,000 |
| $7.5M | $225,000 | $45,000 |
Paid for a single introduction on a $5.3M commercial land transaction.
Illustrative only. Actual commissions and referral fees depend on the transaction and written agreements.
Common Questions
How much is the referral fee?
20% of the commission Greg receives on a successfully closed commercial sale and 15% of the commission Greg receives on a commercial lease. A commercial practice is more expensive than residential because of all the necessary software so referral fees are a little less than residential.
Do I need a written referral agreement?
Yes. The agreement documents the referral and applicable fee before Greg begins working with your client.
Will my client know I referred them?
Absolutely. Greg makes it clear that you brought him in because the client needed specialized commercial expertise.
What types of properties do you handle?
Industrial, office, retail, land, development sites and investment properties - including acquisitions, dispositions, leasing, site selection and 1031 exchange-related transactions.
How will I be kept informed?
Greg and his team keep referring agents informed at appropriate milestones. How involved you want to remain is up to you.
What happens to my client afterward?
Your client remains your client. Greg's practice is primarily commercial. When a residential opportunity arises, it goes back to you.
What if I'm not sure it's a commercial opportunity?
Call Greg anyway. You do not need to diagnose it first. He can quickly determine whether there is a commercial need.
When do I get paid?
The referral fee is paid when Greg's commission is received, subject to the referral agreement and brokerage requirements.