Selling Commercial Real Estate Can Be Tricky
Selling commercial real estate can be a little bit tricky. People buy and sell houses all the time, but the commercial real estate tends to stay in the same hands for a long time. You see, when you sell commercial real estate, you aren’t necessarily going to make a profit – at least compared to the amount of money that you would make if you kept it. Renting commercial real estate is often an extremely profitable and lucrative business, so if you chose to sell commercial real estate, you should consider how much residual income you might be losing.
I saw this philosophy in action when a friend of mine sold a shopping center in Alaska. There wasn’t enough money left in the deal for his commission, so the buyers proposed that he take a $400.00 a month commission for the life of the sales contract. My friend had to think long and hard about the proposal, but in the end he accepted it and he was glad he did, because he ended up receiving far more than would have under the normal commission structure.
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