“So you’re basically brokers?” – a question we sometimes get. The short answer is no. The long explanation is worth understanding, because it’s relevant to anyone planning a real estate investment.
The Most Basic Difference: Who They Represent
A broker represents a deal. They earn when it closes – not when a good deal closes, but when a deal closes. Sometimes they represent both seller and buyer in the same deal. Conflict of interest is part of the business model, not an error in it.
An investor advisor represents the client only. Their goal is for the client to come out well from the deal, not for the deal to close. Sometimes that means telling the client not to buy.
What They Bring to the Table
A good broker knows properties, neighborhoods, and runs negotiations. That’s real knowledge that has value. But a broker usually doesn’t perform a feasibility analysis or due diligence, doesn’t plan the mortgage and financing structure, doesn’t think about return on equity (cash- on- cash), and doesn’t build an exit scenario. They bring you to a property. What happens after that – it’s not certain anyone has covered.
An investor advisor also knows properties, but the bulk of their work begins and ends outside viewings: strategy, analysis, financing, negotiation, contract, and sometimes also management afterward.
What They Bring to the Table (Sourcing)
A broker presents properties they have an interest in – theirs, a partner’s, a colleague’s. Not all relevant properties in the market. An advisor searches the entire market based on the criteria set together with the client – including properties with no broker on them.
Until When They’re There
A broker is there until signing and commission payment. After that, the next deal. An advisor is there from the moment of definition until handover of keys – and for some clients also afterward, in planning the next deal.
Can You Skip the Broker Entirely?
Not necessarily. A good broker is a useful tool for sourcing properties and for negotiating with sellers. The question isn’t whether to use a broker but who represents you in relation to them. At Almi we work with brokers as part of the process – but always as those standing on the client’s side, not as another player in the middle.
In Summary
If you searched for a broker and found this article, you’re probably looking for something else. A short conversation will clarify whether what we do is what you need.