Every now and then when we talk shop with brokers and everyone gets a little more comfortable, there is always an interesting, shocking, or just down right hilarious deal story that comes up. The challenge is that these are not always the kind of stories that are typically shared outside of happy hour. We would like to change that. Enjoy!
This story has been shared anonymously. Names have been changed to protect all egos involved.
Industrial Brokerage Life Lessons, The Gloves Are Off
An industrial brokerage professional, about three (3) years into the business at the time, trying to establish himself, just married, buying a house, looking at upcoming labor & delivery expenses, had an oilfield related group as a client. The group relocated from a property, but held the asset to lease out. The young broker found a tenant and closed the deal, but his client refused to pay him the +/- $50,000 fee up front.
At the time, this is the kind of fee that could help him sleep better at night, but they strictly offered to pay it monthly over the term, in check form, and the broker had to come pick it up at their office. Being young, with such a nice fee, and the opportunity to do business with this group again in the near future, he accepted.
Every month he showed up to collect his check, for about six (6) months, at which point he decided it was time to renegotiate the payout. He set the meeting, showed up, and all six (6) partners were there. They were a grizzled crew, tough and battered from oilfield labor, ranging in age from their mid-40’s to their late 60’s.
When the broker asked for his fee to be paid more expeditiously, one of the younger partners presented the following offer: