Got a phone call today from a great pair of brokers with whom I have long-standing, mutually-profitable relationships.
They were calling to congratulate me on closing our most recent deal.
On the call, I told them again how much I appreciate their continued help (particularly on this deal, which got a little hairy).
But also I had to tell them I did not share their excitement about the closing.
Why?
Well, for a broker, the deal is done when the deal closes. At that point, the broker’s job is done and he (rightfully!) gets paid.
But, for the principal, particularly if the business model is value-add (eg where there’s a lot of work to be done to the asset), closing is just the start.
Now comes the hard 12-18 months, during which we try to take this broken-down, old building and make it beautiful again.
Wish us luck!