Hourly Rates That Would Make a Lawyer Blush

I’ve been working with a homebuilder recently who asked me to help him find 20–30 lots to build on. These are smaller, in-town lots—not the acre-plus kind many of you own.

We spent about three hours driving around the area he was targeting. The next day, I spent an hour reaching out to builders and developers in that part of town, and another hour following up.

It’s not a done deal yet, but I’m about five hours in, and I think we found the right fit. If this closes, I’ll probably make around $3,000 an hour on this deal, assuming a few more hours managing the transaction.

Sounds ridiculous, doesn’t it?

Well, not really.

That kind of result only looks easy. I’ve spent years building the relationships it takes to pull something like this off. Builders and developers are swamped. And in my business, there are plenty of people who will waste your time—or worse. So getting these folks to even respond, much less share useful info that could help a deal come together, isn’t something most people can do.

There’s no charge to the client unless we close, so there’s no risk on their end. And I’ll admit, I probably got a little lucky finding a match this fast. Normally, it takes longer. But this is why experience matters.

What does my client think about the fee?

He’s thrilled. Honestly, if I’d asked for more, I think he would’ve paid it. A builder makes money when he sells houses. If he doesn’t have lots to build on, he can’t sell anything. So the faster he gets lots, the faster he can do what he’s in business to do. He wants to pay as little as possible, sure—but he also knows value when he sees it.

There are discount brokers out there. But when you’re not paying anything up front, and when you’ve got someone with real business negotiation experience (not just sales experience) working for you, chances are you’ll come out ahead—even if the commission isn’t the cheapest.

Add in the peace of mind of having an honest advocate in your corner, someone with the right experience and connections to help make things happen faster?

That’s an easy decision.

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