0%
Taxes at closing for owners
100%
Commission paid in cash at close
2-49
Units per building
Many multifamily owners are not looking to sell. We help you unlock off-market transactions, helping owners make a tax-deferred transition to passive ownership.
For you
A real estate commission for representing the sale
Your full commission
Paid 100% in cash at closing, per your listing agreement, the same as a conventional sale.
Off-market access
Most multifamily buildings never come to market; we open a path to transact with unlisted owners.
Relationship flywheel
Satisfied owners will refer others; each conversation can unlock several more.
For your clients
A tax-efficient transition to passive income
Tax deferral
For a long-term owner, a sale means a large tax bill. A 721 exchange defers that entirely.
Continued ownership
Your client owns a stake in a diversified portfolio with ongoing cash flow and growth.
No management
Professional management means truly passive income for your client.
How it works
Three steps to a commission
01
Identify a long-term owner
Think about owners who have held for years and built meaningful equity, but the tax bill keeps them from selling.
02
Make the introduction
Connect them with Middle Door. We handle the educational conversation, explaining the 721 exchange and whether it is the right fit.
03
Earn your commission
If your client's building is contributed to our portfolio, your commission is paid in full, in cash at closing, per your listing agreement.
Common questions
Frequently asked questions
Your commission
What does my commission look like?+−
Your commission is paid 100% in cash at closing, per your listing agreement, the same as a conventional sale. MDH does not set commission rates; that stays between you and your client.
How does this compare to representing a traditional sale?+−
On your side it looks the same: same listing agreement, same commission, paid in cash at closing. The difference is for your seller, who can defer the tax bill that often keeps long-term owners from selling at all.
Are there arrangements for consistent broker partners?+−
We are building long-term relationships with real estate broker partners and structure our arrangements accordingly. Reach out to discuss the specifics; we are open to conversations about ongoing arrangements for brokers who are actively working with this client profile.
When do I get paid?+−
In cash at closing, per your listing agreement. No referral fee structure and no waiting.
What will you pay? What is your cap rate?+−
Our underwriting team prices it, and fast. Send us the address and the rent roll and we will come back with something real.
Qualifying clients
What kind of client is the right fit?+−
The ideal client has owned a 2-49 unit multifamily building for many years and built up a large gain. If they are hesitant to sell because of the tax cost, or simply want their equity working in a better structure, that is exactly the conversation to start. They also need to qualify as an accredited investor.
What if my client just wants to sell outright?+−
Totally fair, and some do. It is worth asking, because owners often say cash until they see the after-tax number, and partial cash can be part of the conversation. If they need a straight all-cash sale, we are not their buyer, and that is worth knowing early.
My client is thinking about a 1031 exchange. Should I still introduce them?+−
Yes. A 721 exchange is often a better solution than a 1031 for owners who want to stop managing. A 1031 also defers taxes, but requires finding a replacement property in 45 days, closing in 180, and then managing the new asset. A 721 exchange exits them from active ownership permanently, with no deadline and no new building to run.
What if my client owns a single-family rental or commercial property?+−
Our focus is multifamily buildings of 2-49 units. We are not a fit for single-family rentals or large commercial properties. If the client owns a mix, reach out and we can discuss whether any of their holdings qualify.
Working together
What do I actually do to represent a client?+−
Just make the introduction. Email us at Acquisitions@MiddleDoorHomes.com with a note about your client's situation: building size, location, approximate value, and what is prompting the conversation. We handle the educational discussion with the owner from there.
Will you help me explain this to my client?+−
Yes. Forward our one-pager, and if they are interested, help us schedule one call. You are not explaining tax structure. That is on us and their CPA.
What is the typical timeline from introduction to commission payment?+−
Typically a few months from first conversation to close, depending on due diligence and the client's pace. We keep you informed throughout the process.
How does this affect my ongoing relationship with the client?+−
It usually strengthens it. You are solving a problem the client did not know had a solution. Satisfied owners refer family members and other investors who own similar properties.
Are you going around me to the owner?+−
No. You represent your client and we keep you in the loop the whole way. We do not circumvent you or diminish your commission.
Are you actually going to close?+−
Yes. We close with conventional financing. Happy to walk you through our process and share references.
Do you need a tour first?+−
No. We make the offer off the listing data and inspect during diligence.
I can't give tax advice. Is that a problem?+−
No, and the process is built that way. You spot the situation and make the introduction. We handle the structure conversation with your client and their CPA from there.
For your clients
What does my client actually receive?+−
Three things. The tax bill deferred. Income from distributions on their units. And no more tenants, repairs, or management. Their ownership is spread across a portfolio instead of one building.
Is this a good deal for the client or just for MDH?+−
It is genuinely good for the right client. No tax bill at closing, continued ownership in a growing portfolio, and truly passive income that is often higher than what they earned managing the building themselves. We decline transactions that are not a fit.
How liquid is this for my client?+−
Ownership units are not publicly traded. A three-year minimum hold applies to all units, and from year four the partnership targets quarterly repurchase windows, at the holder's option and subject to portfolio liquidity. This is a long-term investment, and not appropriate for clients who need immediate liquidity.
Why a partnership and not a cash offer?+−
For buildings with upside left in them, a cash offer pays as-is value. The partnership pays that same value plus half of what the renovation adds.
How MDH makes money
How does Middle Door generate revenue?+−
An annual management fee of 1.25% of assets under management, our share of the upside above a 6% preferred return, and our own units held alongside owners'. Owners receive 100% of the first 6% of annual total return before we participate. We do our best when the portfolio does.
Are your interests aligned with mine and my client's?+−
Yes. Owners receive the first 6% of annual total return before we participate, we never take more than 30% of a year's return, and if portfolio value falls we earn nothing further until it recovers. We are not a fund with a short hold period trying to flip assets. We are building a durable housing business. When your client does well, we do well.
Have a client in mind?
Reach out directly. We can discuss whether your client is a good fit and how to structure an introduction.