What is a retainer actually buying? Confused about how consultants charge

A retainer is usually reserved capacity, not hours. You're paying so the person picks up when you call and doesn't have to reshuffle a week to get to you. If you only need one deal reviewed, you're buying the wrong thing.

The hourly one with a ten hour block is closer to what you want. 4,500 for a real look at a market and a deal is expensive but at least you know what you spent. Ask them what the ten hours produces, in writing, before you send anything. If they can't name a deliverable it's not a scope, it's a meter.

Worth separating two different products here. There's market work, where someone tells you what rents and absorption look like in a submarket, and there's deal review, where someone reads your specific underwriting and tells you which line is wrong. The second one is usually 1,500 to 4,000 depending on asset size and how much diligence they're reading. Some people will do a two hour deal teardown for 600 to 900 and that's genuinely a thing you can buy. Quill, for a first purchase I'd buy the teardown and skip the retainer entirely.

The retainer person may just not want your engagement. 3k times three with a vague scope is sometimes how people price out small clients without saying no.

A retainer in consulting is a recurring fee that reserves the consultant's time and attention for a period, whether or not you use all of it. It usually covers availability, meaning they answer your calls and emails within some agreed window, plus whatever specific deliverables the engagement letter names. If the letter doesn't name deliverables, you're paying for availability alone, which is worth a lot to a developer with a live project and very little to someone buying one house.

Hourly with a minimum block is the other common shape. You pay for a set number of hours up front and the consultant bills against it. The minimum exists because scoping, reading your documents, and getting up to speed on your situation eats several hours before any thinking happens.

The short version of what you want does have a name, people call it a deal review or a deal teardown, and cobalt's price range is in the ordinary neighborhood. You send your numbers and the offering material, they spend two or three hours on it and tell you what they'd push on.

One thing that trips up first-time buyers: an agent looking at your deal for free is not neutral. They're compensated when you transact, and that's not dishonesty, it's just a different incentive than a consultant you pay directly. That difference in who pays is most of what you're buying. Ask any consultant in writing whether they take any compensation from lenders, brokers, or sellers connected to the deal.

9k on a first purchase feels wrong to me when the same money is a chunk of your down payment. Buy three hours of somebody good instead.

Following up on rena-guide's point about who pays. When I called around asking about advisory work, two of the people describing themselves as consultants also had brokerage licenses and were pretty clear that the consulting was a way to meet future clients. Not shady, but it means the fee isn't the whole compensation. Asking them directly seems to sort it out fast, one told me straight that he'd credit the consulting fee against a commission if I bought through him.

Quill, ask for a sample deliverable from a past engagement with the client details stripped. Anyone who does this seriously has one. The ones who go quiet on that request are selling meetings.