OPERATIONS
OPENING OPPORTUNITIES
Establishing Credibility in Commercial Real Estate BUILDING A TRUSTWORTHY REPUTATION IN THE COMMERCIAL INDUSTRY IS KEY TO UNLOCKING ACCESS TO BETTER DEALS AND BETTER OPPORTUNITIES. HERE’S HOW.
By Neil Timmins
I n my home state of Iowa, the person who cuts my hair went through 3,500% more training than the real estate agents who navigate people through one of the largest financial decisions of their lifetime. Sitting for the Iowa real estate exam requires 60 hours of coursework compared to the 2,100 hours necessary for the cosmetology exam. Although the requirements to become a licensed agent vary by state, the threshold to enter the residential real estate industry is relatively low. There are hundreds of thousands of residential agents in the U.S. Operating in the commercial real estate world is a whole different story. Fewer than 10% of all CRE professionals obtain the coveted CCIM designation (the industry gold standard). The commercial real estate world is small. Most brokers know every other commercial broker in their market. They regularly do transactions on a national and global scale. If they don’t know you, chances are they know someone who does. There is nowhere to hide. Your reputation is everything. If you are looking to enter the commercial real estate industry, how do you establish yourself as a credible player? What actions should you take to establish a persuasive and authentic influence? Building
a trustworthy reputation in the commercial industry is the key to unlocking access to better deals and better opportunities. In this tight-knit industry, your margin of error is low. You have no option but to put your best foot forward right from the beginning. Here’s how.
buy multifamily apartments in Tulsa, Oklahoma, between 50 and 100 units with value-add opportunities.” Be prepared to demonstrate a track record of success in real estate or an adjacent field. Build a strong reputation by stating clearly what you are after—and always follow up with an email or phone call after the meeting. Follow up again in the next month or so. Get a sense of what’s going on in their world and whether there’s anything you can do to help. Look for natural communi - cation touchpoints through industry news or information that may be relevant to them. Establishing meaningful rela - tionships is vital to your success in the industry. In the world of pocket listings, who you know can be more important than what you know. If you want access to deals nobody else sees, you need to create genuine connections with brokers.
ESTABLISH GENUINE CONNECTIONS The best commercial deals
happen off-market, through brokers. Having a reputation that precedes you (in a good way) is a benefit to you and to anyone who works with you. Perhaps most important, the Mark McCormack saying applies: “All things being equal, people will do business with a friend; all things being unequal, people will still do business with a friend.” Your strategy does not need to be based on rocket science. Find the brokers in your target market who list and sell the types of properties you want to acquire by doing a simple Google search of firms in your area. Connect with them via phone or email. Even better? Have a mutual connection make the introduction, if possible. When you first connect with a broker, be crystal clear about your investment criteria. For example, “I
TIME IS MONEY. DON’T WASTE IT. One way to gain (almost)
immediate respect from a broker is to demonstrate an understanding of and respect for their time. Brokers get paid for doing deals. If you can illustrate that you can and will strike when the iron is hot,
30 | think realty magazine :: july – august 2023
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