I have been asked the question on and off several times over the past few years.
“So Duke I read your stuff online and I love it but I am curious.” “How do I make the transition from residential to commercial?”
“Is there a seminar I can take?” ” Is there an online course you would recommend?” ” Are there a few YouTube videos that you think might help?” “How about a few websites that will spell it out for me?”
Well first off I wish you good luck in your new career choice and I will try to help you in any way that I can. Thank you so much for thinking of me as a source that may be able to help you.
For a start there are not that many online”training” environments for #CRE. Residential is at least 5 years ahead of commercial in that regard. Now before you say “wow what an opportunity for a niche play.” Think about who some of the players are.
Let’s take a look at just some of the major players in #CRE…. I SAID SOME!
Take a look at the rosters in your market area. Impressive is it not?
By The Way.
Highlights. 76% male. Average age 57. 66% bachelors degrees or higher. Average 24 years in real estate with at least 15 years commercial.
Now ironically most of the major firms do not belong to NAR. I am just throwing out some numbers here but my guess it that the experience and degrees numbers get higher as do the number of males in those firms. The age….hell sometimes it seems like 100 would be a good average.
Stating the obvious.
No one and I mean no one took a two-day seminar class created a twitter account and took over the #CRE world. The boys just didn’t show up yesterday and throw up a couple of deals on the board. It is a very closed and competitive environment. Not trying to negative but just stating a reality.
So you don’t think that this is your competition….bullshit not only are they the competition…they already own the clients that you think you can get!
A few raw thoughts…with the intent to help.
If you think you can just show up and dabble until you hit some big clients. Don’t even start.
If you come into your market and say that you do both resi and commercial…the commercial people will SLAUGHTER you…and enjoy it. I was just at a SIOR Conference
in Palm Springs. 400 hardcore brokers. They are some of the best in the business.Period. Biggest single deal of the year 563 million.
Of course you say that is not what you are going after..I understand but…most brokers bread and butter is 5- to 15 thousand square feet. That is everyday on the street commercial real estate.
They have their own set of rules.
They use their own contracts.
There is no real MLS system.
If it does exist most likely 30-50% of the properties are not in the system.
They pay you when the mood strikes them…and if they say otherwise…hold your breath.
Wait am I talking about brokers or building owners… uh….both!
Well so far I don’t feel like I am helping that much. Maybe my mind is too closed.
So you want to get online sit at your computer and at your leisure learn commercial real estate.
Kind of like how to put a headlight assembly ( Mom I am getting to it be patient) on a Volvo S80
Two minutes and Poof your done.
Ok enough with the I am a commercial God attitude.
So you want some actionable items…. here you go.
1. Commit to a defined market.
2. Study research and physically walk that market until you can recite the owners, potential clients and their lease/sale timing and terms in your sleep.
3. Find a mentor. Look at the demographic above. They are literally dying to find new talent. I was in a class…..you should have heard them whine for new talent.
4. Give up residential…forever.
5. You have kids to feed! Get up in the morning knowing they need food from a commercial deal you make.
6. Go and get recruited to a firm that fits you. They may be begging for talent. They don’t just take anybody. I have been in those rooms. A+ game or there is no game at all. It may take 5 interviews with the same firm before they decide.
7. Quote from a well-respected friend of mine ” If a residential person calls me about a deal they are essentially offending me and my firm.” We are the commercial real estate professionals.” ” Don’t ask for a referral we already have them or the building owner in our database” “I can 100% guarantee that.”
Is this helping?
I know that you hear about the big money deals.
You see the suits.
You smell the power.
The shark invested waters are deep and cool.
Can you do it?
Will you do it?
No really…will you actually do it?
Look in the mirror.
Think you have what it takes. Yes?No?
Maybe your wife does!
Comments points of view and opinions are always appreciated.