Let me begin by saying that I have managed to survive and even thrive in an unforgiving industry with an attrition rate of well over 90%.
In that time I have taken enough classes, courses, and continuing education programs to earn roughly 3 Ph.D.’s. For years I have maintained a brokers license, mortgage brokers license, and community association managers license.
I was a contributing editor to the pre-licensing class for the State of Florida required program. I have taught thousands of students over the past 30+ years.
I have been a national and regional guest speaker on topics such as valuation, market trends, and the overall real estate economy.
To date I have presided over, brokered, managed, or supervised roughly $1.6 Billion dollars in transactions. I have been a sales manager for at least five different companies and hired, trained, and recruited hundreds of new agents.
I have been certified in property management, advanced 1031 tax deferred exchange techniques, and I have what has been described as the Ph.D of commercial real estate, the CCIM designation (Certified Commercial Investment Member),
I have a best selling book on Amazon and have written dozens of articles on topics as far ranging as the economy, marketing, sales, valuation, negotiation, and safety in commercial real estate.
My company and I maintain an office, research department, marketing staff and all the other infrastructure of a traditional office at a cost of several thousand dollars each and every month.
On average it takes about 12-24 months to develop a relationship of trust and confidence with a prospect. Once that is established, we uncover and clarify a specific need the client has and the real work begins.
Once we have established a need exists, we typically do a proposal or a lease analysis clarifying the need and or where the property positions in the context of today’s real estate market.
That process usually involves finding comparable properties, underwriting, financial analysis, and debt analysis and multi-year projections.
Once we have established an agreed upon price or terms we go to the market. In the case of an investment sale we may access as many as 30 plus websites ranging in cost from free to as much as $650 per month. We may engage in an email broadcast program at an average cost of approximately $145 each.
In the case of a lease, we would use CoStar ($650/ mos.) or LoopNet ($350/mos.) to locate potential properties to meet the clients specific needs. In the event if that a location cannot be identified on those two or more searches we may drive the market targeting specific properties and owners. Depending on the situation it may require using personal relationships developed over a long career to find the correct property.
Once we have identified the right prospect or property we typically will tour the candidates selecting the property that best meets the needs of the client. Typically we will then create an offer in the form of a Letter of Intent to purchase or lease.
That letter will be used to pre-frame the terms and conditions of a proposed purchase and sale or lease. Often this process requires that we create a side-by-side analysis of the financial terms of the transaction. If the transaction is an investment sale, then we will help the buyer obtain the correct financing for that particular transaction.
Once the final agreement has been drafted we will review the document to ensure that the financial terms and conditions have been fully incorporated into the agreement. We may assist the buyer, seller, lessor, lessee or attorney by providing comparable data or even verifying that certain terms and conditions are traditional and customary.
If the transaction is an investment sale we may aid the buyer in the due diligence process by gathering information, ads tracking leases, reconstructing operating statements, and aiding in the packaging for presentation to a lender.
In the case of a lease we may help in permitting, making arrangements for movers, Telcom, cable, utilities, and space planning. We may actually lend a hand in the move itself.
We will review closing statements, closing docs, lease pass throughs, floor plans, site plans, rules and regulations and more.
In the case of of a long-term lease, the owner could be increasing the value of their property by hundreds of thousands of dollars. A long-term credit tenant not only increases value but also provides a long-term steady income for years.
In the event of an investment sale, the owner is generally realizing a substantial profit that could be pyramided into hundreds of thousands if not millions of dollars over a lifetime. From the buyers prospective they get an annuity, which will continue to build wealth for the investor over the lifetime of that investment.
When I have fulfilled the object of my employment, I get paid once and my payment is usually a small fraction of the value of the lease or sale. I get no residual income over the life of the lease or investment. I don’t profit from a sale in future years, I don’t get periodic increases or renewals and when the transaction is over, I get to start all over again.
I have spent thousands of dollars, hundreds of hours, and countless sleepless nights to develop the requisite skill set to help my clients reach their commercial real estate goals. You wouldn’t negotiate with your cardiologist or attorney when you need their specialized services would you?