Expert: Jim Avancena, CPM - 12/30/2008

Question
Hello Jim,

I just received my NC real estate license and am interested in getting started in the Commercial leases as well as buyer and seller representation. I Just moved to Raleigh NC 4 months ago after spending 15 years in the Florida advertising and marketing industry. I have an undergraduate degree in Management and an MBA. I am 40 years old. My question is, if you were in my shoes. What would be your first steps to getting started in the right direction. I have been contacted by several residential brokers to come and take a look, but nothing from the commercial side that I am interested in. thanks for you input, I appreciate it a great deal.
Rob

Answer
Robert-

Raleigh NC is a great place to be starting in Commercial RE and a very fast growing area.  I had a daughter that spent 2 years at NC State and finished at another college.

Commercial Leasing is a business that provides extreme financial reward for workers that don't necessarily have professional skills that match.   I have always been amazed at how much money so many idiots and humans without any strength of character have made!

Leasing is a very complex and narrowly focused real estate specialty.  Your residential RE background will not changeover much to commercial leasing, and you will have to work very, very hard to learn and catch up to where you will begin to make decent income ($70K to $90K).  To make the next step up in the chain will come from continuing to work very, very, hard, developing your ability to project a high level of sophistication, and being lucky.

"Very, very hard" translates to SEVEN DAYS A WEEK, 14 hours a day, and becoming so engrossed in your development and learning that you almost don't take the time to eat. No kidding.  After about 5 years of intense focus and learning, you should have enough base knowledge that you will be able to take off a half day on Sundays and work only 11-12 hours a day.  Aside from the hours, you should be earning real bucks during the time you are working instead of simple learning the business.

You need top level abilities in communications; i.e., you must be a skilled writer and be articulate.  I am exhausted today and that is my excuse to this being a B- level draft of comments.

I assume your MBA means you have a good understanding of finance regardless of your specialty.  That will help but don't expect it to make an impression on clients the way it likely did in residential brokerage.    

You will need to have a commercial brokerage firm hire you so you can learn the basics and watch how other agents work.  Learn the things that you find valuable from all of them.  Each will have good and bad industry knowledge and style.  You will develop a good foothold watching and learning from them.  Learn quickly so you can start making commission soon.  

Note that while you are in your early learning phase, anyone you interact with is a potential future partner, boss, or client.  You never know who may fill those roles in the future, so don't ruin those opportunities by revealing your less attractive features in the office or around others.

At some point you will need to determine if the structure and pecking order of the better agents in your office suggests you will have an opportunity to be included on the better 2 or 3 man brokerage "teams" working the more opportune and high profile listings within your office.  If it is clear that a handful of agents in your office are always getting the better listings and do not seem to be warming up to you, you will need to determine the potential benefits of staying vs. the scuttle butt you have been told about the other firms in the area.

Do not tell anyone; i.e, NO ONE in your office that you are considering other brokerage shops.  Agents are all insecure and will no longer share information with you.   Information is valuable so don't do anything to reduce your avenues to access it.   Be very forth coming and affable with agents in other firms also.  They are not your enemy and are another avenue.   Be pleasant with everyone you spend time with but not overly so.  No "Hail fellow" excess. You will have to make that determination.  Don't kiss-ass either, your office agents will hate that stale routine.

So, simply put, sell your other agents on your value to them, and sell yourself to other brokers, clients, and everyone else.  Make those sales consistently and you will be on your way!

Your inclination will be to stay in residential because you are comfortable doing it.  You can make much more income in commercial real estate and the intellect and business levels you interact with will be far more stimulating than it is in residential.   Don't be afraid that you are too old to start over in commercial leasing.  The change isn't that great, however you will have to work very hard for a certain period of time until you capture that critical volume of information and skill to be where you want to be.

Best of luck.  You know the date, I have to prepare for a busy night.

Let me know how it goes.  I'll be happy to advise you as I have time.

-Jim