Expert: Troy Labani - 3/20/2009

Question
Hello.  My name is Rashad and I'm actively pursuing a career in commercial real estate.  I’m in the process of getting my real estate license and I wanted to go to commercial.  I'm seeking any advice / direction on what to expect, what I should get a jump on, who I should talk to, etc.  I want to sell and then eventually invest in, then eventually develop and build commercial and residential real estate.  For now though, I want to be successful in selling commercial real estate to start.  Please, any advice and direction would be extremely appreciated.  Thank you.

Answer
Rashad,
I will focus my answer on the specific question you ask at the end of your message, being "successful in selling commercial real estate to start."

I do suppose that to some degree it depends on how exactly you define "success."  Assuming the general meaning of that term, I will say that there are a number of factors that you must be aware of, and set your strategy accordingly.

Because "commercial" RE has so many specific types of property involved, the first order of business would be to identify the specific property type you want to specialize in. Specialization is a successful strategy component because it allows you to focus on specific knowledge areas relevant to specific property types.

For instance, my specialty is Apartments. I learned all facets of the apartment industry and the nuances related to that specific property type. Financing, ownership, taxation, management, operation, maintenance, marketing, and investment norms, are only some of the areas in which one must have extensive knowledge in order to be "successful" in that particular commercial property type. While the "areas" identified may be the same, the information is quite different when the property type is say, commercial retail properties. The types of investors who buy these two different types of properties is also different, and their investment strategies are different.

In this brief statement it should be clear that "commercial RE" is a term for a very complex and diverse area of business. Specializing, and the wisdom of it, is therefore more apparent with the above having been learned.

Like any area of business, knowing all that you can about the "product" you are selling gives you an extreme advantage over your competitors that lack the level of knowledge that you have.

Picking a particular commercial property type to specialize in will usually be dictated by your general knowledge and experience, and the degree of complexity of work that you are inspired by. While all of the different types of commercial property are somewhat complex, some are more so than others. How you chose the specific type of commercial property you will specialize in, is by researching the general information regarding each type, (ie, industrial, multifamily, retail, etc.)and choosing that type which best suits your personality and background. Identifying this first, will be a significant help to you in your path to "success" in commercial real estate.

Once you have the specific area in which you will specialize identified, then there will be several other issues that determine your success as well. These tend to be the same regardless of the specialization. They are, honesty, punctuality, knowledge, creativity, attentiveness, and tenacity. These traits applied to marketing and networking skills, along with a general good sense for business, will as fundamentals, take you quite far.

Having direct access to the type of investors who trade in the type of property that you choose to specialize in, and growing and farming that group, is as well, a very critical element.

As a summary answer to your broad based question, I would strongly recommend that your very first step be to find and commit to a relationship with someone who is currently active, and already "successful", in the area that inspires you the most. Going into this, you must realize, that like all areas of endeavor, it is unreasonable to presume "overnight" success. It is a process of dedication and perseverance in your chosen field that gains you that.

I hope that this gives you a basic insight, and satisfactory answer to your question. If I can be of greater assistance to you, or you would like clarification on anything I have said here, please feel free to ask.

I wish you the greatest of luck, and will close in saying that in spite of what many are portraying as a financial doomsday, we are in the very best of times for huge success in the commercial real estate market. But remember that knowledge of what you are doing is imperative to success.