As more people enter into business, a huge demand for commercial properties is created. Building a career in the commercial real estate niche is therefore an exquisite idea. But just like any other venture, real estate brokers face their fair share of challenges. With a little faith and persistence, the rewards greatly outweigh the risks. Today, it’s easy to get commercial property around your specific location.
Here are the tips to starting a career in commercial real estate:
Solo or Agency
Your first decision is whether to go it alone as an entrepreneur, or join up with an existing agency. Setting up your own company has its challenges and rewards. It requires planning, capital, and extra resolve and hustle. There are many steps to consider.
Joining an existing agency gives you access to potential mentorship and business leads. The long term upside may not be as rewarding, but accelerating your presence in the industry and the experience gained will strengthen your career.
Evaluate your leads
It’s pretty scary to be the new kid in the block. You’re unsure of when you’ll land your first lead and score a good deal. This uncertainty will prompt you to work with anyone who asks. For instance, if someone randomly calls you enquiring about an office space he’d like to see, you’ll certainly be interested to hear more. He sells rare ornaments and desires around 2000 sq. ft. of space for his business, promising to pay the $400 monthly rent. But after going through thick and thin to get the desired space, your lead fails to sign the lease – he can barely afford the rent after all! Rather than facing such inconveniences, it’s better to vet your leads first.
Determine the properties you’ll focus on
The commercial real estate world is quite diverse. It includes any building or space that’s meant to be used to make money. This included hotels, restaurants, office spaces, strip malls and convenience stores. Going in, it’s important to define what properties you’d like to focus on. Also figure out the type of clients you want to rub shoulders with.
Be an outdoorsy, hands-on person
Rather than working behind the scenes, it’s better to develop an up-close and personal disposition. Don’t just call and write emails all day. Get out there and meet clients within your property precinct. You’ll get a great deal of information once you spark conversations with other people. However, remember to be direct and friendly when speaking to strangers – don’t beat around the bush. Make a resolution to speak with at least 6 people daily.
Conduct research and remain updated
The commercial real estate arena is rapidly changing each passing day. As a new broker, you’ll require to conduct a lot of research so you can remain a notch above everybody else. Focus your research on property trends, real estate demand curves and clients’ changing preferences. This will get you closer to bigger opportunities. You’ll also get to make more lucrative leads every so often.
Although it might be tough acquiring leads in the initial stages, don’t give up. Make at least 50 cold calls every single week, and don’t be afraid of hearing the word NO. Most people you call will probably express their disinterest about what you’re offering, so strive to hold a fun conversation instead. Talk about what your cold leads might be interested in: property values, leasing rates, office space options and the like. Build your email list and send your warm leads informative mails frequently.