Becoming a Commercial RE Agent

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Becoming a Commercial RE Agent

Lilian Chen
Investor · Long Beach, CA · Member since 2018 · 11 posts · 8 votes
Hi everyone, I juat graduated from college and currently have a full time job in commercial real estate fInance. I am trying to save up for a down payment and am thinking of becoming an agent on weekends. I felt that my quantitative background can give me a great advantage because I probably spend more time on excel analysing and building models than most agents out there. From my full time job, I’m also staying on top of developments in the neighborhood, since I live where my company is at and invests in. However, the two biggest worries is that I simply may not have enough time for being an agent. I usually get off work 7-7:30 PM, which is probably too late for any showings or prospecting. The other issue is I simply don’t have a car, and am hesitant to get one because it’s a big cost even if I get an old car. My questions are: 1. How can I become a commercial agent, and how is it different from becoming a residential agent? 2. Do I even have enough time to do this well - being responsible, making calls outside of work, etc. I don’t want to do this half heartedly. 3. Do I need a car, or could I possibly bike? Thank you so much in advance!
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Christopher Phillips
Real Estate Agent · Garden City, NY · Member since 2016 · 3k+ posts · 1k+ votes
8y

@Lilian Chen

Interesting question. 

Here are some thoughts...

Commercial is a little different form residential. You're not showing properties all hours of the day. So, you can manage around your schedule.

Most of what you'll be doing is building relationships. It will also depend on if you do residential commercial like apartment buildings vs. retail space (warehouses, plazas, gas stations). Most people tend to specialize. I know a few people that only do gas stations. 

Most people do not start in commercial. It can take a long time to get your first sale if you don't know someone personally that is looking to do business right away.

You can still sell houses as well. Every person that is looking to buy or sell commercial property is usually doing something with their personal property as well.

I'll give an example of how it can work. I know an agent that started and had a friend that wanted to sell his bar. So, that was his first listing. It sold pretty quickly.

So, make friends with business owners. Or start ups looking to lease space or buy.

Other ways to do it, shop and eat in the same places. Make friendly with the owners. "How's business?" Let them know if you can ever help them in anyway. If they are looking to sell or looking to expand, you'll be the go-to person.

Listings also expire. So, you can call expired listings and see if they still want to sell.

Sometimes, owners will go the for sale by owner route. You can call them too.

Longer play, some national companies are always on the lookout for space. They usually have website pages dedicated to what they are looking for and how to submit potential property locations. As an example, Starbucks and 7 Eleven like very particular types of spaces. So, if you spot something, you can submit that to their corporate real estate department.

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  • Christopher Phillips
    Real Estate Agent · Garden City, NY · Member since 2016 · 3k+ posts · 1k+ votes
    8y

    @Lilian Chen

    Interesting question. 

    Here are some thoughts...

    Commercial is a little different form residential. You're not showing properties all hours of the day. So, you can manage around your schedule.

    Most of what you'll be doing is building relationships. It will also depend on if you do residential commercial like apartment buildings vs. retail space (warehouses, plazas, gas stations). Most people tend to specialize. I know a few people that only do gas stations. 

    Most people do not start in commercial. It can take a long time to get your first sale if you don't know someone personally that is looking to do business right away.

    You can still sell houses as well. Every person that is looking to buy or sell commercial property is usually doing something with their personal property as well.

    I'll give an example of how it can work. I know an agent that started and had a friend that wanted to sell his bar. So, that was his first listing. It sold pretty quickly.

    So, make friends with business owners. Or start ups looking to lease space or buy.

    Other ways to do it, shop and eat in the same places. Make friendly with the owners. "How's business?" Let them know if you can ever help them in anyway. If they are looking to sell or looking to expand, you'll be the go-to person.

    Listings also expire. So, you can call expired listings and see if they still want to sell.

    Sometimes, owners will go the for sale by owner route. You can call them too.

    Longer play, some national companies are always on the lookout for space. They usually have website pages dedicated to what they are looking for and how to submit potential property locations. As an example, Starbucks and 7 Eleven like very particular types of spaces. So, if you spot something, you can submit that to their corporate real estate department.

    3Reply
  • Rodolfo Canon
    Commercial Real Estate Agent · Denver, CO · Member since 2018 · 109 posts · 81 votes
    8y

    Lilian,

    I started in residential real estate in 2006. In 2008, I began offering fix and flip seminars in various neighborhoods in Denver. This led to working with attendees to find, fix and flip over 65 properties. Those investors then asked me to help them find development deals: "Build and sell a duplex, then build and sell six townhomes..." Over the last three years I have done over $67 million in deals by myself with those investors and others that I have met through my network of contacts. From 2008 until 2012 I ate a lot of ramen and beans and rice because that was all I could afford. 

    My advice:

    1.Write your business plan. It is not a inflexible document. It changes as you change and as the market opportunities change.

    2. Save every penny you can. Determine how long it will take to save enough to make that first down payment. Then buy the first one. Make sure it is a positive cash flow asset.

    3. Build your network. Read the book "Linked" to gain an understanding of network theory. Network theory is a real science with rules and principles that you should follow. You want to become a hub in a network in which you provide value to your nodes, your strong links. Those strong links will bring you weak links. Those weak links are where you will find real value.

    4. Your reputation will determine your success. My first priority is to ensure that my investors, network partners, and suppliers get real value from interacting with me. I help them achieve their objectives, even if I don't get paid. Hard work, integrity, and results will take you a long way.

    5. I never found cold calling to be productive. I value every contact I make anywhere. I just finished a small office deal as a result of meeting a guy at a street fair. You never know when that pumpkin will turn into a beautiful carriage. 

    2Reply
  • Hai Loc
    Specialist · Toronto, Ontario · Member since 2012 · 2k+ posts · 891 votes
    8y

    No car.. don't bother.. unless you become a commercial agent that works in a certain sector with a large firm in a large urban area where you can manage walking or taking efficient public transit..  I wouldn't suggest you becoming independent without a car. 

    1Reply
  • Lilian Chen
    OP
    Investor · Long Beach, CA · Member since 2018 · 11 posts · 8 votes
    8y
    @Christopher Phillips Wow, these are some amazing and practical advice! It seems like the bulk of being a commercial agent is networking, probably even more so than residential. Definitely good for me to think about whether or not these are things I want to be doing in my spare time. Really appreciate it.
    1Reply
  • Lilian Chen
    OP
    Investor · Long Beach, CA · Member since 2018 · 11 posts · 8 votes
    8y
    @Rodolfo Canon I love and am inspired by your story. It seems that by finding a way to give back through teaching, you ended up gaining much more. Thanks for the great advice as well. I just ordered Linked and will start to work on my business plan. I care about relationships a lot and I’m very excited to read the book - thanks for the recommendation!
    0Reply
  • Lilian Chen
    OP
    Investor · Long Beach, CA · Member since 2018 · 11 posts · 8 votes
    8y
    @Hai Loc Thanks Hai for the reality check. Makes complete sense. I’ll need to figure out if this would be the deal breaker.
    0Reply
  • Daniel Kurkowski
    Real Estate Broker · Minneapolis, MN · Member since 2015 · 109 posts · 125 votes
    8y

    In my opinion it is a competitive enough business that it isn't really worth pursuing unless you can do it full time. What do you really want to do: What you are doing now or selling CRE?

    If you want to be an agent and you find a good mentor, follow their advice and work hard (sounds like you are already doing that) you will be successful.  You don't need extraordinary talent or a super high IQ to pull it off (though I am sure you have both).  There are just a few puzzle pieces that need be assembled.

    Analytics are a big part of the game, particularly while working with investors, but at most, that will be half of your job as an agent with the other half being prospecting.  If you are willing to push your comfort zone and check all the boxes above, the upside can be enormous.  

    If you do it, go all in.  If you love your job, spend the time you would have as an agent improving yourself there instead and you can roll this world.

    2Reply
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