Real Estate Agent · Riverside, CA · Member since 2016 · 9 posts · 6 votes
I'm looking to become a commercial real estate broker specializing in Industrial and Office, and am in need of some books that most comprehensively outline the life cycle of a commercial real estate deal. I've found one on Amazon:
The Lease Manual: A Practical Guide to Negotiating Office, Retail, and Industrial/Warehouse Leases, Second Edition by April Condon (Author), Rodney J. Dillman (Author)
Also, I've tried searching for a SIOR reading list, and found these three titles:
Confessions of a Commercial Real Estate Broker
The CFO's Guide to Understanding Corporate Real Estate Transactions
Go For Broker: An Executive's Guide to Hiring a Broker for Today's Complex Real Estate Deals
Are there any other books you would highly recommend?
Real Estate Agent · Columbus OH · Member since 2018 · 1k+ posts · 1k+ votes
2y
@Matthew Mendenhall welcome to the forums! While reading is always great I wanted to share the advise that I got early on in trying to break into commercial (not that I've been successful breaking into that category but I like to think I'm on the way). I was advised to find a small boutique broker in my market or in the asset I was interested in, ideally aging, and try to get in and add any value I can with them. its been slow going but man have I learned infinitely more than I would have just reading. So not to diminish the reading its always great, but if you can find an "apprentice" type work relationship with an experienced broker that can really catapult you off.
What's your runway looking like before learning all the details can you survive a year with no income and investing in your business with no commissions coming in?
What's your runway looking like before learning all the details can you survive a year with no income and investing in your business with no commissions coming in?
Yes, I'm giving myself 1 to 2 years of "incomeless" learning and setup of all tools, certifications, designations and processes.
Real Estate Agent · Columbus OH · Member since 2018 · 1k+ posts · 1k+ votes
2y
@Matthew Mendenhall welcome to the forums! While reading is always great I wanted to share the advise that I got early on in trying to break into commercial (not that I've been successful breaking into that category but I like to think I'm on the way). I was advised to find a small boutique broker in my market or in the asset I was interested in, ideally aging, and try to get in and add any value I can with them. its been slow going but man have I learned infinitely more than I would have just reading. So not to diminish the reading its always great, but if you can find an "apprentice" type work relationship with an experienced broker that can really catapult you off.
@Matthew Mendenhall welcome to the forums! While reading is always great I wanted to share the advise that I got early on in trying to break into commercial (not that I've been successful breaking into that category but I like to think I'm on the way). I was advised to find a small boutique broker in my market or in the asset I was interested in, ideally aging, and try to get in and add any value I can with them. its been slow going but man have I learned infinitely more than I would have just reading. So not to diminish the reading its always great, but if you can find an "apprentice" type work relationship with an experienced broker that can really catapult you off.
Thanks! I think that's great advice. My wife and I are looking to get into this together. Our financial advisor said it would be ideal if she does the apprentice type work with an experienced broker so we can learn the ropes.
Awesome! I will think of a couple titles but I would actually go outside of the mechanics of CRE and focus more on prospecting and sales or you will just be a really great analyst working for a producer.
Investor · Miami Beach, FL · Member since 2017 · 362 posts · 109 votes
2y
Hi Matthew, I wrote a book that will not only help you with real estate the book is also about the importance of being healthy title ''Healthy Rich and Happy'' you could dm me for infor. I'm happy to share.
Awesome! I will think of a couple titles but I would actually go outside of the mechanics of CRE and focus more on prospecting and sales or you will just be a really great analyst working for a producer.
Morning Jonathan, I do have a lot of sales experience and resources. However, I am willing to be a good student and learn something new there as well. Any help there would also be greatly appreciated!
Hi Matthew, I wrote a book that will not only help you with real estate the book is also about the importance of being healthy title ''Healthy Rich and Happy'' you could dm me for infor. I'm happy to share.
Morning Jacopo, and thanks! Just sent you a request.
Cincinnati, OH · Member since 2020 · 4k+ posts · 3k+ votes
2y
@Matthew Mendenhall, it sounds like you want to be a leasing broker versus investment sales.
Like Michael noted, I would be reaching out the major brokerage houses and trying to find a role on their office or industrial teams. The brokerage business is very much a relationship business. So while there are independent groups out there, I would venture that most deals are being done through the big houses: CBRE, Cushman, Colliers, etc.
One avenue I would take is reaching out to these brokers and invite them to coffee stating you are looking to get into and learn the business, and would love to learn how they got started.
@Matthew Mendenhall, it sounds like you want to be a leasing broker versus investment sales.
Like Michael noted, I would be reaching out the major brokerage houses and trying to find a role on their office or industrial teams. The brokerage business is very much a relationship business. So while there are independent groups out there, I would venture that most deals are being done through the big houses: CBRE, Cushman, Colliers, etc.
One avenue I would take is reaching out to these brokers and invite them to coffee stating you are looking to get into and learn the business, and would love to learn how they got started.
Thanks so much for the tips!
From what I understand, a large sales volume is due to:
1. The size/presence of the broker house (top five, etc). 2. The individual broker is well known and trusted. 3. The broker follows a proven system from prospect to close.
Which one would you say is the main factor of those three? And might there be more (important) factors that contribute to large volume or top producer sales?
Developer · Member since 2020 · 4k+ posts · 4k+ votes
2y
I will add from the non-book side some areas to learn:
1. Zoning map
2. Planned zoning map
3. Zoning matrix
4. Learn by zoning the attributes- setbacks, special use or Conditional use potential, learn the processes,
5. EPA phase studies
6. Financing
7. Look on Loopnet and Crexi for your area. Learn about all of the properties. Do deal analysis on all of them.
8. Build a commercial team- insurance, financing, Planning/Zoning, fire inspector, trades- electrician, plumber, carpenter, excavation, concrete, hvac, flooring, engineers, signage, etc. Develop both relationships and lists of your "guys".
9. Storm Sewers and storm pond retention
10. Property taxes
11. If you're with a firm, go back through the last 3 years of Commercial close files.
12. Define your market and type of asset.
13. Join groups- chamber of commerce, real estate groups,
14. Property Tax GIS system. Make a list of all properties past due or always late paying. Start approaching them. Make a call list by type of property.
15. Learn Railroad properties in your area. Look for vacant properties. They will usually sell them, even though not listed. They will not sell to any residential use, so good for most Commercial.
16. Learn about fire suppression systems, door heights/widths, ADA, sidewalk parking, hvac, etc.
Real Estate Broker · Phoenix, AZ · Member since 2019 · 165 posts · 100 votes
2y
@Matthew Mendenhall I personally love the approach that @Henry Clark laid out for you. I got my start in commercial real as a commercial property manager 20 years ago for my grandfathers small development business. This provided insights that reading books never did, along with a steady pay check and effectively a paid internship. I got mentorship as a result. Yes, reading is great to learn about specific technics, but hands-on application when running alongside guys that are doing it day in and day out is far superior. If possible, I would recommend finding a position at one of the major commercial brokerages nearby you, or at a boutique if necessary, that does high volume and guys are frequently doing deals. Spend one year doing that and you'll have a wealth of knowledge to apply in your own business. CCIM and SIOR are good options, but they require a level of portfolio requirements to receive the designations that you won't have until you get immersed in the business yourself.
Ultimately, what you need more than knowledge to succeed in this this business, is the willingness to have hundreds of conversations weekly with people you don't already know, and to do that every week for the rest of your career. The larger the database of business owners and investors you make, the better success you will have. Good luck and send me a connection request if you want to discuss this more.