Realtors Wanting to get into Commercial Real Estate:

Over the past couple of years, there have been several organizations encouraging residential realtors to learn commercial real estate.  I always applaud getting educated in areas that will both benefit yourself and your clients.  Now, commercial real estate can be a tricky business.  I believe it is fair to say there are some significant barriers to entry.  However, that does not mean you should not get educated.

First, I ask that, if you are new to CRE, then please put your clients needs ahead of your own for a variety of reasons.  They are looking to you to guide them and protect them; and, if you do not know what you are doing, then you are doing a disservice to them.  That is a great way to hurt a client, hurt your referrals, and possibly get you involved in a lawsuit.

With that said, if you have a client in need of CRE help, then find someone to partner with that knows what they are doing.  Make sure it is the type of person best suited to assist your client.  Again, if you make the right connection, then this can lead to future business with other clients wanting such assistance.

Now most CRE professionals will not want to spend their time training you.  Thinking about it a bit, why would they want to teach you the business.?  In effect, you would be asking them to help you compete with them.  In a perfect world, it would be great if you found a knowledgeable broker that has the right skills; and who is willing to take you under their wings.  Some of those types exist in the residential-commercial world (often referred to as resimercial types).

Figure out what you can bring to the table from a skills perspective.  I know of one gentleman that fits the above description.  He would benefit greatly from partnering with someone who can solve some of his challenges with technology.

Look for commercial types that have problems you can solve easily.  Create rapport so that a partnership will benefit both of you.

To get further educated in the business, look to courses offered by your local Board of Realtors.  Do some homework on the courses offered to see which ones match what you are seeking.  Note that not all approaches are the same.

In addition, you can look to CCIM and/or CBA  to gain education.  There are several online options out there as well.

Learning the business is not easy.  Typically, a client forces your hand with a need.  You can partner or you can position yourself to receive a referral fee.  If you find your client database is providing you more and more commercial opportunities, then I suggest you look into finding that partner where you both will benefit as described above.

As always, I am happy to provide some guidance along the way.

​Investments Opportunities for Purchase with Strong Cash Flow:

Back on the January 15^th update, I wrote about “Creating Residential Listings Using Commercial Opportunities.”  Each week,  I am presenting some of those investment opportunities to better educate all on what is actually available.  Note that these are all Single Tenant Net Leased properties that have listed in about the last 10 days.  In addition, I assumed a 5.25% loan with 50% down.  This is just a small sample of what is actually available.

If you assume investors in the Bay Area are getting a cash flow of 3.5%, then you can see the potential improvement with these properties above.  This approach is great for the investors desiring increased cash flow, an opportunity to get out of daily property management, and/or taking the challenges of rent control off the table.  Should you wish to discuss any of these or others, then give me a call.