New to Commercial Real Estate?

Posted: June 29, 2017 by Paul Cohen, Regional Director


New to Commercial Real Estate?

Read these 10 books and accelerate your career

It started in the 1990’s and is becoming more and more pervasive.  I’m talking about the new wave of brokers and their shocking lack of reading.

I noticed it first when junior brokers in my firm would start using basic phrases that every salesperson from the pre-nineties era, who had studied the likes of Tom Hopkins, Zig Ziglar and Jim Rohn, would never say. Like “You wouldn’t want to make an offer on this property, would you?” I’d cringe and then take them aside, thrusting a copy of Tom Hopkins “How to Master the Art of Selling” into their hands. Months later it was clear they hadn’t read it. I once wrote on the second chapter of “See You at the Top” by Zig Ziglar, “When you read this, come and see me and I’ll give you $100.” They never asked for the money but did tell me they enjoyed the book.

I have given this some thought over the years. Why do these gen-Xrs think they can just wing it? I’ve watched these brokers “grow up” in the business and they make money based upon sheer determination, smiles and their ability to instinctively connect with some clients. However, because they don’t know why they do what they do, they sometimes don’t get the business and have no idea why. Generally, they blame the client, the market or a competitor but the fact is, it’s them. I explain that sales in commercial real estate is a skill that needs to be honed and practiced. Just willing something to happen doesn’t make it so. Learning to build rapport, ask questions, growing a business over time are fundamentals that seem to be missing from the “instant gratification” generation. Don’t get me wrong, I love the optimism and over confidence but a little nuance goes a along way.

If you don’t like to read, you can download an audio book as I like to do. Check out our blog debating the reading vs listening to books. Without further ado here are the ten books I recommend every aspiring commercial real estate broker should read:

    1. How to Win Friends and Influence People, Dale Carnegie. Warren Buffet took the course and said it was the best thing he could have done for himself when he started out.

    1. The Richest Man in Babylon, George Clason. Time tested principals for gaining wealth.

    1. Think and Grow Rich, Napoleon Hill. Time tested wisdom from a man who studied the likes of Andrew Carnegie.

    1. How to Master the Art of Selling and Listing Real Estate, Tom Hopkins. It’s a little dated but you’ll learn some good basic techniques.

    1. The Secrets of Closing the Sale, Zig Ziglar. In my opinion, this is best as an audio book.  Zig’s enthusiasm will get you pumped.

    1. The Psychology of Selling, Brian Tracy. More sales stuff. You’ve got to absorb this stuff as Brian Tracy breaks down the mind game.

    1. Seven Habits of Highly effective People, Steven Covey.  Probably the best overview of how you set yourself up to be successful in life

    1. Influence, Robert Caldini. Important if you want to understand why people decide to buy.

    1. Spin Selling, Neil Rackham. It seems that every major sales organization rebrands the principals of this book for their own purposes. Get the original.

  1. Success Through A Positive Mental Attitude, Napoleon Hill & W. Clement Stone. This was quoted in the Ray Kroc movie (Founder). As the words were recited it reminded me of when I started in the business. This stuff stays with you.

“Hey new broker. Yes I am talking to you.”

I know you think that because you are well liked and you work hard, you don’t need to read these books. Trust me, I’ve worked with hundreds of brokers over the years, and they all make money. However, the ones that learned these principals make much more.  Even if you make just 10% more each year, that’s almost a million dollars over a career. (That’s a Brian Tracy thing. You’ll see.) Now this is just the start, there are hundreds of books you should read. Some haven’t even been written yet. I personally recommend biographies – Sam Zell has a new one out now. Enjoy!

What book do you recommend for new brokers? Send me your recommendations.


Paul Cohen

Paul Cohen, CREXi Convenient TechnologyPaul Cohen is a Regional Director with CREXi based in the firm’s Miami office and focused on business development in the southeast. Prior to joining CREXi, Cohen was a Managing Director specializing in investment sales and equity raises at Cohen Financial, a national debt and equity advisor. Prior to Cohen Financial, Paul owned and operated his own independent real estate firm following a 12-year tenure at CBRE where Cohen was a Senior Vice President and led the Private Client Group in Miami-Dade County with a specialty in office and industrial investment sales.  Email Paul

 

Short & Sweet With No Fluff

Posted: January 4, 2017 by Eli Randel, Director of Business Development

SHORT & SWEET WITH NO FLUFF

No, that is not my order at Starbuck’s or my match.com header, this week’s blog is meant to be short, sweet, and sans any company fluff about why you should visit us at CREXi.com (although you should).

Having grown up and spent my whole career in the commercial real estate industry, I wanted to share some concise thoughts on why I love the industry and asset class:

  1. Low individual barriers to entry. Real estate investing requires no formal education or licensing requirements and while some areas of the business can be incredibly sophisticated, many concepts are very simplistic and intuitive. The result is a colorful and entrepreneurial culture full of unique personalities and personal stories.
  1. Diverse skill sets. Within one day you can exercise your finance chops and underwrite a complicated deal, exercise your marketing muscle and promote your newest project, or put your salesman hat on to win a new tenant. There are a broad set of skills which drive the industry;
  1. Instinct and intuition. While there are many sophisticated nuances, many of the concepts in CRE are intuitive. We all live somewhere. We all shop somewhere. These are not foreign concepts. Recognize that there aren’t enough apartments for rent in your area? Buy or develop an apartment building to capitalize.
  1. Control. Some of us don’t like the idea that unless we are an activist investor we can’t control the value of our equities investments (stocks). Further, the value is at the mercy of someone else’s control. What if the CEO gets caught in a scandal or retires sooner than thought? Most CRE professionals can still directly (attempt to) add-value to their investment or business.
  1. Real estate is a hard asset. Some people (myself included) don’t have the wiring to blindly trust an investment that can only be seen as numbers on a computer screen. Real estate is a real tangible asset you can drive by and touch.
  1. They aren’t making any more of it. I hesitated to include this as I believe this idea can sometimes be a trap. This notion does not mean values always rise and I think it’s underestimated how much untouched land there is. Additionally, technology has blurred the lines of physical and virtual space. However, the fact remains, the population continues to grow while land availability continues to decrease.
  1. Use of debt. Real estate is financeable whereas financing bonds or equities investments is a tricky business. Debt allows investors to lever returns, do more with less, and creates other industry opportunities (lender, servicer, appraiser).
  1. Other people’s money. The use of other people’s money (OPM) is an important component of the industry. Friends and family or institutional capital investors are always looking for avenues where they can find returns and are willing to pay fees and promoted interests to those who can access those investments. This allows investors to further lever returns and/or play in a greater arena than they otherwise could.
  1. It’s fun. For the restless like myself, it’s an industry that often revolves around meetings, looking at properties, driving, or getting a drink with other professionals. It’s a people industry that often puts you on the move as opposed to chained to your desk.

Tell me what I missed or share your thoughts @ eli@crexi.com or 305.331.2881.

Eli Randel

Eli Randel, CREXi Director of Business Development

Eli Randel is Director of Business Development based in CREXi’s Miami office. Eli spearheads CREXi’s growth and sales throughout the east coast as well as overseeing the national sales team. Prior to joining CREXi, Eli was director of dispositions for Blackstone’s Invitation Homes. Eli has also held management positions and production roles with Cohen Financial, Auction.com, LNR and CBRE where he began his career spending three years in Investment Sales before leaving to obtain his Master in Business Administration from the University of Florida.