How Does a 22 Year Old Add Value for a Big Shot CRE Broker?

Question

Hello all,

I feel as though I'm in a pretty good position. I interned for a small but rapidly growing Commercial Real Estate Firm last summer and one of, if not the top broker at the company has asked me to work under him upon my return from a 6 month stint in Melbourne, Australia.

Generally, 3 years as a property manager is a prerequisite for a broker at this firm, so I feel blessed to have such an opportunity.

However, my internship didn't teach me much about how to be a broker in commercial real estate, and I don't want to drag this guy down more than I manage to contribute.

Here's what I've got so far:

--Cold Calling --> I cold call now in Australia, so I'm getting some good practice and should be motivated to get after it again when I get back to the states.

--Start a Blog --> I've stared a blog to firstly provide valuable content for other cre professionals, but also to build my presence and document my path starting from scratch in the world of commercial real estate.

--Learn when I can --> I listen to podcasts on the train every morning and evening. I listen to a lot, and am excited that I've finally found Bigger Pockets!

--Read --> I don't like reading fiction. Sorry I'm not sorry to the Harry Potter tribe, but I'd rather spend my time reading relevant news articles, business books, forums posts, etc.

--Network --> As I'm doing with this post, I'm reaching out to anyone and everyone in an attempt to connect with others like me, and especially experienced pros. With that being said, please send me a colleague request and a short message!

So what do you think? What else should I be doing now, and what should I expect to be doing when I start in December?

Michael Morris · Answer

@Michaela G. Great advice on paying attention to the methods here in Australia. I've been picking up on some forms of advertising that are much different than in the States, and will be sure to pick and choose which ones I believe will be successful.

@Brad M. The broker's main focus is retail, but he works on investment sales as well, which I believe is where my passion is, but time will tell. I figure I'll be open to anything until I get some real experience.

Good point on time, you can always be more efficient with your time, especially when you've been in the business for so long, as this broker has. He has been a top producer at the firm for a number of years, so I'll be sure to make sure his time is well spent on generating business rather than administrative or non-generating activities. Thanks!

Brad M. · Answer

@Michael Morris You beat me to it with the CCIM education. That is where you should start given your interest in the finance aspect of CRE. @Marcus Curtis is also correct that we have a great IREM presence in VA, and if you go the PM route that is an organization you need to get involved with.

The broker that you would be working with...what is his/her focus? Regardless, at the very least you will want to save them time if you want to add value. Anything that you can do to allow them the time to pursue new business, you should do. Put together marketing packages, do the property research, cold call, follow up on leads, set up appointments...you get the idea.

I'm with a large CRE firm in Richmond, and if you want to message me would be happy to talk to you offline in more detail.

Michaela G. · Answer

I think your mindset is what's giving you this opportunity. It's sort of like 'ask not what your country can do for you, but what you can do for your country..'

That is also the right mindset for negotiation. Some people negotiate to squeeze the last penny out of a deal for themselves, because they see the other person in a desperate place. But I think the person that puts themselves into the other person's shoes and finds a way to give them what they need (maybe not what they want), while figuring out a good deal for themselves, is the one that will do best in the long run.

I think you might also look at your industry in Australia. Often times there are things done differently in another country, that would do well to get introduced in the U.S. You just never know.

Good luck

Michael Morris · Answer

Martin,

Thank you so much for that. Giving me a couple steps to take is exactly what I was looking for. I've been looking into getting my CCIM designation and will be sure to check out the IREM info. If you could send along details for that I'd really appreciate it.

Otherwise, I'm pretty analytical and am ready for RE Finance to become a second nature. I'll be sure to start exploring further education in the field. Again, really appreciate the advice

Marcus Curtis · Answer

It sounds like you have a great opportunity in front of you and that your mindset is in the right place when you ask, "How can I add value?" Essentially, this is what your career will consist of adding and preserving value to people, assets and your brokerage team as a whole.

The one recommendation I will make to you is to focus on your education. The on-the-job experience you will gain as a Property Manager in a commercial brokerage is invaluable but you will unlikely gain the knowledge you will need to become a key player in the Senior Management team with out a sound knowledge of Real Estate Finance and other related facets.

You should be able to be woken out of the dead of sleep and complete a Proforma Statement in under two minutes, calculate IRR, Cash-on-Cash, Valuation and know the difference between a Net Lease, Double Net Lease and Triple Net Lease.

While you can listen to Podcasts, read blogs and learn a vast amount of knowledge from the people here at BP you will need an education from industry leading educational organizations.

Virginia has a great IREM Chapter (Institute of Real Estate Management). When you reconnect with your Broker ask them to put you through the CPM (Certified Portfolio Manager) program. The FIN402, ASM603-605 Courses are invaluable to any real estate professional.

Aside from the educational experience you will receive through this you will also have endless opportunities to Network with other industry professionals which is the cornerstone to your success. You will be surprised by how often your Broker contacts other proffesionals in the industry to solve problems.

Let me know if you would like to talk to someone regarding IREM. I will get you in touch with your local chapter.

Best of Luck to you!