How Are Commercial Contracts Executed?

[Justin Watts]

Hey all, so here's my situation.

I'm a fairly new real estate salesperson (coming up on a year in the industry), and things are just starting to pick up for me.  I'm currently nurturing a pipeline of 8-10 solid leads, one of which is an investor interested in multifamily & retail opportunities.

I've asked my teammates, team leader, and broker how to go about writing a commercial offer.  They've all told me to refer the deal to one of the commercial agents under our brokerage, but none of them told me "No, you can't represent a commercial deal."

I've done a decent amount of research, and I can't find any source that says I need a special certification or designation to sell commercial real estate.  I understand that I'm a fairly new agent, but I'm tired of playing follow-the-leader.  This was my lead from the start, and I want to step into the commercial world.  This may be my only shot for years to come.

So... That begs the question.  Where can I familiarize myself with how commercial contracts work?  From my research, it seems there is a longer inspection/contingency period, but is there anything inherently different compared to a residential contract?  How do negotiations differ?

Is the CCIM Designation the gold standard for stepping into commercial deals?  Those classes seem more tailored to investors, rather than agents, but the "Negotiations Training" course seems like it may be the first logical step.

Thank you to any and everyone willing to help out.  Happy 4th of July!

[Greg Dickerson]

Originally posted by @Justin Watts:

Hey all, so here's my situation.

I'm a fairly new real estate salesperson (coming up on a year in the industry), and things are just starting to pick up for me.  I'm currently nurturing a pipeline of 8-10 solid leads, one of which is an investor interested in multifamily & retail opportunities.

I've asked my teammates, team leader, and broker how to go about writing a commercial offer.  They've all told me to refer the deal to one of the commercial agents under our brokerage, but none of them told me "No, you can't represent a commercial deal."

I've done a decent amount of research, and I can't find any source that says I need a special certification or designation to sell commercial real estate.  I understand that I'm a fairly new agent, but I'm tired of playing follow-the-leader.  This was my lead from the start, and I want to step into the commercial world.  This may be my only shot for years to come.

So... That begs the question.  Where can I familiarize myself with how commercial contracts work?  From my research, it seems there is a longer inspection/contingency period, but is there anything inherently different compared to a residential contract?  How do negotiations differ?

Is the CCIM Designation the gold standard for stepping into commercial deals?  Those classes seem more tailored to investors, rather than agents, but the "Negotiations Training" course seems like it may be the first logical step.

Thank you to any and everyone willing to help out.  Happy 4th of July!

Commercial is a very different animal than residential. Typically you start with an LOI and then the attorneys draft the actual contracts. The entire due diligence process is different for the different types of properties and your lack of expertise can get you into big trouble fast if you advise a client incorrectly. If this is your first commercial transaction you should offer to partner with an experienced commercial agent to walk you through the process or hire a commercial real estate attorney to advise you.

As for the CCIM designation that is more for agents than investors although some investors do take some of the courses and some agents are also investors but the designation is primarily sought after by agents.