Oh, you forgot to include the government route, particularly with a Federal government agency like GSA, they have a real estate division that does the management, leasing, and selling of government-owned real estate. HUD Housing and Urban Development is another avenue for commercial residential multi-family. Now working with HUD and the GSA will limit you to a salary but it's a good strategy for building your network and you can earn while you learn. State and local municipalities have opportunities also in the affordable housing niche market. You might not get a chance to work deals for other asset classes like retail and industrial but this still may be a great start. JMO
Great video. As someone who was well connected to a lot of people in the cre world in Texas, what you said is good advice and exactly what I did to get into the larger firms. My advice would be to start at a larger firm if possible because there is not enough training that goes on at alot of the the smaller firms and then if you want to go the boutique route later down the road, you will be prepared to do so. But again I understand this is not the case for everyone.
That's some great advice as well Nick! There is something to be said about joining a larger firm to learn the ropes. Many larger brokerages will have systems, training programs, and support staff that aren't present at boutique brokerages. I appreciate you sharing your insights!
Thank you for this video. I am a new agent in south Florida and extremely interested in commercial. I come from a city planning and zoning background and commercial real estate has always been something that I wanted to do.
That's an awesome background! I'm sure that experience will help you as you deal with clients looking to acquire commercial properties. It's a great industry and one that's ripe with opportunity for those willing to put in the work.
Honestly, one the best videos with great advice that is actionable. I am a Miami Native and Registered Nurse that got into residential RE in 2018 and full time in 2020 and have taken a break from nursing since then. I just moved to Huntsville and am looking to get into CRE. I just became a member of CCIM and NALCOM and taking my first CCIM this month. Looking into joining the chamber of commerce for this area as well as ULI. Hope to get into a brokerage soon
I’m a luxury real estate agent in Long Island ny I’ve done a few deals on the commercial side and to be honest I kinda wish i would do more commercial then residential I seriously can’t stand the people in residential the agents and brokers in residential are sometimes idiots and unprofessional I find commercial more professional and more on point
Hello! I can't comment on the residential side as I have never really operated in the space. However, I do love commercials so, if you're wanted to do more, you should consider affiliating with a brokerage that focuses on it. It's the best way to make sure more commercial deals come your way. Hope this helps.
Today I started the process of leanring about Commercial. This is the first video I have watched. I like the breakdown between Botique and Big Box company's. Good stuff! Great idea to network with who you know to pick their brains!!
Great share Pamela! Yes, commercial real estate is a relationship business. Dedicating yourself to continue to expand your network will pay huge dividends over time.
Thank you for explaining it so well in such a brief short video. I had to like and subscribe right away😉 I'll be renewing my Re lic soon in S. Cal and really have the Full desire to get into CRE right away!
That's great Jawad! I'm glad you gained value from the video. I would recommend checking out Rod Santomassimo's book "Knowing Isn't Doing". It's a great book about how to effectively structure your business for maximum success long-term.
I want so badly to get into commercial real estate . The degrees I’ve chosen are business administration associates combined with real estate finance and development bachelors . Is this impressive enough to brake into real estate once I’m done . I haven’t started college yet not till the fall . All my education is free nothing I’m paying . Hoping I wisely use this opportunity for advancement in life . Am I making a smart move toward commercial real state with these degrees ?
Hey Collin! Glad the video was helpful! Networking is critical to long-term success in commercial real estate. In fact, I'm currently in NYC attending a real estate conference so I'm constantly attempting to expand my network and knowledge. Keep up the great work and feel free to reach out if you ever have any questions. 💪
Hey Raphael, Thanks for the great advice! I am totally new to the idea of real estate and wondering if brokerages pay their agents some type of a base salary along with commission?
That's a great question Joe! Typically, brokerages do not offer a base salary to agents. Many are commission-only positions. However, some brokerages do offer something called a "draw". This is where they pay you a low base salary (i.e. 20k-30k) and you have to pay the brokerage back that salary with commissions you generate. I was on a draw during my first 15 months in brokerage and once I paid off the draw, I went 100% commission. Hope this helps.
Thats great! I would probably recommend looking at a high performing boutique brokerage that operates within several property type verticals. In most instances, you will be able to work on whatever deals you procure. Therefore, you’ll start to get an understanding of the types of properties you enjoy working with.
1. How does one find the highest producing brokerages in their area/region? 2. Im a junior in college studying business management. Is this sufficient for starting a career in brokerage? I know many recommend finance but is that necessary?
Hey Jordan! Great questions. To find the highest performing brokerages, I suggest reviewing the “Business First” publication in your area as they usually have a list of the top brokerages by volume. As for your degree, there are no prerequisites for getting into the business. I have an engineering degree and never took a finance class. Success in the industry has more to do with hustle and a willingness to learn. If you have these qualities, you will be extremely successful long term.
I just signed on with century21 and they also do commercial but nobody in my office is focused on it. I'm just trying to study and learn as much about commercial as I can. Maybe I can just try to work some deals on my own.
Great video. I went from resi brokerage to a principal/buyside role in CRE and overall commercial is just more interesting. I'm considering getting another license in a state we're purchasing property in. On top of the acquisition fee I get from sourcing/underwriting deals, I'm wondering if I can be an exclusive buyer broker to get part of the commission too. Have you witnessed other buyer brokers exclusively representing principals this way? Curious on what your thoughts are with this...
Great question Kenji! I have seen arrangements whereby principals sign exclusive buyer rep agreements with a broker for all their real estate needs. I'm currently the exclusive buyer-rep for a small local car wash group. However, this often happens at a smaller scale. The big time operators tend to not want to be tied down to having just one broker source opportunities for them. They're more likely to develop relationships with many high-performing brokers to increase the deal flow they receive. Having said that, it does not mean it can't be done. You won't know until you ask. Hope that helps my friend!
Thanks for posting. I'm working on an exit strategy from the military in the next 3-5 years. What is the top real estate reading material you would recommend? Books, magazines?
Thanks for commenting Jared! I hope you gained value from the video. As for materials I would recommend, I would encourage you to read all of Rod Santomassimo's books, especially "Knowing Isn't Doing". Great resources for agents of all experience levels. For investing, there are several books I would recommend including "Making it in Real Estate", "Peebles Principles" and "Confessions of a Real Estate Entrepreneur". I hope this helps.
Great info! I found the part about choosing the right cultural fit helpful in narrowing down my list, as well as team vs solo personalities. Is joining NAR member brokerage essential as a new agent, or can I avoid this expense at a boutique brokerage?
That's a great question. I don't believe you have to be a member of NAR to operate a real estate agent. However, I'm not sure how that affects your ability to access your Local MLS. I'm a member of NAR, even though I don't operate in the residential space. Would be a question that's worth researching.
@@RaphaelCollazo You have to join, if your brokerage is a member (and to call yourself a 'Realtor') otherwise, it's optional. Curious if you've found NAR useful, as far as networking & sales training?
Hey Keenan! Yes, that is a common statement that I hear from many people. I think it really comes down to getting with a brokerage who specializes in Commercial Real Estate. Residential brokerages may have one or two agents who dabble in commercial but there typically is not enough volume going through the office to get the reps you need to become proficient in the space. I hope this helps.
That's a great question! I think you will have to run that by your employer. I'm. not sure if you have a no-compete clause in your contract or if your employer would be OK with this arrangement. If they are, it sounds like a great idea!
Hello! That's a great question. I define a boutique brokerage as one that is only local or has a smaller regional footprint. I'm part of a boutique brokerage that has only one office here in Louisville. The big brokerages are ones like CBRE, JLL, Cushman & Wakefield, Marcus & Millichap etc.
That's a great question! Unfortunately, the answer is "it depends". Early on in your career, you will likely make very little. My first year, I made roughly $13,000. However, if you're consistent in your outreach and branding, you will eventually grow your business to make much more. CRE professionals who have performed at a high level for many years consistently make over 6 figures, some even make 7 figures. However, the early years are a grind and you will need to be mentally prepared for the challenge. I believe this a phenomenal profession and I'm confident that if you're committed and passionate about helping your clients succeed, you will do great in the long run. Hope this helps.
Good morning! I'm excited to hear that you're making the switch. As for Loopnet, I'm not 100% sure. We have a local commercial MLS that I used called KCREA. In it, you can search for expired listings. I'm sure the premium option of Loopnet will have that functionality.
Hey Eugene! You absolutely can. I have met many agents who operate as "resimercial" agents who focus on residential and take on a commercial deal every once and a while. However, those individuals are typically not top producers in commercial real estate. Commercial real estate brokerage is an addition to their main book of business in the residential space. Hope this helps.
Im a residental realtor and i got a commercial real estate client looking for retail property for a liqour store. Can i use my new client as leverage to get in with a brokerage to help me with the deal to get more information, experience, and working with brokerage?
Hey Jacob! That’s a good question. Having a client looking for a liquor store space doesn’t really give you too much leverage. Instead, I would just leverage my network to see if you can be introduced to agents within commercial brokerages and express your interest in joining the ranks. The goal is to find a brokerage that is a good cultural fit for you.
Great question! It stands for the "International Council of Shopping Centers". However, I believe they recently changed their name to "Innovating Commerce Serving Communities". Here is the link to their website: www.icsc.com/
Residential looking to get into commercial, after accidentally building a relationship with an investor. Nobody within my independent brokerage is helping. 🥹 Trying to find connections.
Hey Melanie! Yes, it can be tough to find mentorship outside of a commercial brokerage. Depending on your long-term goals, you may want to consider interviewing with brokerages that either strictly focus on commercial or have a strong commercial arm within their business. That way, you’ll have better chance of getting commercial deals across the finish line. I wish you best of luck!
