Is a Company that Fosters your Growth and Wants You to Succeed

Commercial real estate agents have many different backgrounds. Most had prior careers, and education is not a determining factor as to whether a salesperson will be successful or not. The average commercial real estate agent has at least a college degree based on finance real estate or construction, but some have only a high school education. The seasoned agents have been in the business at least 15 years, and only focus on commercial real estate. They don’t dabble in commercial while also selling residential real estate. Most of them define a niche of commercial real estate, and they pound it…hard. When you walk into a room with someone in commercial real estate, you automatically are not the smartest one there. They are ON IT! They have their finger on the pulse of the market and can work numbers like an accountant. When you are new in the field, you want to associate yourself with some successful commercial real estate people. You will become much more knowledgeable just from being around them, watching what they do, and you should pattern yourself accordingly.

Keep in mind that in commercial real estate, the sales cycle is a bit slower, because many deals take 3-6 months to close, and the really big ones can take a year. However, the per-deal commissions are much higher, because of the high property values with which commercial agents deal. Each deal can put tens of thousands if not hundreds of thousands of dollars in your pocket!

An experienced agent in commercial real estate sales (one who has been doing this for a handful of years) should be making $250K at the minimum. Many new agents, who prove to have the necessary abilities to be a successful salesperson, achieve this goal quickly. Rock star brokers can make millions of dollars per year, depending on their deal volume and average deal size.

Generally, the commission starts at around 6%, but that can drop down for very large deals say over $50 million. When you’re first starting out, you’ll be doing more high commission percentages, but lower dollar-value deals and then that will shift in the other direction over time.

How Much Money Can You Make as a Real Estate Agent?

Many people are attracted to a career in real estate because of the financial perks. There are few barriers to entering the profession and starting your business is relatively low cost. It’s one of the few areas where professional-level income can be earned without 4-9 years of (potentially expensive) post-high school education. It’s a profession where you are paid in direct relationship to your skills, effort and production. So there is no income ceiling, but also no floor. You hire or fire yourself each day by what you choose to do.

People think that as a real estate agent, they are going to drive around in a big fancy car showing property, and it’s going to be a lot of fun. If you believe this industry equals fast money and minimal work hours, it may not be for you. There are certain skills, considerations and duties anyone should examine before becoming a commercial real estate agent, a profession that can be both rewarding and unpredictable.

On the contrary, even though the commercial real estate can be a very lucrative field, it takes a lot of hard work. Only 2% of residential real estate agents nationwide earn more than $250,000 a year. The median annual income for residential al estate agents nationwide is approximately $51,170. However, the successful brokers in the commercial real estate are doing billions of dollars in deals a year, and many earn well over a million dollars a year. What you make your first year will be directly proportionate to how much effort you put into your career, and whether you are willing to follow the training you are provided to reach your goals.

Want to become rich selling real estate? As in all sales, commercial real estate is a numbers game. The more people you talk to, the better the chance of a payday. Your beautiful smile and winning personality will not skate you thru commercial real estate and make you rich. Only hard work can do that. Do you have the drive to be successful?

Do you have the drive to be successful?

               CAN I ALSO SELL RESIDENTIAL REAL ESTATE, IF I AM WORKING WITH CCRE?

 

The answer to that question is, YES you can. If you run into friends, family etc., who want to purchase or sell residential real estate, you certainly can list and sell them properties. However, we encourage you to spend the majority of your time pursuing commercial listings and sales, as the money you will make on those properties is usually much greater.

What Does It Take to be Successful as an Agent?

Successful agents are successful salespeople! There are a number of different approaches and personality styles, but successful agents are personable and driven to a fault. You need to be outgoing and go after what you want, otherwise you’re doomed to toil in mediocrity or worse. Most agents are social, confident, trustworthy, patient and persistent. They have to work hard to obtain every listing and client, and must move fast when opportunities arise, lest they will be left behind. Agents spend much of their days trying to convince total strangers to jump into the market with them as their representatives. Relationships with current and past clients must also be maintained.

There are a lot of factors that influence your potential income in real estate; however, here are six important traits needed to be successful:

Trait Number One: Be an extrovert, even if you normally aren’t in real life. Don’t be afraid to talk to people! Tell everyone you meet that you are a real estate agent. Hand out business cards everywhere you go. You should make at least 100 new contacts every week, especially as a new agent. That doesn’t mean sending 100 emails or posting on social media! You must talk to people on the phone and in person. If you are afraid to call up a stranger on the phone and ask them for their business, then you will never be successful as a salesperson…in real estate or any other field.

Trait Number Two: Perseverance and tenacity, be absolutely persistent…not pushy, but persistent. Keeping track of people and follow up with them. Understand that a “no” today doesn’t mean a no forever or even next week.

Trait Number Three: Patience, one of the biggest mistakes new agents make is the mistake of trying to close something too fast…getting frustrated…then giving up.

Trait Number Four: Discipline, the short answer is treating your career in commercial real estate like a real job…because it is! When you start your career you should be putting 40-60 hours a week minimum. There is just no way around it!

You have to research the product, find the owner, drive the market, photograph the properties, make calls, go on appointments, do proposals, and do listing presentations. There is just not enough time in the day to do all that.

You must develop the habit of “doing the most productive thing you can at every business moment” and compartmentalizing your time. If you want to be successful, you should be at your desk working by no later than 9 am, and you should work until at least 5 pm. You may even take your work home. However don’t convince yourself that you can get as much work done at home as in the office. There are just too many distractions.

Trait Number Five: Inquisitiveness, all of the most successful agents are naturally curious and are constantly looking into different ways to market, prospect, package, finance, sell or close a transaction. That is why you will see all those initials after their names like CCIM, SIOR, MBA, CPA or any number of others. The top professionals keep learning and investigating they know you can never know all there is to know about a topic.

Trait Number Six: Execution, you must have the ability to focus on the task at hand and see that task to completion. Too many people get caught up in doing what is urgent instead of what’s vital and they flip from project to project and never really get much accomplished.

What are Some of the Specializations Within the Field?

As the industry matures, more and more people are specializing in a specific type of product. Yet others just work on whatever deals that seem to cross their paths. Major specializations include multi-family apartments, office building, industrial/warehouses, retail shopping centers, hotel/motels, special purpose buildings, and business opportunities.

Certain people and personality types gravitate to certain specializations. Industrial brokers are usually more down to earth and blue collar, they may wear a polo shirt and slacks, since they will be walking through warehouses and industrial plants all day. They are usually more no games type of people, the salt of the earth… so to say.

specializationsMulti-Family (apartment building) brokers handle the sale of apartment buildings…everything from 5 units up to 100s of units in a complex are considered commercial. Two to four (duplex, triplex, fourplex) units, while considered multi-family are still residential in the eyes of a lender, and usually easier to finance. One of the most requested types of properties in our business is multi-family apartment buildings.

Retail (shopping center) brokers might be the exact opposite. They are dealing with landlords who own shopping centers, NNN (triple net) freestanding buildings, etc., and their tenants are mom and pop stores and major retail chains alike. Typically, high energy, a little pushy, and more sales-like than consulting-like in nature.

Industrial (warehouse) brokers deal with warehouses, manufacturing plants, flex space (warehouse/retail/office), etc. The agents dealing with industrial space are generally more casual in their attire, due to the atmosphere in which they are working.

Office brokers generally personify the stereotype, if there is one, of a commercial real estate broker. Corporate, business-like, and perhaps even banker-esque, office brokers deal with businesses and building owner groups and dress and carry themselves accordingly.

Hospitality (hotel/motel) brokers deal in the sale of hotels and motels. Everything from small mom and pop bed and breakfasts to large high-rises on the beach. Depending upon the type of properties they pursue, they dress accordingly.

Special purpose brokers specialize in “unique” buildings for houses of worship, hospitals, schools, assisted living facilities, rehab centers, half-way houses, the list goes on and on.

Business brokers represent business owners that want to sell their businesses…whether it be a gas station, convenience store, restaurant, fast food chain, etc. They tend to work with people from all walks of life, and really have to pay attention to numbers and details. Businesses can be sold with or without the real estate. With real estate the commission is often 6% of the sales price, whereas without real estate the price tag is much lower, so the commission is generally 10-15%. The potential income for a business broker is generally substantially less than other specializations, at the value of the businesses being sold is usually lower than that of larger commercial transactions.

Your specialization obviously determines what types of properties you represent, but it also determines the people you interact with, the environment you will be in, and what sort of knowledge you need to acquire during the process. Many people will say that a specialization chooses you as much as you choose it. It may take a while before you find your niche in the business. Eventually everyone “fits” with the path they’ve chosen or kind of just “fell into”.

What Type of Training will you Receive?

We don’t ship you off for a week of training, and then expect you to get out there and be a salesperson. Nor will we sit you in front of a screen and tell you to watch DVDs to teach you what you need to know. Our training is ongoing. We offer an extensive array of classes on all aspects of commercial real estate. We expect you to try and attend all the classes. However if you miss one or two the first time they are offered, you can always pick them up the next time around. Just remember that you need to dedicate the time necessary to learn the business in order to be successful.

A few of the typical classes that will be offered are:

  • Prospecting for Listings and the Various Types of Listings
  • Understanding Contracts and Addenda
  • Determining the Value of Commercial Property Utilizing both the Sales Comparison Approach as Well as the Income Approach
  • Locating and Showing Property to Potential Buyers and Confidentiality Agreements
  • Analyzing Commercial Real Estate, Income and Expense Statements, Net Operating Income, Rate of Return on Investment, etc.
  • Tax Records, Legal Descriptions, Zoning, State Use Codes, and Plat Maps
  • Various CRE Software Programs–Timely, Verified, and Reliable CRE Data & Cutting-Edge Tools
  • Realnex Integrated Suite of Tools & Market-Leading Solutions for the CRE Industry
  • IRS 1031 Exchanges
  • Overcoming Objections and New Methods to Reach Property Owners other than Cold Calling
  • Setting up Your Farm Area and Using Contact Relationship Management (CRM) Software

We are not like many of the 100% offices that feel that if we hire hundreds of agents, some of them will naturally succeed without any guidance. We are there for you every step of the way. Even after you have taken all the classes, you will most likely still need some help from time to time, and that is why we have a non-competing sales manager. She will help you decide on a “farm” area to obtain listings, help you with your prospecting, follow up to make sure you are meeting your goals, help you locate properties for clients, help draft contracts and listing agreements, and be there to essentially hold your hand every step of the way, if you so desire.

How Do I Get Paid?

In real estate, agents are independent contractors, not employees of the brokerage firm. Agents get paid commissions on the deals that close, whether as the listing agent, selling agent or sometimes you will be on both sides of the deal…often referred to as a “double bubble”, which means a bigger payday!

Keep in mind that the residential real estate companies that pay 90-100% try to hire hundreds or sometimes thousands of agents just to be able to cover office expenses and make a profit. They often get desk fees whether or not an agent makes sales, so they don’t put forth any effort to make their agents successful. They give their agents little or no assistance, and almost everything provided is an additional fee. Desk fees, transaction fees, E&O fees, etc. Some charge for training, for transaction coordinators to enter your listings in the computer and websites, and most have fees on every single deal that closes. CCRE does no charge any such fees.

CCRE has a graduated commission scale. The more you make, the higher your split.

REMEMBER, 100% OF NOTHING
IS NOTHING!

CCRE PROVIDES YOU WITH THE TRAINING, LEADS AND SUPPORT TO HELP MAKE YOU SUCCESSFUL.

We don’t ask you to write any checks! We will write you a check each week you work!

• No desk fees!
• No transaction fees!
• No upfront costs!
• FREE training!
• FREE desk and/or office!
• FREE business email and private phone extension!

Get the assistance and training you need and deserve to become a success!

CCRE provides free ongoing training classes. You will also get one-on-one assistance to help you hit the ground running. Unlike many brokers/managers at other companies, CCRE’s sales manager is a non-competing manager. The sales manager has over 30 years of experience and does not list and sell commercial real estate! The broker has over 40 years experience selling commercial real estate and has a wealth of knowledge to share with agents. The manager and/or broker does not take the leads that come into the office…they are given to the agents. CCRE’s sole goal is to train and mentor its agents, so they can get listings, make sales, and be successful. Let us help make you a success too!

Call today to find out more!
954-455-3366 Ext. 262