Is having just a real estate license enough to get into commercial real estate? I need to know what to do to get my foot in the door.
As an agent or as an owner of commercial property?
More experienced realtors usually hook up with land developers - some go exclusive with one corporation and some get a mix of low cost, mid-cost and high end developers in their real estate stable. It would actually depend on your target market and what you intend to sell to them. Another way of getting your foot in the door is starting within your immediate neighborhood and getting a listing of all the properties up for sale and promoting your business within your social circle. Good luck!
On my online newsgroup and at seminars, I am often asked, How do I get from where I am (usually single-family residential properties) to dealing in larger scale properties? The question is often followed by a recital of how the investor has tried and failed to purchase a larger property or is unsure of the steps necessary to acquire larger income properties. Some have yet to do their first deal and wonder if they can start in commercial real estate without first acquiring smaller properties. Many investors do start their career by buying a rental house, then another, and maybe a duplex or small apartment building. Sooner or later they hit the wall. The wall is when you're bank tells you they can't give you any more single-family mortgages or that your portfolio is outside their lending parameters. This is a common scenario and a very real problem. The investor has gotten too big to deal with the residential lending folks and is a fish out of water when it comes to knowing how to approach the commercial side of the bank. Another common scenario is the investor who happens upon an income property deal, perhaps assumes an existing mortgage or negotiates seller financing. The property proves to be a winner; the investor makes a nice profit, and then goes looking for another deal. Then the flip side of beginner's luck kicks in, also known as the sophomore jinx. What seemed so easy with the first property proves difficult to reproduce. Only then do they ask, How do I know how much it is worth? How do I know the seller is telling the truth about the cash flow? How can it be financed? How do I raise the down payment? The uncertainty can be overwhelming.........Real Estate Agent Bendigo
Getting into commercial real estate is much more competitive than residential so you need to figure out a way to set yourself apart he competition (ie, other job applicants). It's amazing - in residential there's often 50-75-100 agents in an office, whereas, in commercial it's much smaller. In my office, we have 12 brokers and that's it. Also, commercial real estate is a full-time career - so no part-timers, no dabblers, no retirees looking to do something to pass the time and make a little money. Having a college degree and/or a background in sales and/or finance is helpful, but may not be required depending on which company or industry focus you have an interest in. You didn't metion what area of commercial you wanted to get into (brokerage sales, development, ownership and within this - office, retail, industrial), so I've listed some companies below for you to research that may focus on one or multiple areas: NAI Global Grubb Ellis CBRE Cushman Wakefield Binswanger Sperry Van Ness Tishman Speyer Colliers Jones Lang LaSalle GVA Studley Marcus Millichap Staubach Brandywine Realty Trust Liberty Property Trust RAIT Investment Trust Mack-Cali Kravco-Simon PREIT Vornado Cedar Properties Centro (they're probably not hiring, as their stock has taken a beating recently) Also, these are all bigger organizations - so don't forget to find and research smaller local companies as well. If you really want a job in commercial - call up the local director and tell him you would like to interview with him for a position (I found that many commercial companies had sales openings even when not listed on their site) - if he says they don't currently have openings - tell him you would still like to meet with him anyway for 15 mintues for an informational interview and to be considered for a future opening. When you do interview for a job, finish strong and close the interviewer by telling him I really want this job - what's the next step? Good luck.
