Have you noticed a significant increase in CRE Agents?
Hi all,

I have been in the industry for 2.5 years now as an agent, and just had a few questions for some of the more seasoned CRE folks.

My senior agent has always preached "Make 500 calls a week, and you will make at least 200k a year." I fully bought into that mindset, and am starting to realize the obvious inconsistencies.

Most owners I call have already been hit multiple times by other agents over the past month, if not weeks. Most owners have out of whack pricing expectations, as these inexperienced agents sell them the moon telling them there property is worth far more than it is. Almost every call is an uphill battle from the start.

I sit here typing this having made 147k last year which was decent, but have no repeat business as I was assigned to a corporate tenant where the owner profile is very private and own maybe 1 or 2 stores. I don't want to have to make 500 cold calls a week for the rest of my life.

My senior has recently stated how they used to get 6 points on everything (I just had to fight to get 4 points on a $1m deal), and how when they started calling no one had ever contacted these owners. This is obviously extremely frustrating, as I am busting my ass and their only real advice is to "keep hitting the phones."

My question to you all is, is there as much opportunity now for an agent as there was in 2014 or before? Or is the market extremely saturated with new agents?
[{"id": "id7nlz1", "text": "It's because the market is getting crazier and crazier each year. The increased interest rates will dampen sales a little bit now, but it's still fairly intense out there, and people still realize there's a lot of money to be made in RE transactions.", "replies": [], "depth": 1}, {"id": "id7q5iv", "text": "As a commercial broker myself, I can confidently tell you that brokerage is a pyramid scheme. Companies get guys (and girls) like yourself to churn and burn calls all day everyday in the hopes of making $$$$$. While the seniors make money of your struggle until they find someone else to take your place. Which is why I left and transitioned to institutional acquisitions because I couldn\u2019t take the grind and bullshit anymore. Make sure you save cause that money needs to last, best of luck", "replies": [{"id": "id7sqqb", "text": "I wouldn\u2019t listen to this guy the moment he called brokerage a pyramid scheme.", "replies": [{"id": "id7tjnf", "text": "In the denial stages still I see. Don\u2019t worry, you\u2019ll get there champ.", "replies": [{"id": "id8zw0b", "text": "I see you subscribe to doctor_scholls way of thinking. I\u2019ve been in sales my whole life and it\u2019s not for everyone but those who fail always have the same stories/excuses. However, that doesn\u2019t make it a pyramid scheme.", "replies": [], "depth": 4}], "depth": 3}, {"id": "id7we33", "text": "This business runs on dumb young kids and if you don\u2019t see it, I wonder who you are.", "replies": [], "depth": 3}, {"id": "id7zhww", "text": "Its not actually a pyramid scheme since you are not taking money from younger brokers but its structured like one in who gets paid. Its just funny but yeah not actually", "replies": [{"id": "id86wf0", "text": "time is money.  when you have a 90% failure rate for new agents yeah you are very much taking money.  \n\nif you make 100 calls a day you work at a call center, not in CRE.", "replies": [{"id": "id89v6x", "text": "Lots of bad takes. Investment banking analysts do an enormous amount of grunt work, make $150k, while the bank does multiple 8 figure transactions and senior partners make millions. \n\nearly legal professionals bust their ass, make good money but the partners own the profits of the law firm and make millions.\n\nPeople in medical fields do residency for years making minimal wage and then 6-8 years later start making good money, meanwhile the senior folks made millions. \n\nAre those all pyramids? No. \n\nHowever, what's different is that there is ZERO barrier to entry into brokerage. Supply and demand leads to dynamics mentioned here. And success in brokerage is validated by being in the industry long enough that competitors at your peer level exit the industry. \n\nThat's why all the 20% brokers that make 80% of revenue are established long term brokers. Every market has those 1-5 brokers that compete for 80% of business. \n\nThen a bunch of other smaller agents take care of the 20% remaining and that's where cold calling allows you to break in if you're not part of a top team.", "replies": [{"id": "id8fqic", "text": "most of the ones you named the difference is the less paid go on to be the more paid, that isn't true in CRE brokerage.\n\nI'm not saying don't cold call, do it is an intrinsic part of this business.  I am saying theres a limit to that and if you are cold calling all day past year 1 then you aren't even bothering to service clients.  \n\n80% of brokerage work never gets compensated because the newbs wind up doing it and leaving before they ever get a cut is what I was saying.  If your brokerages focus is on you cold calling all day at OP's point then yeah they aren't building his career they are just using his labor and he needs to look at that from that perspetive.", "replies": [{"id": "id8mxt5", "text": "Those industries have young people that burn out and leave, just like brokerage. Brokerage is relationship building and takes years to hit traction. The reason you have to make lots of calls is because only a very small percentage of owners are motivated to sell. You need to building relationships with 500 owners to get 1 listing kind of thing. \n\nIf you\u2019re building relationships with many owners  and not getting deals done it means you\u2019re not a good broker\u2026 means you don\u2019t have ability to win clients over due to lack of credibility, experience, track record etc. \n\nI hate the \u201cmake 600 calls and you\u2019ll be successful\u201d advice from other brokers because while it\u2019s true, it\u2019s a cop out. \n\nwhat they really are advising is that you have to viciously, every day, hunt for motivated buyers or sellers and deliver value to them. \n\nNot every agent can deliver value. Some are worthless and call like brain dead amateurs \u201chey seller, do you want to sell?!?!!\u201d x500 times And wonder why they have no listings. Meanwhile a competitor broker peeling back the onion, looking to assess how the seller is thinking, to try to propose solutions and advise them. \n\nLearning how to do that is hard. I think the industry self selects people who think it\u2019s easy or don\u2019t care about working with real estate owners and those people drop out once they realize just because you pound the phone doesn\u2019t lead to closed deals. It leads to prospects but converting them is a whole different game\n\nAnd this business is the doggie dog world. You really have to fight to find your edge because sellers are ridiculously hard to work with", "replies": [], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "id7qq6w", "text": "I see more brokers, and more residential expressing a desire to 'get a commercial license'. The red flag being that in my state this is no commercial vs Res license.", "replies": [{"id": "id8f134", "text": "The last thing this industry needs is more residential brokers thinking they can do commercial.  I have just seen this go poorly so many times.", "replies": [], "depth": 2}, {"id": "id8oz36", "text": "&gt;I see more brokers, and more residential expressing a desire to 'get a commercial license'.\n\nThank you - that's the laugh I needed today!", "replies": [], "depth": 2}, {"id": "id947td", "text": "\ud83d\udcaf No difference in my state either. I actually don\u2019t know of any state that differentiates.", "replies": [], "depth": 2}], "depth": 1}, {"id": "id7t2n1", "text": "With the looming recession, the shitty agents will get washed out into other industries. \n\nThe agents with the talent and knowledge to make it in the biz will weather the storm and come out with more business because of it.", "replies": [], "depth": 1}, {"id": "id7u5pb", "text": "2.5 years isn\u2019t long enough.  You\u2019re just getting your feet under you, which is a really good thing, and the discipline approached to cold calling is a plus. You won\u2019t have to continue to make those calls the rest your life, but for now you should make them until you get good relationships that continue to feed you.", "replies": [{"id": "id85w3l", "text": "This advice^^", "replies": [], "depth": 2}, {"id": "idamxcb", "text": "I\u2019m in a different industry, but it took me probably about 7 or 8 years to really get established in my career. It\u2019s year 11 now and I don\u2019t have to work anywhere near as hard as I used to.\n\nThis is solid advice, u/conorsleftshoulder. The grind of the early years of your career is not what the rest of your life is going to be like. It gets easier and pays better with time, every career does.\n\nWhen you\u2019re young and just starting out you don\u2019t have a network, don\u2019t know anyone, you\u2019re unproven with little work experience, and you\u2019re trying to learn the rudiments while you work. It\u2019s an uphill climb for the first several years, but then it gets *much* easier.", "replies": [], "depth": 2}], "depth": 1}, {"id": "id7vl60", "text": "In all fairness you are an inexperienced agent with only 2.5 years, most don\u2019t make it to 5. Starting out you need to make those calls to figure out the market and who the players are, but I feel you it\u2019s a fucking grind and burn out is real. That said, you won\u2019t need to make that many calls once you\u2019re established and found your niche, it becomes less about volume and more about quality/relationship building. That said how many LOIs are sending in a week?", "replies": [{"id": "id9l10c", "text": "Inconsistently one a week, 18 months in. What\u2019s a vet agent do? Makes for a motivating goal.", "replies": [], "depth": 2}], "depth": 1}, {"id": "id7wa43", "text": "I always wondered who answers the phone, I get so many random calls I just have them go to voicemail. And so many random unsolicited emails that my junk folder is huge. \n\nThis is a relationship business, and trust and reputation are the most important assets. I would advise other networking options if you are hitting your head on cold calls. \n\nFriends are better then clients.", "replies": [{"id": "id83ad5", "text": "Thank you for the advice! I completely agree.", "replies": [], "depth": 2}, {"id": "id8p07e", "text": "This.  Cold calling is ridiculous in this day and age.  Network, network, network.  Volunteer for NAIOP/ULI/CoC/EcD/ etc.  Hand out flyers, handle IT at events. Be the person that does the job nobody else will do. Know the players and use this as access to let them get to know you.  Every single person I know is always looking for young talent.  Your youth is your power, not your weakness.\n\nI started in 1998 with a phonebook and drawn stacking plans.  Times have changed.  Work smart.", "replies": [{"id": "idbx91x", "text": "I hate cold callers lmao", "replies": [], "depth": 3}], "depth": 2}, {"id": "idb8ash", "text": "&gt;This.  Cold calling is ridiculous in this day and age.  Network, network, network.  Volunteer for NAIOP/ULI/CoC/EcD/ etc.  Hand out flyers, handle IT at events. Be the person that does the job nobody else will do. Know the players and use this as access to let them get to know you.  Every single person I know is always looking for young talent.  Your youth is your power, not your weakness.\n\nthis is the thing, us new comers need to at least be given a chance to build that relationship.", "replies": [], "depth": 2}], "depth": 1}, {"id": "id7ygrh", "text": "Yeah. The market is nuts and everyone is trying for a 'get rich quick'. Obvs it's a mill and not all agents are created equal.", "replies": [], "depth": 1}, {"id": "id8escp", "text": "I started working in commercial brokerage in 1997 and it was the exact same thing.  new guys get on the phone and bust their ass making calls. There are always new brokers looking to start and those are the guys you put on the phone.  Hell my first job was commission only which thankfully the industry is moving away from. \n\nThe way you get out is get promoted up, change jobs now that you have experience, or find repeat clients that can provide more sustainable income for you. Its been that way as long as I remember but now the companies are bigger and you have better technology.", "replies": [], "depth": 1}, {"id": "id8tqka", "text": "Which market are you in op?", "replies": [], "depth": 1}, {"id": "id8ut8g", "text": "It took me about 5 years to build up a client base big enough to where 80% of my business was repeat business or referrals. Keep in mind you only do business with someone once if you don't deliver quality and insightful service.\n\nBusting your ass for $147k is not bad going but it takes time to get to the upper echelon deals. So keep your head down and you will reap the rewards in the future", "replies": [], "depth": 1}, {"id": "id90fi0", "text": "I\u2019m an asset manager for a PE firm. I can tell you this, most brokers send me garbage and don\u2019t even understand why it\u2019s garbage. Look I get it there is something maybe for everyone and lots of different investors have different reasons why they invest. My advice though is this learn to look at deals from an owners prospective. This will save you lots of time from deals you shouldn\u2019t waste your time with and will make it easier to sell deals to owners.", "replies": [{"id": "id95fqb", "text": "Sounds like you should have lunch with OP and do some mentoring.", "replies": [], "depth": 2}, {"id": "igvohn6", "text": "I\u2019m interested to learn a little more about how you evaluate garbage opportunities vs gold mines. Would you mind if I DM you?", "replies": [], "depth": 2}, {"id": "j023hn7", "text": "Late to this but wanted to see if you could give some general insight/example of what the \u201cgarbage\u201d is.", "replies": [], "depth": 2}], "depth": 1}, {"id": "id9f3zz", "text": "What market are you in? As an owner if you\u2019re not bringing me something, I could give 2 fucks. Bring me a tenant of off market bid and I\u2019ll start paying attention to you. Calling to ask for a listing, I\u2019ve already forgotten you.", "replies": [], "depth": 1}, {"id": "id9sa33", "text": "Diversify your business. Don\u2019t just rely on sales, focus on leasing too. Many owners might not want to sell but they might need help with leasing, which can also generate leads on the tenant rep side.", "replies": [], "depth": 1}, {"id": "id9vsij", "text": "In hot markets, owners are probably getting regular cold calls. Please at least get the Do Not Call List, as required by law.  These people don\u2019t want to get cold calls!   If you have a relationship with someone\u2014they signed up at an open house or something\u2014you are good. Otherwise leave us alone!", "replies": [], "depth": 1}, {"id": "idav1pl", "text": "Relationships is the name of the game. I've made a few deals happen from cold calling, but knowing people is where my deals and referrals come from!\nJoin your local chamber of commerce, rotary, lions club, community service group, volunteer around town, but donuts or pastries and drop them off at any store that you know the employees or that you regularly shop at.\nCold calling is only 1 tactic to get leads, and it is an exhausting one.", "replies": [], "depth": 1}, {"id": "igsa69m", "text": "2.5 years is nothing! Doing $147k for your first year is IMPRESSIVE! Look at cold calling as \u201chow many good conversations can I have today\u201d vs \u201chow many listing appointments can I schedule today\u201d even though that is the end goal!", "replies": [], "depth": 1}]