CRE Brokerage Advice for Newbie, Help Appreciated :)
Hi, thanks for checking this post out. I am a university student in the last year of my undergraduate degree in Business, majoring in Real Estate. I am hoping to pursue a career in commercial real estate brokerage, ideally working with investment sales. I am about to graduate, yet I have no work experience. And although I have taken real estate courses in school, I feel unprepared in my practical knowledge of the real estate environment and economy. I understand I'll have to network to get a start in this career field, but I would like to read up and better my knowledge and skillset, so I can communicate with professionals - and ultimately succeed in future interviews. For all those who've had experience or are in CRE brokerage, how could I best prepare myself to meet with professionals or potential mentors? Should I learn any valuations, applications, economics principles, etc? Any input would be greatly appreciated, thank you!
[{"id": "cz7tyfo", "text": "What market are you targeting? CRE is an old school business so if you are looking to jump right into brokerage my advice is to cold call brokers or teams and ask to meet for coffee.\n\nAlternative entry points are working as a researcher or lease admin for the larger firms. These positions are low pay salaries, but they offer a chance to meet teams, network, and prove your worth.\n\nI was in the same boat as you 2 years ago, so feel free to PM me if you have any questions.", "replies": [{"id": "cz7w15d", "text": "This is good advice. I would add that you will learn more through osmosis being in a real estate office and around deals that are happening than you will trying to study on your own.\n\nYou will benefit most from practical, real world experience, so your goal should be to get your foot in the door with a good brokerage office where you will get a good amount of face time with a solid mentor.\n\nSince you want to be a broker, go and get your real estate license (if you haven't already) in the state you are interested in. You will be more valuable to a real estate firm and it will be easier to get a job that way. Next step is to meet with coffee with a handful of brokers who seem successful in your area. Tell them what you are trying to do and ask for advice. You should try to join a team as a very junior broker, in my opinion that will be the best way to accrue experience and there is a team there to ask questions of when you make mistakes.\n\nGood luck!", "replies": [{"id": "cz7wvc5", "text": "Here are the steps I took, the idea of meeting a few brokers/teams in your market is a great one.  Not only will you get to talk to the guys and see what they are like, it should help to give you a better understanding of the industry.\n\nResearch the firms active in your market, you can do this via loopnet(whose search engine sucks), by looking into your local NAIOP/AIR chapter, if you were looking into industrial/reatil/office you could even drive your market area and pull names off signs.\n\nCall the brokers that you find and tell them what you are up to, ask to setup a meeting and grab coffee (maybe before work).  If you are  uncomfortable calling them and asking for a meeting then you are going to need to learn to deal with it or find a different career path. :-)\n\nAsk them about their job, find out what type of product they work and what their team looks like.  This will also help inform you where you could possibly fit in.  I would keep in mind that you the brokerage teams that make up a brokerage firm are all different and one team at CBRE may be drastically different from another at the same firm.\n\nFrom there, as noted above you need to get your real estate license.  With a degree you can get a broker's license or an agent license, virtually everyone I know has an agent license so don't feel like you have to get a broker's.\n\nMost importantly, save up your money.  You need to have 6 months of expenses in advance, preferably more.  It takes a bit of time to get into the swing of things.\n\nGood luck and have fun with it!", "replies": [{"id": "cz84n18", "text": "&gt; From there, as noted above you need to get your real estate license. With a degree you can get a broker's license or \n\nSaving money is a good point. Whether you get a small salary as an analyst or get a cut of deals you are working on, you will make very little your first year or two. It's just part of the \"paying your dues\" that is necessary in commercial real estate. There is potential to make a lot once you are established, but you have to survive those first couple lean years while you are learning first. Many simply run out of money, but if you make it past that you will find a very rewarding career.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "cz8h1jx", "text": "Depends on the team and role, BUT I'll note that many of them wouldn't be as interested in valuations, economics and theory. At the core this is a business that dies unless clients are preserved and new clients are found. Examples of persistence, previous sales (if any) and being personal are important. Add on professional demeanor and follow-up, asking intelligent questions about their goals and advise, etc. Many will view your education as a demonstration that you can pick up concepts. Others may ask a few questions just to make sure you can think things through a bit. Drive and professionalism are key. \n\nThe exception would be if you are joining an investment sales team as an analyst. That scenario would sort of flip things, spinning through valuations, excel experience would need to be demonstrated. To prep, get a solid commercial property appraisal and read through it or better yet get a book on appraisal and familiarize yourself with it.", "replies": [], "depth": 1}, {"id": "cz8sb8c", "text": "Thank you so much for your expertise on the topic, Celomics, Cbarrister, Limkar, and Transuranic807 :). I understand my income for the first couple years or so will be low, so I am going to focus more on gaining experience and building a clientele as a junior broker. I am still unsure of which specific market I want to specialize in as a broker so I will certainly have to follow your advice on researching online and meeting up in person with brokers to get a better feel for the industry and community to see how I'll fit in. I've also yet to obtain my real estate license so I have to keep that in mind too, thanks for this piece of advice. And I am looking to be on an investment sales team, so I will follow the advice on familiarizing myself with property appraisal. I feel that this is my weakest area, so I'll work harder at understanding the standard proformas.\n\nThe general recommendation seems to be that making the first step in interacting with actual brokers and building relationships is most important. I will certainly do this. I have had some brief conversations over the phone with brokers, and the impression I got was that CRE brokers are generally intelligent, firm, and straight to the point. For a soon to be graduate I feel intimidated because I don't want to be perceived as incompetent or unworthy to be on a team by professionals with much more experience.\n\nI truly appreciate all the help that's been given, thank you for the support. I am looking to transition into brokerage directly as a junior out of school. I have the drive and interest to be a successful broker, however I hope I can demonstrate the intelligence needed in my one-on-one meetings. It really helps me to get feedback from professionals in CRE, thank you all again! If you have any further advice on my approach or terms to familiarize with before my coffee meetings, please do add. All input is very welcome :)", "replies": [{"id": "cz9bgqy", "text": "I am almost in your exact situation. I am a senior getting my degree in Business, majoring at real estate in California. I have 10 months experience as an intern at a private equity firm my junior year. I applied to every assistant, intern, trainee position I could find this winter break. I interview at a couple firms and got a job as a research assistant for a team of 4 younger brokers, the oldest being around 35. I feel that I can relate more to the younger brokers rather than the top brokers who are 50+. My interview was very laid back and they mention the office was a \"boy's club\". I start on monday at a mid sized office doing work for all 4 of the brokers. I hope to gain valuable knowledge of the business and decide if brokerage is for me. I got my real estate license 6 months ago and that definitely helped me get the job. I also try to take as many weekend courses at my university as possible. Excel modeling, Argus certification, Toastmasters are all things that would boost your resume. Good luck!", "replies": [{"id": "cz9v9wz", "text": "Thanks for sharing your process and experience, it's great to hear you're finding success, mate. I'm glad you were able to find a team with a good fit for you. It certainly sounds like you're reaping the benefits of all your hardwork and proactivity :). I appreciate your help, I hope you find the success you deserve in brokerage or any other field you may decide on. ", "replies": [], "depth": 3}], "depth": 2}, {"id": "czask3x", "text": "When you create a list of contacts to call, start with the ones your are least interested in (for lack of better words). Cold calling is a skill and the first ones will be a bit awkward, you will get more comfortable as you get through the list. ", "replies": [{"id": "czgor3h", "text": "Thanks for your advice, I'm sure it will come in handy when I am starting out. Cheers!", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "cz9qmwr", "text": "Great stuff. Just decided to go into CRE and I appreciate all the info. ", "replies": [], "depth": 1}]