New to CRE but already have a client base, looking for advice.
[deleted]
[{"id": "huwubrb", "text": "Go elsewhere. You are able to make it rain \u2014 any shop would be lucky to have you.", "replies": [{"id": "huwvuzj", "text": "Seems the hardest part for me is getting my foot in the door with the right brokerage. \ud83d\ude02", "replies": [], "depth": 2}], "depth": 1}, {"id": "huww8go", "text": "Is that in writing somewhere?", "replies": [{"id": "huwwv2k", "text": "It\u2019s a company policy since I have not closed at least 3 comercial deals in the last 24 months. I did not know this going in ( my fault for not making sure everything was clear) it is in writing in the mentor/mentee contract. If I would have known this from the start I would have bailed and kept searching for a broker.", "replies": [{"id": "hux27h9", "text": "Dude rule #1 in investments is read every single word of a contract, especially if it impacts you, and if there\u2019s something you don\u2019t understand spend some cash on a lawyer who can explain it. Not reading the contract you signed up for isn\u2019t a good excuse - would chalk this one up as \u201clife lessons learned the hard way\u201d. \n\nThat said if you bail on them how much cash are they set to lose - are they really going to sue you over it - probably not, but like, relationships and stuff. I have no idea what your relationship is with the people you signed this contract with or if you\u2019re in a small city where you just burned someone you\u2019re going to be working with the rest of your career. Assuming you\u2019re in tenant rep leasing brokerage this isn\u2019t good for you, and if you\u2019re in LL rep and the LL finds out it\u2019s not good, they\u2019ll be pissed if they think you burned a bridge in a small market with a tenant rep. If you\u2019re in investment sales which it sounds like you\u2019re not who cares.", "replies": [{"id": "hux3yey", "text": "I did read the contract I was given, I\u2019m not stupid. This was a separate contract I was given after signing with the brokerage. I\u2019m also not a tenant rep, I specialize in the hospitality space. Specifically buying and selling hotels. There is nothing in my contract that states I have to stay with this brokerage for any length of time so there isn\u2019t anything to sue me over. I am in a small area but signed with a national resi-mercial brokerage since the fees made sense going in.", "replies": [{"id": "huxaot6", "text": "Out of curiosity how have you never done commercial real estate before but are selling hotels? I\u2019ve done a ton of hotel investing and everything I\u2019ve bought has been through people who have a pretty deep background in selling assets with stacked teams - I\u2019ve never met or dealt with a hotel broker who didn\u2019t come up through brokerage or principal side then decide to make the switch?\n\nAnyways if there\u2019s nothing keeping you there and no tail on the contract then just quit. If it\u2019s some small brokerage shop and you\u2019re doing investment sales in hospitality then move on if you don\u2019t want to give them the split you agreed to when you read and signed your second contract. Just find a broker in whatever state you\u2019re in to be the broker of record, offer them some money for the service, and have them pay you the fee. Problem solved.", "replies": [{"id": "huxcqo4", "text": "I\u2019m great at networking! \ud83d\ude09", "replies": [{"id": "huxdn1d", "text": "I mean I am too but like I wouldn\u2019t sell a LIHTC deal for someone because well I\u2019m not a broker and I know nothing about that business. Have you ever done anything in hotel investments before? Like any sort of valuation work? That\u2019s great that you have sellers but like do you have a Rolodex of buyers?\n\nKind of wondering specifically what you\u2019re selling (ie RV park? Motel? Luxury branded hotel?)? How big is the GAV for the deal(s) / how many keys per asset? Hospitality is pretty complicated especially right now, if you don\u2019t have a background in it not sure how you\u2019re doing your clients a service?\n\nTo be clear I say this with sincerity too I\u2019m not trying to be a jerk it just sounds like you\u2019re in way over your head from what you\u2019ve written.", "replies": [{"id": "huxe3jw", "text": "I\u2019m sorry if you feel I\u2019m in over my head from what I\u2019ve written. I\u2019m not, but I appreciate your concern. I know what I\u2019m doing just making sure I have the right brokerage to service my needs.", "replies": [{"id": "huxfc9c", "text": "Have you bought, financed, asset managed, property managed, or been the seller of a hotel before (assuming that\u2019s what you\u2019re selling)? I mean the listing agreement is the easiest part, creating a market is challenging with buyers who the brand (assuming you\u2019re selling a brand affiliate hotel) is cool with is complicated. So is knowing what the value of the asset actually is.\n\nETA if you\u2019re selling like a 5 room b&amp;b who cares you do you they trade like houses but if it\u2019s an actual commercial property you need like real experience in commercial brokerage and investment which, with all due respect, your posts indicate you don\u2019t have. Anyways good luck.", "replies": [{"id": "huxhl08", "text": "I am selling hotels, I have various classes from economy to luxury (almost all are branded.) I am well aware that the listing agreement is the easy part in the deal. I do have a Rolodex of both buyers/sellers. I feel like you and I got off on the wrong foot with my original post.  I know you are not trying to be a jerk, I\u2019m not either. \n\nI know what I need to do in my situation I was just looking for how others in this forum would handle a similar situation.", "replies": [{"id": "huxl0m0", "text": "Ok so I\u2019m super confused - you\u2019re new to commercial real estate coming from a marketing background but you\u2019re a licensed broker in several states with experience selling branded hotels across all segments but need to find a commercial brokerage firm? I feel like I\u2019m missing something with your story?\n\nI mean look if you have experience and know what you\u2019re doing just leave the firm you\u2019re working for I\u2019m not sure what they give you if you\u2019re a licensed broker with experience selling branded hotels? Anyways good luck with your sales.", "replies": [], "depth": 11}], "depth": 10}], "depth": 9}], "depth": 8}], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "hux5axc", "text": "The hardest part about CRE is having the clients. You\u2019ve got that down. Which part of the paperwork worries you?", "replies": [{"id": "hux5qyo", "text": "Honestly none of it worries me. I just wanted to be shown the ropes for the paperwork so I knew exactly what to do since I haven\u2019t done a deal as a CRE agent yet. I\u2019m sure I could figure it out solo but thought having someone show me would be easier. But seems that puts me into a category of being completely inept at the entire industry. \ud83e\udd37\ud83c\udffc\u200d\u2640\ufe0f", "replies": [{"id": "huxa6ah", "text": "The big companies are designed to either train newbies or leave rainmakers alone. Since you don\u2019t fit into either category you\u2019re probably best avoiding them. Might make sense to find a small shop where you can work hand in hand with the main people who will be more creative in how they work with you.", "replies": [{"id": "huxafid", "text": "This makes sense. However I am licensed in multiple states. It\u2019s hard to find a small broker that can handle that as most are only in 1 state. Which leaves me having to find multiple brokers.", "replies": [{"id": "huy6phm", "text": "You can always pay a local broker a small fee to go into the deal with you. That part should be relatively easy", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "huxbm9p", "text": "You should make deal with mentor and broker and you should be happy with this deal if you are not happy with the deal don't take them you are in charge not them", "replies": [{"id": "huxbs43", "text": "Good point.", "replies": [], "depth": 2}], "depth": 1}, {"id": "huxe1wz", "text": "Honestly, if you can\u2019t navigate this one, you might be in the wrong industry (maybe a harsh tone there, but you sound like the new guy with all the answers). You have unlimited options; however, three stand out:\n1) negotiate for your existing deal to be excluded.\n2) negotiate the mentor/mentee split based on fee size\n3) do the above and learn something from the mentor\nThe more successful I\u2019ve become as a broker, the more I realize I can always learn something from everyone I meet. Best to take the humble (but fair) route, in my opinion. You might prove to your mentor that you are as good as you say you are and they ask you to partner on future deals. You never know what could come next.", "replies": [{"id": "huxeper", "text": "Everything in your post is good advice. I am in no way coming in as someone who knows everything. If I came off that way it was not my intent. I tried not to ramble on in my original post. I was just looking for some advice, I\u2019m positive I know what I need to do I just wanted to see what others thought in this forum.", "replies": [{"id": "huxf4l9", "text": "Good to hear. Best of luck. It\u2019s a wild ride.", "replies": [{"id": "huxf8pm", "text": "Thanks! I\u2019m ready for the thrill. \ud83d\ude02", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "huxiphh", "text": "Ok, so you are brand new to CRE but you have clients and you just need help \"with the paperwork?\"\n\nSo, you come from the residential side and you are entering the commercial side? Do you understand that commercial real estate is a lot more than having the client and \"some paperwork\".\n\nDo you know how to do a proper commercial real estate analysis? Do you know how to do a commercial real estate due diligence?  Do you know how to read and be thorough with a commercial appraisal?  Do you know which questions to ask to the city/county/state to see if your client project is viable in a location and how much it would cost? \n\nI think the broker might have identified that you might have clients but you might not know about commercial real estate and could be a liability. \n\nI get and find understandable that  you do not want to give 50% of you commission, but I highly advice you to find a mentor or a broker with a lot of experience in commercial. Fucking up in CRE could bankrupt you and your client.", "replies": [{"id": "huxkn85", "text": "I absolutely understand residential and commercial are completely different and that the commercial side is more than having clients and paperwork. Perhaps I omitted things from my post as I was trying not to ramble on.  I do know how to do a proper analysis, how to and what goes into due diligence (for the property types I work with) and I know how to read an appraisal. I realize any amount of fuck ups can be catastrophic in this space. I\u2019m new to CRE as an agent not business in general. Also, no I am not coming from the residential side I started out solely in commercial. \n\nI get what you are saying with how the broker may have taken our conversations.", "replies": [], "depth": 2}], "depth": 1}, {"id": "huxmhmv", "text": "You'll only lose half the commission on any deals you do.\n\n(You get to keep 100% of the commission on the deals you *don't* do).", "replies": [], "depth": 1}]