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One Tip, One Deal

Posted by admin in Commercial Real Estate, Tip Of The Week

Yesterday morning my assistant sent out my bi-monthly commercial tip to my local key client database. By the end of the day I had gotten a $1.2 Million deal and an e-mail from a commercial Realtor asking me how I build my database.  Every other week when I send those e-mails out to my database, I get something from it.  There are less than 100 commercial Realtors, financial planners, etc. in that list.  That $1.2 Million deal is at least 12K in future commissions…it is hot!

The returns on commercial marketing dwarf the returns you get from residential marketing, mostly because there is no one doing it.  You are all alone.  Commercial makes a great additional revenue stream AND is a great business to build up as a cushion or hedge against residential business uncertainty.  If you start simple marketing like this tip every other week right now, you can have a good pipeline and consistent business by June when the National Licensing is finalized in all 50 states for residential.  It is a hedge against rising rates that could slow or kill the refinances that are currently filling the residential pipelines.  But what it comes down to is consistently adding value.  Emerson, in his brilliant essay on the Law of Compensation, stated that you will get a return on your efforts.  If you add value, and you do it consistently, you will get rewarded.  It is a LAW, not a theory.

Simple follow-up systems work huge in commercial.  Yesterday, I got a call from a client that I had pre-qualified for a Firehouse Subs purchase 2 months ago.  At that time, I told her she needed to add a partner with experience because her deal was not strong enough to get approved. In the interim, I did my normal follow-up but she never answered my calls or responded to my messages.  Her voice mail for me yesterday said essentially, that she did not like what I told her and had been trying to get approved for the last two months elsewhere but wants to talk to me again.  In other words, no one else could get it approved because she lacked experience.  She now sees that I was right and wants to do what it takes to get approved.  But here is the point, HAD I NOT FOLLOWED UP A FEW TIMES AND EXPRESSED MY DESIRE TO WORK WITH HER STILL, SHE WOULD NOT HAVE CALLED ME.  Do you see that?  Her pride would not let her.

Simple follow-up systems, a couple of messages and a couple of e-mails over a two month span and that is another deal I will ultimately close, another $5K.  The basics are key in commercial, do that, start doing it now, and do it consistently, and your volume HAS to grow as the year goes on.  It is the LAW of Compensation; it really does work – especially in commercial lending! Try it yourself and see…..

Be blessed!One