Had an interview with M&M today and the manager told be to think about it for a couple of days and call him back. What does this mean?
Also, He said they want to give me a behaior test. What does this mean? Is he iterested in holding my license?

Thanks

How did he act? Well...think about what he told you for a few days then call him back. he didnt say dont call us. A behavioral test is standard. Probably a multiple choice test to see what type of answers you choose to situations in order to find out what kind of personality you have.

I think it means he is calling the police to have them there when you come back.

Just kidding....

Commercial on one hand can be very easy, on the other, it is one of the hardest things to be done in real estate. I suspect he recognizes you are new to real estate and he wants you to think things over on your end as they think about it too and then meet again and discuss further.

Behavior test just means they want to make sure you'd have the right personality to do commercial real estate.

As for being interested in holding your license, he may or may not be. It will most likely take several meetings for that decision to be made.

All issues of market knowledge and knowing how to handle commercial transactions aside...the #1 problem for new agents is the lack of income. Are you able and prepared to go up to a year without income? In this market it's not unrealistic to want to be prepared for that long of a time if you are completely new to commercial real estate. Prepare for the worst, enjoy the best is better than not being prepared at all.

Good luck.

Thanks guys. appreciate it.

Just remember there is a direct correlation between experience and pay.Don't expect to be making the money of the experienced agents.In the beginning you will have to grind it out and pay your dues.

There is big risks but the rewards are even bigger.

Thanks again. He wants me to do two months of training. I told him I didn't want to do the "training". I understand commercial. You are selling the bottom line more often then the property itself. Don't get me wrong, the property is very important as well. I will accept his training. The going without the income for a year issues are very scary. I have a mortgage and a 10 year old full time. I have savings to get me through but I don't want to spend my savings and not make it in commercial. Its the only thing stopping me from calling him back. I know I won't make anything for the two months of training. I wonder why he is taking on new agents. He said M&M has the largest inventory they've ever had. Does this mean they are having trouble selling it? I think it does because of the market. Risky business. I will decide by the end of the day if I'm going to call back or not.

Everyone needs continual training including me.I work on multi-million dollar deals and I need training.

Commercial is very specialized and you will wait a long time for a transaction to close that's just the way it is.Almost everyone struggles in commercial starting out,I sure did.

Some of the big deals take 2 to 4 years to close.Smaller deals or individual properties are usually 6 months to a year.

Thanks Super. How does anyone make a living in commercial if the transactions close so far apart? I guess the trick is to have many listings ha? The M&M manager has told me that his 3-4 year agents make 300-400k+ a year. Can anyone vouch for this fact?

real estate is like a funnel...you've got to get it filled up to have some of it trickle out. Some deals don't close, some do. You can never sit back and say you are done as you are "sure" stuff is going to close.

Think seriously about the income issue and possibly taking a year. It used to be commercial brokers would say have 6 months saved up but in this market, and in my opinion, it ought to be a year to be safe. Frankly, despite commercial continuing to do well thus far in a very challenged market, it is only going to be a matter of time before that slows down if residential does not pick up. Make no doubt about it- this is a very difficult and problematic market to start in this industry. If you have other alternatives you may want to consider them in light of having a family to support.

But, as has been said before, if you can get the pieces of the puzzle to come together in commercial real estate then it is a great way to make a living if you enjoy the work, which i do. If the pieces of the puzzle don't come together though then it's also a great way to loose your savings.

keep in mind that to do deals in real estate you will have to honestly and truly bring value to your clients to justify them paying you a commission. If you are not able to truly add value to the real estate equation for them then any agents/brokers days are numbered in this field. Training is necessary to teach you the skills necessary to create that value.

What background do you come from- what industry, etc.?

I am currently working as a journeyman carpenter. Its slow with the market and there are around 500 guys including myself on the bench. It has picked up and I'm confident that I could be working again by the end of the month. But that industry is not going to take me to where I want to go. I passed the state required tests to receive my license almost a year ago and have not signed on with a brokerage. I have been researching commercial and investment property for the last year on my own. I think its a good investment and people get rich from real estate investing. I'm facinated with commercial investment property, owning it, working with it, contracts and all other things involving real estate. As soon as I have a down payment I'm going to purchase. Working with a brokerage would just be a stepping stone to where I want to be. Don't get me wrong, I want to represent and bring clients value and will do so. So thats where I am and where I'm coming from.

I can see why a client would hire a brokerage on the sell side(marketing and listing etc etc..) and as far as I know, attorneys won't do that. But its harder to see why on the buy side. I think Most commercial investors have attorneys that would handle the buy side and transaction etc. etc.

That's not true at all,investors come in many forms.I have found may loopholes in attorneys contracts.You aren't paying the broker just for the contract you are paying them to help you find the best deal.There is plenty of crap out there but the good deals take work to find.

I work mainly with developers that are either in town or from out of state.They do not have intimate knowledge of the area nor do they have the time to learn it.they have multiple investments in multiple states.A developer will gladly pay hundreds of thousands of dollars for a potential development project that meets there needs.Often times getting projects approved just isn't about numbers it's about zoning,public perception about the project,politics among city and the county and council members,getting corporate clients to committ as the anchors,use of there specific contractors for build out,etc.

Yea, your right. I suppose if I couldn't take the time to find a deal I would defenitely hire an agent.

Newbie Question: I know residential brokerages have seller and buyer representaion agreements, does commercial have these as well to protect the agent and client?

yes,
buyer or seller (or tenant/landlord) agreements are standard stuff in commercial.

Finding the deal is the same as finding a needle in the haystack. A good broker is like a metal detector and those needles come to you very easily. The best is when you truly develop a relationship with your clients and can anticipate their wants/needs and then the deals become ridiculously easy to locate, negotiate, and get to closing.

Also, NSW, i started in comm. real estate from having worked my way up from being a builder where i started that journey from digging ditches to framing (hey let's start talking cheek cut angles on hip jacks, eh??), to trimming everything out, etc. etc. up through land development to site planning, engineering, etc. etc. A building background, if you have a good head on your shoulders, can be a great asset. I know in my brokerage has been instrumental in understanding the needs of my clients.

Good, I heard somewhere a while back that commercial doesn't have those.

Great, Its good to hear that the background can help and that someone with the same background is making his way in the industry. Although I skipped the site planning and engineering etc. Its still good to hear. Thanks