For Commercial Real Estate Agents

May 1, 2006 Ezine

May 1, 2006



































Read by More Than 30,000 Agents

Always be determined to become the
best real estate agent in your territory!

In this Issue:

It's Time to Get to Know Lender REO Departments

Last September I was speaking at a conference hosted by one of the individual state real estate associations. One of the other speakers was the association's chief real estate economist, and he said the following to the audience:

"Approximately 40% of the real estate agents licensed in our state have never experienced a down market throughout their careers. They got their real estate licenses, got into the business, and immediately felt like a mosquito must feel in the middle of a nudist colony...there was so much opportunity they just didn't know where to begin!"

Well that was seven months ago and real estate markets in many areas are not quite as on fire as they were at that time. But in following-up on what the man said, are you familiar at all with the term "REO" and what it means in our industry? (The way to pronounce this term is by pronouncing the individual letters themselves.)

But if you've never experienced a down market in our industry, you may not be familiar with the term. And if you've been a veteran in our industry having worked through one or more real estate recessions in your area, the term may be more familiar to you.

A lender's REO department is their department that handles "real estate owned" by the lender, and more specifically real estate that has been taken back by the lender due to non-performing loans. But for quite a number of years now these departments have become irrelevant for many commercial agents because foreclosures and non-performing loans have been at very low levels. But with the writing I'm seeing on the wall, these departments may become very busy again in the months and years ahead of us.

Foreclosures are on the rise again in many areas and this could be just the beginning of a growing trend. I'm usually an optimistic person, but in the 25-plus years that I've been in our industry, both of the times I've seen real estate transitioning like this into a cooling off period, it's gotten a lot worse before it's gotten better. And when adding what appear to be substantially rising energy costs into the mix for manufacturing, distribution, commuting, heating, lighting, and air conditioning, this doesn't make me feel any better about where things may be headed in the future.

With this in mind, do you now have active and ongoing relationships with the decision makers in the REO departments of the major commercial real estate lenders in your area? The reason I'm asking this question is I think they're going to get very active in having properties on their hands that they'll need to sell in the months and years ahead, and the brokers who get these listings will be the ones who have the best relationships with them.

Do you even know who the key people are in these departments? If not, it may be well worth your time to find out now!

Once it becomes obvious to everyone that these people have a lot of properties they need to sell, every broker in the world will be chasing them for their listings. But if you show them you care about them well in advance of this broker stampede, and become the first person to solidify yourself in a great relationship with them, you'll be in a great position to receive multiple listings from these people if and when they start getting properties on their hands they need to sell. And as you know, building relationships with people that can lead to multiple transactions in one year with them, can be much more profitable than building relationships with people who may do one transaction every three to five years.

So find out who these people are who are in charge of the REO departments of lenders who have many commercial property loans placed in your area. And if you don't know who these lenders are, you may be able to work with your title company and find out which lenders currently have the most loans placed on commercial properties in your area.

And since it's been a long time since lenders have had to handle non-performing loans on commercial properties in a big way, the people in charge of the REO departments may be new since the last real estate downturn in your area. And if this is so, it probably means they have no strong relationships with other brokers in your area right now, because up until now they've had no reason to. This translates into great opportunity for you to begin building relationships with these people immediately.

So begin the process of making this happen. Start finding out who these people are, then meet with them and ask them if there's anything you can do to provide them with important information on what's happening with commercial real estate in your area.

Include them on your mailing lists, send them comps, take them to lunch, send them your E-newsletters, and begin building relationships with these people so it can lead to solid business for you before your competitors even know they should be talking with them.

Click here for downloadable E-books and live audio interviews with top-producing commercial real estate agents. These interviews are with industry experts who show you exactly what they do to continually make $500,000.00 to more than a million of dollars a year.

Building Relationships, Power Networking, and Referrals

How are you doing at building relationships with the kind of people you want to do business with? Are you getting repeat business from your clients automatically, or are you finding yourself fighting with your competitors to represent your people the next time all over again?

Are you networking in places that lead to solid, long term relationships with the kind of people you want to be working with? Or are you relying on prospecting people cold and trying and build relationships with them that a complete outsider to them?

In addition, how are you doing at obtaining quality referrals from the people you know and have done business with? Are you obtaining quality referrals from these people, or are you again relying on building relationships with people by meeting them through cold prospecting?

And if this is so, how much money do you think you're costing yourself by not building these kinds of solid relationships, power networking and getting great referrals?

If you'd like to learn how to do this on an entirely new level in your commercial real estate business, and start putting more commission dollars in your pocket, join me on my upcoming Inner Circle teleseminar call on Thursday, May 18th, at 8:00 p.m. Eastern Time, where I'll tell you exactly how to start making this happen in your commercial real estate business.

To learn how you can join me on both this call and on one more Inner Circle call for FREE, receive audio CDs and written transcriptions of both calls sent to you in the mail, and be able to ask me questions on how to continually build your commercial real estate business to the next level, click here.

Click here if you'd like more information on my one-on-one coaching program to take your real estate productivity to the next level. One-on-one coaching is available for both commercial real estate agents and company management.

"Jim's coaching and training has assisted our company in landing millions of dollars of new real estate business."

Pat Hall
TOLD Partners

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Click here to visit my Web site. There you'll find many articles and previous editions of my E-zine to assist you in taking your real estate career to the next level.

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If you find yourself trying your hardest in your real estate career and still not making the amount of money you know you can, you may want to find out more about my one-on-one real estate coaching program. If this is something you may definitely be interested in, please send me an E-mail and let me know.

If you arrange for me to lead a seminar or training for your real estate company you qualify for FREE coaching! Call me or email me for more information.

Please forward this E-zine to anyone you know who is interested in becoming a better, more productive real estate agent.

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