The RealNex Webinar Series continued November 19 with special Guest Mike Falk SIOR CCIM. RealNex CEO Jeff Finn interviewed Mike and discussed highlights from his new book Abundant Broker. Abundant Broker is a consolidation of best practices, systems and processes that have helped hundreds of brokers start their CRE careers fast and build consistent long-term success. These proven and time-tested techniques take the guess work out of the business to create predictable results and top performance. The Abundant Broker formula for success enables new agents to generate $100,000 in their first year and then, by continuing to refine their process and improve their skills, to build long term wealth in commercial real estate.
Mike capsulizes his Abundant Broker system with what he calls the C3 Fundamentals: My Specialized Area, Breaking it Down to the Ridiculous and Personal Development. By focusing on these 3 fundamentals day in and day out, week after week and year after year, practitioners will become masters of the craft and build a refined business that cranks out more opportunities than they can handle. By building and leveraging a fourth dimension, Relationships, results will further outperform.
Success for the Abundant Broker starts with becoming an expert. Mike stressed the need to specialize. Too often new agents, in their haste to earn a commission, chase deals wherever they see them. Success comes with hard work and discipline. It is imperative to focus. Pick a market and “own” it. Become the expert in a product type and geography. Unfortunately, there are no shortcuts. Top producers start small and build step-by-step to build a database. They know everything can about each building and the all the owners and tenants in their Specialized Area. To make this work the area needs to be big enough to make the desired income, but not so big that one can’t master it. For example, Mike suggested 3-5,000,000 sf of industrial or 2-3,000,000 sf of office space comprising 500-700 properties +_ in a tightly defined geographic area. This might also include 300-500 owners and the corresponding scale of tenants. This much data is far too vast to keep in your head or to manage without a proper CRE database. Mike calls the database the “lifeblood of your business…it will turn cold calls into warm calls and enable you to never miss a timely follow-up”. Of course, the RealNex CRM is ideally suited and custom built to become this enduring asset in an Abundant Broker’s business.
Next the Abundant Broker need to set goals and measure performance. This Mike refers to as Breaking it Down to the Ridiculous. For example, top performers know how much “dough” they expect to make and how many deals that will take. More importantly they know how many calls it will take, to make enough contacts with decision-makers, to make enough pitches to win enough assignments and how many of those assignments will close. The math is simple, but it needs to me measured so the metrics can continuously improve to consistently realize better results and financial rewards. Mike found that based on this formula and systematic approach Abundant Brokers can predict and achieve results with 5-8% of their target.
The third cog in the Abundant Broker wheel is to Personal Development, the need to work on yourself. While each agent has natural abilities, they are never as good as they could be. They need to learn, develop and enhance their sales skills, negotiation capabilities as well as technical knowledge to serve their clients. And, find a work life balance to keep a healthy body and mind. As they improve themselves, they also need to build their brand, become designated for their experience and expertise and to speak, write, teach and otherwise share their knowldge to enhance their profile and reputation.
One of the final takeaways from the session was to be sure you immediately put one thing you learned into practice. So often we hear great ideas or have a great meeting and don’t immediately follow-up or act. Before you know it the idea and benefit is lost. Another nugget was for new agents to find a mentor. Someone that will share their experience and become a sounding board and resource. Another key to protecting yourself is to get it in writing. And, the last was to start small. Don’t try to boil the ocean or become an expert in too much too fast. Focus on a niche and then expand to reach a mature state of optimal productivity.
So, do the work, build your database, plant seeds, sharpen your skills, add value, give back and reap the harvest of the Abundant Broker.