Launching a career in commercial real estate can be extremely profitable for those who can keep up with the demands of the job, but it’s a myth that working in this industry means earning quick bucks with minimal hours. You need to be able to understand what your clients want, how commercial real estate sales are different from selling single family homes, and how to initiate transactions. There are many aspects of the business to learn and put into practice. Those who can’t keep up will quickly find themselves seeking out a new career path.

Work aside, there are significant rewards to breaking into the commercial real estate business. Once you work out systems and processes to maximize your workflow, you’ll soon find that your hard work will pay off.

Find a Focus

It may seem like casting the net far and wide will yield the most results. Unfortunately, the truth is exactly the opposite. You want to find a specific niche within the commercial real estate industry where you can serve your customers exceptionally well. When you focus on targeting a specific type of property or client and do your job right, you’ll become known as the go-to person in your niche.

Think about it; if you’re going to be spending millions of dollars, would you prefer the help of an agent who’s a generalist in the real estate industry, or one who has in-depth knowledge of the particular type of property you’re interested in? Besides, specializing makes it much easier to find leads and prospects, as the research demands on your time won’t be as wide. You’ll also be a lot more efficient because you’ll know exactly what clients are looking for, how to highlight the best features of a property, and any aspects that might affect the closing process.

Prepare a Buffer Account

Your salary is based on commission, meaning you get paid when you make a sale. Some forms of real estate business may offer a supplemental salary or give an advance for future commissions, but your main source of income will be those commissions. Unlike residential properties, deals for commercial properties can be very complex and time-consuming. Whereas it may take just a few weeks to sell a residential home, it could take up to a year to close the deal on a commercial property. If you’re leasing a property, it could still take some time to receive your commission, as you’ll have to wait for the renter to assume tenancy.

What this means is that you’ll need to shift your mindset in terms of getting paid. You need to be able to handle the fact that your income will fluctuate month by month, and there may be months when you won’t receive a commission. Being patient will help you handle the ebb and flow of the business as you continue to work on the daily tasks that ultimately lead toward closing each deal, such as showing properties to clients and preparing the necessary paperwork.

Since your income will be sporadic, it’s important to keep a buffer account during down times. This will be essential at the start of your career, and during periods when you don’t have many leads. Keep at least six months’ worth of expenses on hand, so you’re not caught scrambling or relying on personal loans to keep afloat. You’ll also need to account for startup expenses, such as business cards and association fees.

Master Networking and Capturing Leads

If someone plans to spend a large sum of money, they’re not going to trust just anybody to help them. If your strategy is to try to convince total strangers to hire you as their real estate agent, you’re not going to be successful for very long. It’s important to be consistent with capturing new leads and building relationships over time. That way, you can earn a prospect’s trust and eventually land a sale. This could take months or years, but it’s part of the job.

It’s also essential to maintain and nurture relationships with current and past clients. You never know if these people could be repeat buyers and turn into loyal clients. You’ll soon find out that it’s easier to sell to an existing customer than it is to a new one. Work hard to look over every listing and client you have available to you, and see if there are any good fits. Clients will appreciate that you took the time to show them new opportunities their busy schedules might have prevented them from discovering for themselves.

Apart from reaching out to clients, it’s also important to network with those in the industry. Finding a mentor at the beginning of your career can help accelerate your growth and put you on the fast track to success. Even finding like-minded peers can help boost your morale and provide much needed advice when you’re struggling. Your peers may even pass along leads if a client isn’t a good fit for them.

Never Stop Learning

Getting a license and choosing a brokerage is crucial to selling commercial real estate. Each state differs in terms of what you need, but you’ll usually need to take a written test and complete around 30 to 90 hours of courses. After that, you’ll need to keep renewing your license, a process which differs depending on where you live.

However, that’s not all you need. Most commercial real estate agents will tell you that continuing education is one of the keys to success. You’ll need to understand the latest trends and news regarding the industry. Reading relevant trade publications, magazines, websites and even talking with other agents can help keep you in the loop.

Clients are looking for well-educated agents who know the industry inside and out. If they’re going to be spending millions of dollars on a property, it’s only natural that they’ll want an agent who can answer their questions and know the latest information, such as changes in tax laws, construction permits, and up and coming locations.

The Bottom Line

Thinking about your career from the perspective of your client is essential. Having a focus can help you serve your clients better, as you’ll be able to give them what they want. Also, continually learning and networking are key to keeping a steady stream of leads you can nurture. That way, you’ll never run out of opportunities to make the sale.

It’s important to stay on top of the latest information from the very start of your career, in terms of both clients and properties. The research process never ends, because things change through the year in every property precinct, and you’ll need to stay ahead of the changes. Research is what allows you to see and move on opportunities, a skill which will be the backbone of your real estate success.