Why is it that some people just don’t make it as a real estate broker? Is it in their blood and what is it that they do to make things go wrong? In this video, we talk about the impediments to being a successful broker.
This is the second video from my interview with Michael Sheinkop at the Newark Grubb Knight Frank National Industrial Conference in Chicago last September,
The first impediment to success that Michael mentions is complacency. I think that this is a biggie. To watch the first video, go to https://www.youtube.com/watch?v=4zoC_IIGqrk
But first, a little story about complacency, not in this video.
My wife has been an executive recruiter for over 22 years. Early on, on occasion, she partnered with a friend who was primarily responsible for acquiring the clients while my wife was responsible for delivering the candidates. It usual took a month or two to close the deal. Upon closing, just like in real estate, my wife and her partner received a pretty hefty commission. Making the deal only motivated my wife to work harder and put another deal together. Her friend, on the other hand, would celebrate and take a month or two off before the money began to run out and then he would start working again. He was unreliable, inconsistent and underperformed. After a while, the clients began to work exclusively with my wife.
FAILURE TO COLLABORATE
The failure to collaborate is the second impediment to success. I know there are a lot of lone wolfs out there who have been and are very successful or appear to be. But even the lone wolfs have to work with other brokers, often. If you are uncooperative, unwilling to share and get along with others in your business, you are likely doomed to mediocrity. In this video, I don’t think that Michael is really talking about collaborating with brokers outside of your own organization. He is talking about teaming up with other, trustworthy and highly competent individuals, both within and outside of your firm. It was just last night at a Tech Angels meeting that someone said that investors rarely invest in the lone entrepreneur. They look for people who know how to and surround themselves with highly competent people. I was reminded ten (10%) percent of 10 million dollars is a lot more than one hundred (100%) of $100,000. For my part, I love working with highly competent people.
FAILURE TO ADAPT TO NEW TECHNOLOGIES
Technology makes the world move faster. Deals startup and move at a pace that previously was never dreamed of and technology is the main driving force of this increased pace. We have the ability now to access and understand more data in one year than most people experienced in a lifetime, just 30 years ago. While you may want to remain comfortable in the old analogue ways, if you hope or expect to be competitive 5 years from now, you must start getting comfortable with new technologies today. It will take time, but that’s the point. You will be ready in time. If you wait 5 years to start, you’re already done.
LACK OF ETHICS
I added ethics as an important factor for success. No, I am not just saying this because it is politically correct. The lack of ethics may not have a negative effect on “a” particular deal, but over the long term, the word will get around and you will not be doing as many deals as you should be. Despite your other great qualities, people will know you primarily for your negative qualities, the lack of ethics being one of them.
Howard Kline has been an attorney and businessperson for nearly 40 years, the founder and host of CRE Radio & TV and an early adopter of technology and social media. He can be reached at our website, at http://creradio.com/.