So a little background on myself, and a lot of you may laugh, but I’ve been in automotive sales for the past 5+ years but have always loved real estate. It genuinely interests me and I’ve worked with some CRE brokers that have told me I should look into it. I’m currently getting my real estate license, how could I leverage getting an opportunity? I run our internet department and spend 10-12 hours a day making phone calls and prospecting, negotiating, and trying to make deals so the premise isn’t too far off. I’m looking into taking some financial modeling courses as well to better prepare. Am I far fetched in thinking it wouldn’t be a crazy hard transition coming from commission to commission, bigger deals but substantially longer deal lengths? Thoughts?
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You're on the right path. I had a couple friends in undergrad who worked in auto sales and made a killing, although they said it was an absolute grind.
Keep doing what you're doing. Get licensed and do a RE Finance course or two. Read some CRE books. Begin studying the market you want to work in (and hopefully currently live in and want to stay long term) until you know it like the back of your hand. Once you have done some CRE modeling via the course, you can go on LoopNet and practice modeling proformas. A buddy of mine found a firm he wanted to work for and modeled out all of their listings on LoopNet and sent it to the senior partner, which eventually got him a job there.
Start networking with brokers. Find their emails on their websites and send cold emails for coffee/lunch. If you can make it in automotive sales you likely already have most of the skill set to be a broker. Search for some posts on this forum about how a career as a broker goes. If you don't know already, you'll want to have 1-2 years of expenses saved up.
Any CRE education is a great idea. Anything you can do to develop quantitative skills and general market knowledge/competency will help. Being at least conversational will help a lot with interviews and then you can continue to learn once you land a role. With a background in auto sales your upside is grit and phone skills, a perceived downside could be a lack of CRE relevant knowledge and (I mean absolutely no disrespect by this) a possible lack of "prestige"....especially at more selective firms. This won't at all keep you at all from getting hired and I only mention this as an opportunity for you to be cognizant so you can maximize your first impression. Your resume will show grit and sales skills...if your presence and communication demonstrate professionalism and an interest (and the aptitude necessary) to develop your financial skills, then you will be off to a good start.
Whether you can jump straight to a commission only role is entirely dependent on your situation and reserves. I'd have at minimum 6 months, ideally 12. You can offset this by landing a salaried role as an analyst or junior broker with some firms.
It would be helpful to consider which asset class you want to focus on. Research them all. If there is one that interests you more than others, great. If you know a guy who crushes it on a certain product type and he has interest in bringing you on, then that could make your decision for you. What is important is that you are aware of the different product types and don't walk into interview thinking all commercial real estate is the same...this would not reflect well. Some firms specialize in only one or two product types. Other firms are full-service. Almost every broker specializes in a certain area.
I'm a huge advocate of mentorship....especially for new brokers. You will learn exponentially more efficiently if you gain the attention of a well established broker whether it is formal or informal. You can formally target salaried positions or look to join an established team. You can also approach specific brokers and potentially work out informal agreements where you work under them and share a portion of their deals in exchange for dedicating some or all of your time to their business. You mentioned you had a few people tell you to look into the business. I would start there. If one of them happens to be an established producer they might be willing to bring you on, or they might know someone who has a need. If you have an advocate with some pull you will have a far easier time getting your foot in the door and will also have support from day one. That will pay dividends both initially and as you progress.
I know someone in RE Private Equity that’s helping me out. He’s a prior client of mine and pretty much the reason I’m finally taking the plung into trying. I think I’m mostly interested in office space, but I’m open to retail or multi-family as well. I’ve done a lot of research over the years into CRE and have wanted to, so I’d like to say I’ve at least scratched the surface. I appreciate your guy’s feedback. I like to think I’m not the typical “car guy”, or so it’s been explained. I’m in a suit and tie most days and carry myself differently so hopefully that helps with the introduction. So I should pretty much just start networking and see where it lands?
So are you trying to get into brokerage or REPE? Or using brokerage as a stepping stone? If the end goal is REPE you will want to be more selective about the roles you target (investment sales or capital markets ideally). Leasing won't transfer to REPE as readily.
Each of those assets have different characteristics and will require different expertise and skills. You should research and learn each.
Whether you are typical car guy or not is irrelevant, people from many backgrounds do extremely well in CRE. My comment was only to make you aware of the potential hurdle. Some firms won't care at all, more selective firms will. Know who you are interviewing with. Suit and tie is a good start but that is simply a qualifier that will get you no further points in an interview. The professionalism I'm referring to is more directly related to your presence which as someone new to the industry should be one of respectful confidence, competence, and an eagerness to learn/contribute/produce. I say these things as someone who has flubbed a few interviews before. When you're nervous, it is easy to focus on the wrong things. Be prepared and demonstrate how your past hustle and personal education has prepared you for a role at XYZ Firm. Show your interest and aspirations in CRE but don't over compensate or apologize for your past role.
A word of caution. CRE brokerage is a tough business. REPE roles are coveted and difficult to land even for very well qualified and pedigreed candidates. You are capable of doing whatever you want but make sure you do your research and don't jump in with blind aspirations of huge commission checks. It is a tough road and you can certainly get there but it will be a grind and you are starting from ground zero. Do your research and make sure you are targeting roles/firms/brokers that will help you get where you want to go.
I’d like to stay in the brokerage side. I enjoy the high level of sales and the process of selling, working with clients, being on the phone, etc. my guy just happens to be a partner in a REPE shop and said he can try to introduce me to some brokers. I appreciate all of the advice. What would be some good go to books to learn a little more?
There are a ton of threads on here for CRE reads. Just search. Ask your REPE contact for lunch or coffee and pick his brain. I'd focus first on at least being conversational on basic CRE concepts and the different product types. You don't really need a book for the basics, just research online.
Nobody will expect you to be an expert at first but you should be well-versed enough to convey that you have actually taken the time to learn about the industry and have genuine interest...be careful not to come across like you just admire a guy you sold a car too and don't have a clue beyond that. That's not all bad but you can easily show that you have more to offer with a little prep. Again, I mean no disrespect...this is just information to help you maximize your chances of success. You clearly have interest but preparation for meetings (casual or formal) makes all the difference, especially being new to the industry. Get your basic knowledge up and then network as hard as you can. First impressions matter.
Happy to help with specific questions if I can, feel free to PM. Good luck!
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