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Fox High School

Published on Oct 12, 2016

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PRESENTATION OUTLINE

Fox High School

Career Day

A Career In Commercial Real Estate

There are basically two Real Estate Professions, Residential and Commercial

Hal Hanstein, CCIM

Cardinal Realty Group was founded January 1, 2004.

As the say goes, “Experience is the Best Teacher”, I have 34 years of real experience, Leasing, Selling, Developing, Managing all types of Commercial Real Estate including; Managing a large Apartment Portfolio, Selling Apartment and Manufacturing Home Communities, Leasing and Selling Shopping Centers, Office Buildings, Industrial Buildings, Mini Storage, Warehousing and all types of Investment Properties and much more.

I Sell St. Louis

St. Louis Commercial Real Estate Broker
Cardinal Realty Group Sells St. Louis, I have been Selling Commercial Real Estate in St. Louis City since 2001. I have sold over $23,000,000 Million Dollars of Commercial Real Estate in the City of St. Louis Alone!

I have the contacts in City Hall to assist the Client in achieving their goals. Knowing your way around City Government is essential to a successful closing. From simple matters, like researching a deed to applying for occupancy permit to as complex as rezoning. Knowing the Right people in City Government and how the system works makes the difference in getting the deal closed. I have worked directly with all aspects of City Government from the Mayor’s Office to the Building Permit Office. I have facilitated transactions with the LRA, St. Louis Development, Board of Alderman and St. Louis School District.

Cardinal Realty Group Sells St. Louis Commercial Real Estate....We Get Results !!!

Contact Hal Hanstein Today !!
http://www.cardinalrealtygroup.com
hal@cardinalrealtygroup.com

Education

  • BA- Business Administration & Economics-Drury University 1974
  • MA-Real Estate Management Webster University 1997
According to a National Association of Realtor Survey in 2015, Seventy percent of Commercial Members have a bachelors’ degree or higher.
Photo by Herkie

Community Involvement

  • Past President Webster Groves Chamber of Commerce-1996
  • Recipient of Business Person of the Year-Webster Groves Chamber of Commerce-2000
  • Past Member City of Webster Groves Economic Development Commission 1998
  • Honorary Lifetime AARP Member-1998
Community Involvement gives you the resources, contacts, referrals that you could not get any other way. Community Involvement also provides you with the “exposure” to be recognized as an honest and knowledgeable person in the field of Commercial Real Estate. Without Community Involvement it is more difficult to get your projects favorable approval and helps you to navigate the sometime cumbersome systems established by state and local governments. The saying, “it is not what you know but who you know” that makes involvement in the community a huge leg up on the competition.
I have been Professional involved in the Webster Groves Community for all of my 34 years in Commercial Real Estate. I have successfully rezoned Residential Property to Commercial, assisted many of my clients in getting their business licensees, approvals from the Architectural Review Board and City Council and Property Inspections.
Photo by Philip Leara

Professional Realtor

Member National Association of Realtors
As a member of the National Association of Realtors and as a Certified Commercial Investment Member, CCIM has provided me with educational, professional and networking support continuously developing me into a better Commercial Real Estate Broker to represent my clients.

Being a member of the Realtors and achieving various designations is a great way to achieve "credibility" when you begin your career.

Career Paths

  • Radio Shack Manager-1977
  • Stix Baer and Fuller Assistant Buyer-1978
  • Fashion Gal-Manager-Junior Clothing Store-1980
  • Apple Computer-Area Sales Manager-Champaign Illinois 1981
  • Yorkshire Village Inc-Vice President 1983-1999
  • Lechner Realty Group-Sales Assocate 2000-2001
  • Commercial Development Company-Director of Leasing 2001-2003
  • Cardinal Realty Group-President 2004-Present
Most people I know, thought when they graduated from College and got that first job, that job was going to be their career. In fact that first job is just a stepping stone to the job that will be your career.
Photo by Mark Fidelman

What is Commercial Real Estate?

  • Selling and Leasing
  • Investment Sales
  • Property Management
  • Business Sales
There are two paths to real estate career....Residential or Commercial. The residential path is far easier to achieve. Most large residential realty companies have new agent training programs and the Realtors offer many career enrichment programs which give the new residential agent industry wide recognizable qualifications.

Commercial Real Estate is the representation of Buyers, Sellers, Tenants and Landlords. Once again, the Realtors offer many educational programs to enhance the value of the agent.

Investment Sales-Selling of Investment Properties-those properties are sold based on their value-ie Cap Rate, Lease Term (number of years) and quality of the tenant or company that guarantees the lease. Sometime these are called "Coupon Clippers" for the investor who wants to be hands off and simply collect a check every month. Current Cap Rates are typically between 5-7%, which is much higher than the interest received on a savings account.

Property Management is the managing of commercial real estate which includes all types of properties. Property management includes the administration of leases, collection of rent, repair and maintenance of the property.

Business Sales is buying and selling business to other owner operators and or investors.
Photo by davecurlee

Personal Requirements

  • Real Estate License
  • 18 Years of Age
  • Reliable Transportation
  • Outgoing Personality
  • Basic Computer Skills
The basic requirements to be a real estate agent are relatively easy to achieve. You must have a license to represent clients in buying, selling and leasing any type of real estate.

You must be 18 years of age. No criminal record for every agent in Missouri and other states are fingerprinted and verified on a national database.

Personal requirements include reliable transportation, an outgoing personality and basic computer skills.

When you are are real estate agent, you are working for yourself.....you only get paid when you perform.
You are an independent contractor and do not pay withholding tax. You are responsible to pay your own tax on your income.

You must be a self starter and motivated to succeed. As the saying goes, "the early bird get the worm".

To enter the field of commercial real estate, you must either "know someone" or intern at a firm. Usually there is no "formal" training program in commercial real estate, there are many classes, seminars and conventions that will help you further your career by giving you credibility.
Photo by CAFNR

Would You Hire Him?

Even Nerds Can Change-But How??
This was me 42 years ago. I graduated from Lindbergh-had no idea what I wanted to do when I grew up....and the next four years of my life at Drury College proved to be the best four years of my life.

Life experiences makes the career choices for you.

Remember you are who you associate with....pick and choose your friends wisely. The friendships you make in College will last a lifetime. The experiences will help to shape you into the person you can be.

Most companies when the recruit you out of college are interested in;

1. Your grads
2. Extracurricular Activity
3. Aptitude test

In my opinion for a career in sales such as commercial real estate, your grads are not as important as your extracurricular activity. The extracurricular activity will be more prominent on your resume like what school organization did you belong to? Did you have any positions of leadership? Intramural sports. Social organizations such as Fraternities and Sororities. What jobs have you had while in college and what were you responsible for at that job. And finally Character & Image....companies do not want problems, which mean drugs and any criminal record. When you work for a company you are representing that company and the way you look, dress and speak will carry alot of weight.

Personal Traits For Success

Patience
Personal traits include;

1. Your habits-do you take a bath???
2. Grooming-your hair, teeth and clothing
3. Type of car you drive...in commercial real estate you might be working with someone that is involved in a union. The make of your car could keep you from getting a sale.
4. Political opinion-Keep your opinion to yourself
5. Listen to your customer-get to know your customer-understand your customer needs.
6. The ability to take rejection-You must be able to overcome objections and ask for the sale. No one is going to hand it to you.

My final word of advise is watch what you see, post online, where you go and the people you hang out with....The world is watching and people "profile" .

One of my favorite sayings is "that you cannot take back the spoken word", so before you act on anything, think about it and make the right decision.
Photo by Bob A Fox

Life

Experiences Makes The Person
Life and what you do in life makes the person you are.

Like I said before...the world is watching. As we have learned in the recent presidential campaign, once you send an email-you cannot take it back and camera's are everywhere.
Photo by vl8189

Hobbies

Propel you to New Relationships
Hobbies are a great way that you can relate to a client. It gives you something "safe" to talk about.

People are interested in what you do, do you like sports? Go to baseball games, photography, gardening or even flying.

I have found that a round of Golf is one of the best ways to entertain a client-after 18 holes of golf you really get to know the person you are with and both you and your partner will make "judgement" about your character and ability to represent them professionally.

Swag

Confidence to Achieve
You got to have "Swag" Swag is self confidence.

First you have to be able to show the client that you know your job and that you do it well...education and professional designations is a great way to prove you are capable.

Secondly you need to be able to show what you have done-what have you sold or leased-the more you sell and lease properties the easier it gets to sell and lease more.

Third-you need to "Close the Deal" The fear of rejection is the worse fear of them all. If you are not confident when you ask them to sign on the dotted line-then chances are they will not.
Photo by Brett Jordan

Education

Liberal Arts Education
Starting out your education, professional designation and achievements are going to be your story.

Keep in mind in any real estate career you are advising and assisting people in making some of their biggest lifetime decisions.

A good education is a great way to show a client that you know what you are talking about and that you are a professional.
Photo by kevin dooley

Relationships

You Are Who You Associate With
The world is watch-Pick and choose your friends wisely.

Remember you are who you associate with. Everyone is watching and checking you out on Facebook, Linked In and other social media.

Life is not always fair, people are judgemental and everyone profiles by what they see.

Do not allow yourself to get into any compromising situation that can harm you.

Think out of the Box

The Sky is the Limit-Only Your Mind Will Limit You
For 19 years I managed commercial real estate in St. Louis.

That job came to an end, not by my intent and at 44 years of age, I had to ask, what do I want to do now that I have grown up again.

I felt safe and secure in what I was doing. But in life you get paid by risk and reward.

The sky is limit what you can do and achieve. You need to think globally.

Photo by KelseyFaust

Choices

Which Door Will You Choose?
Life is full of choices. Sometimes you do not understand why something happens to you...it takes time for you to understand why. Each choice you make-each door you go through is another choice. Pick and choose the door you go through carefully.
Photo by m01229

Worldly

Trafalger Square London 1976
Having a "world" perspective is a great way to help you round your life experiences. It give you a better idea of what may seem "strange" to you is normal to someone else. It give you a "perspective" on life making you more understanding of people and their culture.

Travel is also another way for you to tell your story to your client while you get to know them better.

Computer Skills

You have to embrace technology and change with it.
Photo by RLHyde

Analytics

You need to be able to analyze a property/investment to be able to advise your client. You are being paid based on your advice and the ability to do financial analysis, understand mapping and population trends, property condition, contract language and so much more.

Financial Analysis

In commercial real estate, financial analysis is one of the most important skills to master. The ability to compare one investment or lease opportunity to another solely based on "cash flow analysis" and which property has the highest Cap Rate or Internal Rate of Return (IRR)

Demographic Analysis

Demographics-how to make them work for you to show your client where his customers are and where will they be 5, 10 years down the road.

Demographics include, number of people, age, education, children, employment, homeownership, education, income, marital status and what they spend their money on.

Demographic Maps

Demographic mapping is a great way to visualize a market for your client.
Photo by SEDACMaps

Vocabulary

The Ability to Verbalize-Express Yourself
Your vocabulary-they way you speak and the tone of your speech are very important. You have to have a way to verbalize yourself in a way that shows your client that you know what you are talking about.

Remember-"You cannot take back the spoken word" so pick and choose your works carefully and properly articulate yourself without any profanities.


Photo by basair

Writing Skills

The Ability to Express Oneself
I would highly recommend that everyone take more literature and writing classes. When presenting a property you have to have the writing skills to sell the property, to put the spin on it so that it gets notices.

Photo by Damian Gadal

Research

On a typically listing I spend 1-2 days researching the property. I want to know the property as well as, if not better than the owner of the property.

Title Insurance

The ability to read a title policy and to research what the objections are is one of the most important tasks you have for an exception on a title policy can limit the use of the property for your client.

Photo by Thomas Hawk

Deed Research

It use to be, you needed to go to the county court house and research a properties ownership record including tax record. Now in most counties this information is available at your fingertips.

Photo by danxoneil

Assessor Maps

Assessor maps show you the property and the ownership of the surrounding properties. In most cases, your buyer is someone nearby.

Surveys

You need to be able to read a legal description which is found on a title policy and compare it to a survey. Remember surveyor's are people too and they make mistakes. As a professional it is your responsibility to verify everything that is reasonably possible.

Legal Documents

The ability to read, find and understand legal documents.
Photo by gjs

Appearance

Look the Part
As I said before your personal appearance creates your first impression with a client.

First Impressions

Look of Success
Let me ask you a question, if you were a client and interviewing an agent, would you not look at their dress and what they showed up in? If you drove up in a Bentley, the client will get the immediate impression that you must be really good to afford that car....

Starting out I recommend an American made car that is a late model and well detailed.

Stay Ahead of The Curve

Embrace New Ways
Also want to learn more. Keep taking classes, stay on top of new technologies.

Photo by hdes.copeland

Learn From Others

Know who your competition is
Learn from you competition and what other sales professionals are doing to attract more customers.
Photo by Alan Light

Commercial Real Estate Specialties

There are many types of Commercial Real Estate and each one requires its on understand of what is important.

Investment

Investment properties,

Cap Rates
Cash on Cash
Location
Age of Property
Demographics and Market Trends
Guarantor
Lease Terms
Competition

Risk and Reward go hand in hand.

Retail

In retail it is Location, Location Location.

But with the internet retail is changing faster than any other commercial real estate segment

Important factors when represent a retailer are:

1. Demographics
2. Competition
3. Traffic flow
4. Parking
5. Building depth/frontage
6. Ceiling Height
7. Ingress and egress
8. Lease terms

Industrial

Industrial. I have leased sold millions of square feet of industrial space around the mid-west.

Features to understand are;

1. Ceiling Height
2. Column spacing
3. Floor Strength
4. Construction
5. Docks, drive-in doors
6. Ease of access to major roadways
7. Population to employ
8. Permitted uses in industrial zoning classifications
9. Availability to rail, utilities-including size and cost of service for electrical, sewer, water, natural gas and internet.

Office

There are 3-grades of office, A, B and C

Grade A office is typically a newer, well managed property located in the CBD

Grade B office is typically suburban and of the quality for a corporate appearance

Grade C is simply down and dirty.

Factors important to an office user include;

1. Internet
2. Close proximity to business services including restaurants.
3. Parking and or Public transportation

There are many types of office which include;

General Office Space
Medical
Lab
It

ReDevelopment

Historic Tax Credits
Redevelop Opportunities require and understanding of Historic Tax Credits, construction cost, zoning and tax credits.

Property Management

Multi-Family
Multi-family including apartments requires the understanding of;

Demographics, age of the apartments, amenities of the communities, deferred maintenance, mix of units, pets, fair housing and so much more

Medical

Medical Office has it own special needs including;

Exclusive as to types of doctors allowed in building

ADA requirement

Plumbing, Electrical and other cabiling.

Special rooms including flooring.

A typical medical office has a reception area, a room where patient files can be securely store for confidentiality, lab space, exam rooms, X-ray and private offices for the doctors.
Photo by bookchiq

Data Centers

Data centers

Electric Service and Cost are the two most important thing when looking at Data Centers.

Data centers must have the ability to get electrical power from two sources, the amount of power a data center uses is typically more than an automobile plant.

Redundancy in electric, internet, alternative energy sources including natural gas for power generation, fire suppression systems, floor loads, column space, Air-conditioning and type of structure which is capable of surviving most natural disasters.

Warehouse

Features important for warehousing include;

1. Ceiling Height
2. Column Spacing
3. Docks (cross docks)
4. Driving in doors
5. Lighting
6. Turn radius for tractor trailers
7. Trailer storage
8. Rail availability

Some warehousing is special needs, ie "cold storage" and hazardous material storage.
Photo by Gwan Kho

Land

When looking at land for a potential client, you need to know where and the size available of the utilities, road access, easements, soil conditions, zoning

Multi-Family

Types of properties vary
Photo by Jay@MorphoLA

Mini Storage

Modular Homes

Photo by oatsy40

Current Affairs

Knowledge-Need to Know What is Going On
You must keep up with what is happening in your industry, city and state.

I read online papers from other markets (Chicago, KC, NewYork), industry and professional news letters, tax and legal letters and more.
Photo by Ogilvy PR

Marketing

My saying is "unseen, is untold, is unsold"

If I do not make the property "seen" and cannot talk about it and therefor cannot sell it.

Signage

Signage with a recognizable logo and colors which identifies your brand

Internet Ads

Internet advertisements, listing web sites, email blasts, web sites are all important to getting your property seen and to be able to find properties for you clients.

Flyers

Flyers are a good item to have on hand for showings. A flyer should contain all the information important to answer the customer's questions. I also like to include many photos to help the client revisit the property after the showing. A picture is worth a 1,000 words.

Community Involvement

Be involved in the community. Community involvement gives you recognition and respect.

Website

A must have is a web site. The web site needs to rank high on google

Business Cards

Typically a handshake and business card is the first impression you hand a client.

Articles

Articles that are about you or are interviews you have done give you credibility that you know what you are talking about.

Meetings & Seminars

Meetings and seminars including networking events are essential
Photo by K.Muncie

Close The Deal

Close the deal-Ask for the sale

Don't be afraid of rejection

Never Give Up

Never give up, it typically takes 3-impressions to make a sale. Start a good CRM program and constantly touch your sphere. Remember peoples memories are short and if you are constantly "touching" them, they will remember you and come to you or refer someone to you

How The Hal Are YOU??

I ask you, How the Hal are you !!!!