[Note: To follow is an excerpt of an interview with Dr. Jim Gillespie, America's premier commercial real estate coach, with over 25 years of experience in commercial real estate as both a successful agent and manager. To listen to, or download the show archive MP3, go to www.IncomePropertyInvestmentTalk.com.]
Mosca: What exactly is a commercial real estate coach?
Gillespie: It's basically someone who works with a strategy and a game plan and a system of accountability to help commercial brokers and agents achieve better results much faster than doing it on their own. People who are producing good-to-great results already in commercial brokerage are the ons typically interested in working with me because they are driven to do whatever it takes to move them to the next level. Having that open-mindedness to be willing to look at new ideas, to work with somebody to get you on a system and a game plan with the accountability will move you to the next level if you take the action on them.
Mosca: When looking at commercial real estate agents, what are some of the other characteristics you see in the students who do well with coaching?
Gillespie: The most important underlying ingredient, the one thing that I can not instill and put in somebody myself, is the strong, unyielding drive to do whatever it takes -- ethically and morally -- to become successful in the business and to have that drive constantly present. Top-level commercial brokers are driven constantly to move beyond where they are at right now and find the next transaction they have yet to locate. A lot of brokers will get focused on working on the transactions that are on their plate right now and they'll forget to do lead generation and do their prospecting and close transactions and leave a hole in their pipeline.
Mosca: What are the five most important activities of top commercial brokers?
Gillespie: Number one of the five important activities for top commercial brokers is prospecting 10 to 12 hours every week. Number two, sending out mailers to your clients and prospects two or more times every month. Number three, having a database that includes every prospect you want to do business with, their individual names, phone numbers, the properties they own or occupy, and their mailing addresses. Number four, building great long term relationships with your past clients, taking them to lunch, socializing with them, and giving them gifts two to four times a year. Number five, working on your presentation skills so you continually improve them and deliver the best presentations of any broker in your market.
Mosca: Why prospecting?
Gillespie: Prospecting is the lifeblood of the industry. If you do the prospecting, you're going to find great leads. The problem is a lot of brokers will prospect until they get busy with activity, then they'll drop their prospecting and start to follow up on closing transactions. That leaves a big hole in their pipeline. You have to prospect 10 to 12 hours a week no matter how busy you get. When you keep prospecting you'll find newer and better leads than some of the current marginal leads.
Mosca: What about the prospect that feels they are being contacted too often?
Gillespie: As a broker when you do your prospecting you're going to call people, some who want to talk to you, some who are indifferent, and some who flat out will be angry and hang up the phone on you. You just have to realize that's all a part of the prospecting. Brokers lose sight of the fact that not only are they talking to the prospect, but all of their competitors are too. The key is to get the prospecting done no matter what.
Mosca: With all of these positives to prospecting, why does it not get the respect I should?
Gillespie: We are talking about a business where if you dig up one lead out of 10 that's going to be enough to make it a tremendous year. At the same time, you have to deal with nine people that are somewhere between indifferent to totally not wanting to talk to you. As much as we say it's no big deal, unconsciously who wants to get rejected nine times out of 10? You have to be willing to talk to people you don't know and be willing to take rejection to find the people that will make you a ton of money. That's a skill set that every single day as a commercial broker you have to be willing to overcome.
Mosca: Number two of the top five important activities of top commercial brokers is mailing. How often should you do mailings?
Gillespie: Yes, number two is sending out mailers to your clients and prospects two or more times every month. Mailing on the commercial side is minimal or nonexistent. If you're mailing to them twice a month or more, that's 24 times a year they get to see your face, your image, your information and mailing is socially acceptable. You'll be branding yourself in a marketplace against competitors that probably aren't doing any mailings at all.
Mosca: Your third activity is maintaining a solid database. Can you talk about the technological aspects to maintaining a database?
Gillespie: The database creates the platform for you to contact all of the prospects you want to do business with, their individual names, phone numbers, the properties they own or occupy and their mailing addresses. There are subscription services where you can get in there and get unbelievable information for who the principles of companies are, how to contact them, their phone numbers, et cetera. This is a perfect project for an assistant or a part time virtual assistant to get in there and utilize this information and put together the impeccable database that you want to be using.
Mosca: What is top activity number four?
Gillespie: Building great long term relationships with your past clients, taking them to lunch, socializing with them, and giving them gifts two to four times a year. This goes a long way to create a feeling of “wow” we have this ongoing relationship and this commercial broker cares enough to remember me and send me a gift.
Mosca: What is the fifth and most important activity of top commercial brokers?
Gillespie: Working on presentation skills so you can deliver the best presentations of any broker in your market. The presentation skill is maybe the most overlooked opportunity in commercial real estate brokerage. I recommend that brokers have somebody sit in as a decision-maker and role-play and videotape their presentation. It's an extremely powerful process when you do it.
Mosca: Jim, any last thoughts or a golden nugget?
Gillespie: Everything you've ever wanted for your results and success in income in commercial real estate brokerage is out there waiting for you to make it happen. It is a matter of taking action and doing something different than what you've already been doing.
