In commercial real estate just as with any business transaction, time is of the essence.
In fact, we learn that in real estate school. It is the hallmark of a any sales and marketing professional and the mindset is essential to effectively closing deals.
Through my own trial and error I have learned that as time ticks away, so does the momentum or “Deal Velocity”! Even my valued mentor, Theresa Schulz would drill this into my head over and over again. Theresa believed this was a crucial aspect to making the deal. Thanks to my mentor, Theresa for teaching me the various ways to work towards making deals happen and for teaching me this as my first lesson, when I joined her 2 years ago. Theresa has taught me various ways to be a better broker and a “closer” by maintaining that necessary “Deal Velocity” to give our client the best chance at closing! I am proud to share Theresa’s Rules of Deal Velocity with you and would love to hear what rules you may have learned from your mentor!
Theresa’s Rules of Deal Velocity
Meet with your prospects as soon as humanly possible. If a prospect is on-site and they call you from their car, jump up and run as fast as you can to meet them or find a way to have a runner available to give them access. Meanwhile you are on your way while they are looking around. But for goodness sake do not make them wait.
Example: I had taken over a mixed development years ago that wasn’t having much activity. In the first year I had completed a number of deals. The only way this was accomplished is by me driving there and asking the prospect to give me 15 minutes, I was on my way! I believe capturing that prospect was the key to my success for that shopping center owner.
Instill Urgency in Client I also kept on top of my landlords to not delay in responding to offers and did my best to set up every scenario, in advance, to get some parameters upfront. Once you have a ready, willing and able tenant do not make them wait days or weeks between decisions. Remind your client how much money they are losing each hour they delay. But, most important, be sure your client knows the risk in losing a tenant at the onset of the relationship.
Talk to your client constantly. Keep in touch with your client as well as the prospective property broker as much as possible. It is especially true when dealing with a start-up business or a new retail concept, as the lines of communication must stay open. When it starts to get quiet, you know something is wrong. When your client stops returning calls, you know you are in trouble.
Momentum is Key
Economics of the deal are obviously the driving force of getting execution, but as a broker, it is our job to keep the momentum of the deal progressing. It is in your court to hit the ball over the net or get to the finish line or whatever sports analogy works for you! But no matter what, get that deal closed and remember Theresa’s rules of CRE Deal Velocity!
Photo Credit: “Business Hand Shaking” by bplanet Source: freedigitalphotos.net