I received a heartfelt resignation letter yesterday from one of newest associates. She is the third departure from a class of six that we hired in 2012-2014...WOW...a 50% ATTRITION rate! In every case, the reasons for departure centered around a new position (not another brokerage firm) for which our new associates were recruited...Bullshit! I believe the reasons someone leaves the CRE trade fall into one or all of the FIVE below.
Shortsighted: I've actually experienced this in my own practice when it comes to the social media marketing of my CRE biz. In mid 2010, I believed that this SM stuff was here to stay and started blogging, tweeting, and all manner of media-ing socially. I am JUST now...five years later...reaping the rewards that an increased visibility through social media can create. It takes three to five times longer for the world to grasp your new initiative. My advice...if you start down a path, GIVE IT TIME to gestate!
No STAYING power: If you believe you can succeed...I mean REALLY kill it in CRE in fewer than three years, move to a state where recreational ganja is legal! Because, you are figuratively smoking it NOW! My advice...live at home, borrow from Grandma, eat rice and beans...something...that will allow you to make VERY little or NO money for three years.
Improperly or under trained: This is a biggie...are you feeling me Bo Barron and Rod Santomassimo? Most newbies are given a list of prospects to cold call without any CLUE how to do so. Folks, I know that is how WE were trained but the world is a different place. Voice mail, Spam filters, competition, experience, technology, CRE data available to EVERYONE, were not a part of the landscape when WHAM was together. My advice...if your company isn't providing you the training tools to succeed, BUY them yourself or switch to a company that does provide the tools.
Too wide or narrow a focus: Far too many CRE novices start out OK farming a geography or a building type. Then, they see a deal that the guy next door did in a different area or read about a HUGE sale that occurred in multi family and BOOM...the focus shifts. My advice...All real estate is HYPER LOCAL...PERIOD! Find a niche and STICK to it.
Shouldn't have been hired in the FIRST place! Want to REALLY disrupt the commercial real estate business? Design a probability of success metrics for new hires that we ALL can rely upon.
By: Allen Buchanan
Principal | Lee & Associates
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