S.E.C. Real Estate Observer

I had a disturbing conversation with a 35-year-old small businessman yesterday. He confirmed what I have observed. We seem to have produced a generation of young folks who have little desire to own and build their own businesses.

After six active and profitable decades buying, selling and developing commercial real estate nationwide, it’s past time for Colby Sandlian to sit back and enjoy the fruits of all that labor. Not a chance, scoffed the 79-year-old operator dubbed the Yoda of commercial real estate by his Wichita peers.

Knowing the client is one of the major keys. This takes time and preparation. Finding out what is important to the client, and not you, is critical. By approaching the client in this manner a rapport and a relationship is established. This relationship involves establishing an orderly way to address the client’s needs and solving the “problem” the client is experiencing. In order to achieve the relationship one must delve into the client’s past, their current state of affairs and what they expect in the future. This allows you to understand the entire picture of the client’s circumstances. Understanding the total set of circumstances surrounding the client provides us with the information we can draw upon to formulate, create, and design a feasible transaction.

With the success of Harry Hustler’s debut as a speaker at a recent state NAR meeting, which he was invited to share and impart his long tenure real estate wisdom, Harry was asked to remain for a more e intimate round table discussion after the main festivities. Harry, uncomfortable with the modest notoriety, was however heartened that this extension and further definition of his business philosophy in the hope that it may help some looking for a new and different perspective to incorporate into their brokerage and real estate repertoire.

If you research real estate websites you will find that some are pretty good. Others are not so good, and almost every site could do more to improve search engine visibility. Everyone should care about their website because it is a reflection on you. It works for you 24 hours per day, 7 days a week and 365 days a year. Hosting costs are minimal. Once the site is up and running, incremental costs are low. For a potential client, it may be the first impression they have of you. The impression your website makes is under your control and direction.

Many years ago I was returning from a real estate exchange marketing session in Acapulco, Mexico. An exchangor from San Jose California told me about a policy his firm had developed concerning new listings. Their listing agreement required the seller to provide their firm with a current Preliminary Title Report (Prelim) in many states called a Commitment To Insure, at the time they listed the property. This report shows any liens of encumbrances on a property, items which are vital to know about when marketing or transferring title to the subject property. Some of these items can affect the priority of a mortgage on the property as well. In California most title companies will honor the cost of a Prelim for up to two years and credit its cost against the premium paid later for the title policy.

Harry Hustler, as he had done countless mornings before, stirred a little sugar into his first cup of Starbucks “high test” and opened his Wall Street Journal to purvey the business happenings of the day. The news remained bleak. Bernie Madoff gets 150 years in the crowbar hotel. GM can’t quite figure if it is a car company or a political operative. Iran is suppressing the masses. Unemployment continues to rise. Real estate continues to take a hit. Harry read on, getting his morning elixir of the economic mess our politicos, bankers and Wall Street friends have showered upon all of us within the last couple of years. However, in the economic strife-torn malaise of doomsday prognostications, Harry has remained comfortable in his circumstance, but unsettled by the unrest.

Last edition, I wrote about being positive, communication with your lenders and partners, brainstorming at S.E.C. meetings and with your acquaintances, figuring out what works in a recession and upgrading your skills. This edition, I want to concentrate on personal development, focus, and time management.

As we all know, it’s hard to fly like Superman not only when your cape is on fire, but when you have a portfolio filled with Debt laden properties that are ready to hit the proverbial lender graveyard. Historically, Debt has undermined many great fortunes. Among our founding fathers, Jefferson, Adams and Franklin, (and most of the other founding fathers) experienced the continual and unrelenting anxiety associated with maddening Debt.

Over the last several months, we have seen some of the most dramatic economic changes in many years. First the housing market fell apart. Then the big Wall Street firms started to drop like flies. The lenders, banks, and insurance companies all started having trouble. Now the auto manufacturers are going under. What’s next? I certainly don’t claim to know, but looking at our history might give us some direction — and some reason for optimism.