S.E.C. Real Estate Observer

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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. This information includes, but is not limited to, the financial condition of the client, their asset base and the accompanying details, what they are willing and/or capable of contributing to the transaction process, and what the client is willing and/or capable of adding in terms of cash and/or equities to a transaction. Armed with the above information, we are equipped to initiate intelligent transaction proposals. We can become, and present, the TAKER!

One cannot get from here to there without there being a TAKER involved. It is imperative to have the client understand this concept. It is incumbent for us to “package” the client’s property, whether it is real estate or cash, so we can not only initiate transaction proposals that are likely to lead to a closing, but to present the asset(s) and the client so as to act as a magnet in order to attract a TAKER. Once we become a TAKER, or have a TAKER for what we present, we can commence to transaction making process. At marketing meetings, TAKERS are defined as a written document often referred to as a “mini”.

Now comes the critical component, the presentation of transaction proposals or the TAKERS. Please note that I choose to call these written TAKERS as transaction proposals, opportunities, ideas, and options to current ownership, NOT offers! If we tell the client we have generated offers for them, they develop a whole different mind-set than if we refer to the written document as a transaction proposal, opportunity, idea or option to current ownership. The client begins to believe what has been presented or received on their behalf, their asset and circumstances, as of greater value than they actually may be.

The most effective manner to present a written TAKER or transaction proposal is to first restate and remind the client of their needs, goals, and what you have accepted that can be achieved realistically. Next, it is beneficial to conceptualize what is written as a TAKER document, the transaction proposal or “mini” so the client can understand and digest the concept in conjunction with their needs and goals. Then, provide the client choices. They can either:

1. accept the transaction proposal as written.
2. modify the transaction proposal, in other words, counter it.
3. pass it on to sources or contacts they may have, or
4. reject the proposal with an explanation as to why, under any circumstances, the transaction proposal will not work for them.

Of course, there are a number of transaction proposal presentation pitfalls. They include:

1. not having sufficient research available on the opportunity for the client to render an informed decision.
2. not restating the reasons that the client is motivated or the objective to manufacture a transaction.
3. not reminding the client as to how the proposed transaction addresses their motivation and/or can be structured to provide a viable solution for them.
4. not having the client prioritize the written TAKERS or transaction proposals.
5. not involving or engaging relevant third party influences.
6. not having all decision makers present.
7. allowing the client to summarily dismiss proposed transactions.

An effectively prepared and conducted TAKER or transaction proposal presentation session will result in a more in-depth knowledge about the client, participation on the part of the client and the discovery of new and useful possibilities.