Brokerage
Self-Made Success
By Gretchen Pienta |
In the commercial real estate world, bigger
isn't always better. Many commercial real estate professionals have
found success by staying independent despite a recent trend toward
business mergers and affiliation.
Contrary to popular belief, independent brokers don't necessarily have to sleep at the office to make ends meet. Commercial Investment Real Estate
recently asked three successful CCIM solo practitioners how they manage
to satisfy all of their clients' needs and still make it home in time
for dinner. Although the benefits of working for a large company are
ever present, independence offers freedom in both their business and
personal lives that these brokers can't resist.
John “Dede” Malmo Jr., CCIM
As
owner of Malmo Memphis Real Estate in Memphis, Tenn., and a member of
the Alliance of Tenant Representatives, John “Dede” Malmo Jr., CCIM,
exclusively represents tenants and buyers in Tennessee, Arkansas, and
Mississippi. Although competition in Memphis is tough, Malmo believes
his specialization sets him apart from the large companies.
Why did you choose this specialization?
I
saw a niche in the Memphis market that I felt could be developed and
marketed. It is hard for an independent broker or firm to compete with
the larger, national firms in the service end of our business and
because of that I felt the one area that I could build a brand was in
tenant representation. The Memphis market is not large enough to have
to specialize in one particular sector. I specialize in tenant
representation and represent clients in all phases of our industry from
retail to office to industrial to land acquisition.
How do you think being a solo practitioner helps you compete?
I
think being a solo practitioner actually benefits me in the tenant rep
business. Clients don't hire firms to represent them, they hire
individuals. They hire individuals who have a feverish loyalty to
taking care of the client and making sure they are treated fairly in
the lease process. My clients know that the buck stops with me. The
person that they are always dealing with at my firm is the person who
owns the company and is responsible for every phase of their
assignment. That is a definite selling tool.
How did you get started in the commercial real estate industry?
When
I graduated from Vanderbilt University in 1989 I went to work for
Browning Ferris Industries in the recycling division. After three
months I was laid off because recycling wasn't as profitable as
everyone thought it would be. I remembered a book that I had read, The
Art of the Deal by Donald Trump, and how it had peaked my interest in
the commercial real estate business. At that time I went to numerous
real estate professionals in Memphis and asked for 30 minutes of their
time to learn about their business and their specific jobs. I met with
developers, brokers, managers, and even one guy in the Holiday Inn real
estate department. Eventually one of them arranged an interview with a
Memphis real estate firm and I landed a leasing job with that firm.
What prompted you to go solo and why have you stayed solo?
After
being in the business for almost nine years and having worked for three
different firms, I felt the only way to create a niche in Memphis was
to go out on my own and build a brand. I created my own firm in
December of 1999 and have enjoyed the independence that I have to chart
my own course and pursue the business that I want to pursue.
You have written a tenant's guide to leasing commercial space. What inspired you to do this?
The
“Tenant's 10-Point Guide to Commercial Leasing” was written to help
educate commercial space users on some of the simple fundamentals of
leasing. I used it to market my business by mailing 10,000 copies to
businesses and individuals in Memphis every month for 10 months. The
response was wonderful, and it helped give me exposure to decision
makers that no other form of advertising or marketing could have
achieved.
Your business requires some travel. How do you run your company while on the road?
Technology
has allowed every real estate professional to become less market
dependent and I am no different. I am wired to my office through my
laptop and I have access to all my files and databases — regardless of
where I am. Operating the business while on the road is no more
difficult than it would be if I were in the office. Also, as the
Memphis partner of the Alliance of Tenant Representatives, I have
exclusive tenant representation partners in over 30 markets across the
United States, Canada, and Mexico that can assist me with assignments
in other cities and help make my time away from the office more
effective.
How do you think being an independent broker and company owner has helped your career and your life in general?
There
is a level of satisfaction that I have now as a company owner that I
might not ever have achieved working for a larger firm or being part of
a brokerage team. Every piece of business that you get as an
independent broker is a direct result of someone else's confidence in
you and your abilities, and there is nothing more rewarding than that.
Owning this business has helped me become focused and detail oriented.
I have a passion for making sure my clients are treated fairly. That
passion translates into business for the firm because every client and
prospect knows that if they hire the company they are hiring me. If you
are the company owner and you are the only employee of the company —
there are no excuses.
Elizabeth C. Belenchia, CCIM, SIOR
After
careers as a registered nurse and residential real estate agent,
Elizabeth C. Belenchia, CCIM, SIOR, started a commercial real estate
company, Carroll Properties Corp. in Spartanburg, S.C., specializing in
international corporate real estate and industrial investment. Although
she has researched affiliation opportunities, Belenchia remains
independent because of the flexibility it offers, both in her business
and as the mother of four children. It also allows her the freedom to
participate in international expeditions, such as the People to People
Real Estate Mission to the People's Republic of China.
Why did you choose international corporate real estate?
My
thought processes have always been global. I was attracted to
Spartanburg because of its international influence, and I developed a
thorough knowledge of my local market and how to research any market.
Corporate finance has always been an area of strength. In recent years,
my company has added telecommunication research as well as targeted
marketing and global environmental sensitivities to its total
information arbitrage package.
How do you think being independent assists or hinders you in the international real estate arena?
My
independence allows me to be very flexible and adaptable to the
dynamics of each transaction. It also allows me to direct my marketing
efforts toward my areas of interest rather than serving all clients
with revenue as a basis for growth.
Your business takes you all over the world. How do you keep in touch with clients when you are in foreign countries?
Communication
with clients and a holistic approach to their needs keeps me interested
in their projects. While traveling, my office responds to routine
issues, and I can be reached by fax and e-mail, which I answer in hotel
business centers or libraries throughout the world.
How do you think your travels have enhanced your career and what you can offer clients?
Traveling
enhances my career because it feeds my passion. People can tell when
you are excited about doing business with them, and it is difficult to
hide sincerity. Travel has made me a peer with my clients rather than
being a local broker.
You were the first
female to attain both the CCIM and the SIOR designations. How do you
feel association membership and continuing education help independent
brokers compete?
The designations provided credibility and
confidence for me with national and international prospects. The
variety of projects I have taken on requires not only continuing
education, but communication with national colleagues having expertise
in specific areas. I also have found designees to be more willing to
share information.
My early assignments came through referrals
from designees throughout the country. And continuing education and
conventions provide a format for personal and professional development.
I have been appointed to National Association of Realtors committees as
a direct result of conducting roundtable discussions at conventions.
Additionally,
local universities have sought my counsel on international issues. I
was a recent delegate to the Southeast United States/Japan meetings. I
serve on the South Carolina Jobs Economic Development Authority Board
and its private arm, Business Carolina.
What is your philosophy of business? Are you trying to make a lot of money or lead a balanced life?
My business philosophy parallels my life philosophy. The purpose of knowledge is action, and attitude is reality.
I
am trying to make a lot of money, because I have learned you are not
entitled to an opinion unless you have a solid liquid financial
position. In other words, “If you're so smart, why aren't you rich?”
However, I am greedy about balance and strive to integrate all those
success factors. Service to family, community, students, and special
projects provide personal rewards beyond money. Most projects, however,
require sufficient money to participate.
How do you think being an independent broker and company owner has helped your career and your life in general?
I
became independent by default. No one locally would allow a woman to
practice commercial real estate, so I opened my own office on July 4,
1976, and remain independent today. I was able to forge my own style
and procedures to offer the highest quality of service to clients. I
spent eight years as a single mother with four children on commission.
I was able to attend soccer games, school conferences, and provide an
enhanced quality of life for my children because of the professional
career I chose. I love the business, and now as an empty nester can
spend more time traveling and working — but now it is truly from
desire. I have attended the International Property Market in Cannes,
France, and have been a delegate to the International Real Estate
Federation's winter meetings in Monte Carlo, France. While there I
always make a point of visiting a local Rotary Club and see what the
club does for fund raising and service. Dining in local restaurants
helps me assimilate the culture. This keeps me interested in life,
business, and the variety of people I am privileged to meet.
Benedict J. Frederick III, CCIM
The
Frederick family has been a leader in the Baltimore commercial real
estate industry since 1916. Benedict J. Frederick III, CCIM, began his
career working for, and then running, the family company, yet he sold
it three years ago and started Ben Frederick Realty. He specializes in
brokering small to mid-size multifamily properties and investment real
estate. Affiliation would diminish the value of the well-recognized
family name, so Frederick has never seriously considered joining a
large company.
You started out working for
your family's commercial real estate company. What prompted you to go
solo and why have you stayed solo?
Running my family's
company — I ran brokerage, property management, and eventually was
named president of the company — took a lot of time away from doing
real estate work. I got too involved in the day-to-day operations and
spent less time with clients making deals.
The solo model is so
pure. My father raised me and trained me to always act in the best
interest of the client. I saw how this principle worked well for him
and learned of the benefits of following it for myself. I felt that
joining another company would compromise this principle. I do not have
to worry about pleasing some manager or toeing the company line. I only
have to worry about pleasing my clients and my wife.
What is your marketing philosophy and how do you accomplish it?
My
philosophy is to provide the prospective buyer with enough information
so that they can make an intelligent decision to purchase a property.
I
do everything I can to keep my name before my client base. I send a
calendar to my clients around Thanksgiving. I send postcards every six
to eight weeks either advertising something currently for sale or
something that I recently sold. I put my sign up whenever I can. A sold
sign is my best advertisement for effective real estate work.
My
Web site is a big part of my marketing strategy. My Web address is in
every ad and on every sign. The Web site has detailed information on my
property offerings. If someone asks about a property, I offer to mail
or fax them information or suggest that they look it up on my Web site.
This helps me be more productive and provide a better service to the
customers by getting them the information that they want and need
quickly and without a lot of hassle.
Your next-door neighbor occasionally helps you out. How did this get started, what does she do, and how do you compensate her?
We
were just talking one day and she said she used to work in a real
estate office. She has two kids, and she does not want to work outside
the home, so I asked her if she would help me.
She does
property research, which involves looking up tax records, verifying
utility expenses, calling the zoning office to verify zoning, etc. I
order postcards and give her the labels and she mails them out. When a
contract is signed, I give her the contract and she makes copies and
mails them to the buyer, the seller, the lender, and the title company.
She also copies and delivers the pertinent documents such as the leases
and environmental reports.
She bills me for time and material
once a month as an independent contractor. Her fee is a reasonable cost
to me and a good source of extra income for her — without being tied to
a set schedule.
What are the advantages and disadvantages of working out of a home office?
By
having a home office, everything is in one place. My kids are
teenagers, and working at home allows me to monitor their comings and
goings.
The disadvantage is not having a conference room in
which to conduct business meetings. Mostly I meet people in coffee
shops and restaurants or at the property. Lately, I have taken to
having clients meet me at my home, and we sit in the living room and
conduct business. I use a laptop computer with a wireless network so I
can generate and print documents. Most of my clients are
entrepreneurial, as is typical of the apartment investment business, so
they do not seem to mind conducting business in my living room and
actually seem to enjoy the more casual atmosphere, including getting to
meet and interact with my kids.
How do you think being an independent broker and company owner has helped your career and your life in general?
I
have never been happier in my life. I love what I do. I am in control
of my time and my life. I love being around my kids. I love real estate
and working with clients. I like not having to worry about making
payroll or whether the secretary or bookkeeper showed up. I like being
independent. I like being able to use all of the skills and experiences
I have had and working with clients to help them achieve their goals.
My clients appreciate the experience and perspective I bring and they
keep coming back to me.
What is not to like?