The bad news about commercial real estate? Any talk of get-rich-quick schemes is probably bunk — this industry takes hard work, knowledge, and patience. But if you're looking for good news, income streams in this business come in many shapes and sizes. Outside of the typical brokerage approach to CRE, consulting and investing are two options that could help you diversify your business and strengthen your ability to survive and thrive in markets of all varieties.

Patricia Lynn, CCIM — the principal/founder of Lynnk, a commercial real estate consultant company, and ExceedCE, a continuing education firm focused on real estate — knows how to prepare CRE professionals to become active in these endeavors. As the instructor of Building a Commercial Real Estate Consulting or Investing Business, a new course from the CCIM Institute, she has insights into dos and don'ts when transitioning from the broker contingent fee revenue model to a consulting and/or investing approach.

“Most brokers have a consulting mindset,” she says on a recent episode of Commercial Investment Real Estate podcast. “The question is, what are the distinctions between acting as a broker and actually charging for your services as a consultant? The typical brokerage model doesn't allow us to dig deeper into many of our clients' needs. While good brokers do that anyway, there's an expanded amount or level of service that you can provide as a consultant.”

Earlier in her career, Lynn worked with a Chicago-based firm that was exploring an entrance into corporate services. This approach let her team take a deep look at companies and see what they needed and how compensation would be structured. For brokers, when analyzing what is required by a client, they often discover needs that exist outside the normal contingent fee. Lynn sees this as a natural next step for CRE professionals looking to broaden their offerings.

“You can get into consulting by moving over into doing market studies, relocation studies, deeper financial analysis — more than we would normally do as a broker,” she says. 

For investing, Lynn emphasizes the importance of developing an understanding of a particular market that allows you to see value in potential investments, all while avoiding the appearance of competing with your clients. 

“You need to develop some understanding of the market,” she says. “[Exceptional] financial analysis requires a little bit of time and seasoning under your belt to understand what a good investment looks like, how you'll be planning to execute, manage the investment, and what your exit strategy is.”

For more insights from Lynn, listen her episode on Commercial Investment Real Estate podcast. Also, will be held periodically throughout the year, with  the next online course scheduled for May 1 and 3. Be sure to check back with the CCIM Institute for upcoming courses.