Failing as a Commercial Real Estate Broker

As the credit crunch squeezes the sleeper-hold on the commercial real estate market, thousands of brokers are struggling to stay in business… and thousands have already called it quits.

But what if you’re somewhere in between doing well and calling it quits?  What if you have a couple of months of reserves and the prospects of closing a deal are not good before you run out of cash?

Should you take a side job to support yourself while commercial real estate makes a comeback?

After all, what do you have to lose?

The answer is everything!  And here’s why…

Commercial Real Estate Broker or Nothing

There is one immutable law when it comes to success in anything, including commercial real estate brokerage:  you will only make it if you’re 100% committed to the outcome.

Anything less than a 100% commitment — even for a minute — sends any number of deadly messages to your subconscious:

• I wasn’t totally serious when I got into commercial real estate brokerage
• I’m not really qualified, capable, or smart enough to figure this out
• It’s OK to quit - there are no other options
• I’ll make it in some other field

If you read these messages and thought there’s nothing wrong with them… then quit reading right now, quit your position as a commercial real estate broker, pack your bags and go home.

You’re not cut out for commercial real estate brokerage — or any other work that rewards people for their results.

Commercial real estate brokerage is not for the faint of heart… it’s not for quitters… it’s not for sheep.  Anyone who has made it in this industry can tell you that successful brokers do not even consider failure as an option.

Successful brokers burn their ships when they get to the enemy’s shore.

It’s success or nothing!

Think & Grow Rich, Not Quit & Grow Rich

Think & Grow Rich

This is such a critical factor that Napoleon Hill dedicated the very first chapter of his monumental book on success, Think & Grow Rich, to this topic.

Chapter 1, titled Desire, describes why the first step towards success is putting everything — all your efforts, resources, and focus — behind one goal.

There are several reasons why this is so critical. Here are three not-so-obvious ones:

1. Absolute focus on a singular goal increases your mental acuity, so you will be able to recognized opportunities from a mile away.
2. Singular commitment helps you build momentum.
3. Total commitment forces you to tap all your resources toward accomplishing your goal

This last point is very important…

Only by committing all your resources toward accomplishing your goal will you have a chance at succeeding.  If you allow yourself an “out”, then you are not really forced to figure out how to solve the tough problems.  You can just quit.

This is also one of the reasons why the very last message I mentioned above (I’ll make it in some other field) is never going to happen if you quit as a commercial real estate broker when the going gets tough.

You’ll just do it in the other field, too, when the going gets tough!

You Can Make It As A Commercial Broker

So what do you do if you really are hitting the bottom… if you really are just a couple of months away from financial failure?

Here are some suggestions that might help you make it through the slow-down as you recommit to commercial real estate brokerage:

(NOTE:  Keep an open mind as you read this.  This is not a comprehensive list… it’s just meant to get you thinking in the right direction.)

• Is there anyone in your sphere of influence (family, friends, colleagues, classmates, neighbors, pen pals) that might be able to give you a personal loan?  You’re not looking for a hand-out here, just a loan.
• Is there any way you could get an advance from your firm until you close your next deal?
• Could you buy other quitters’ databases and tap their contacts for fresh business?
• Are there any side deals with other service providers (contractors, attorney’s, escrow companies) you could work out for a referral fee?
• Is there any way you could do a joint venture with someone who could use access to your database?
• Can you earn income by becoming the expert in your area (speaking, writing, PR, networking)?
• Is there any way you could partner with others to form a team of brokers who work together for mutual benefit?

What other options can you think of?