You’re about to discover 3 things to look for in a commercial real estate coach. All successful commercial real estate investors have a coach. When I got serious about owning commercial real estate, I sought coaching and it drastically accelerated my results while shielding me from the pitfalls. In this training, you’ll learn who needs a coach (and who doesn’t), why you need one, when is the right time to hire one and what to look for to find the perfect commercial real estate coach.
Who Doesn’t Need a Coach
There are some people that may never need a commercial real estate coach. If you are a business owner in search of a property for your business, such a restauranteur that is tired of leasing and wants to own the building that the restaurant is located, you could hire a commercial real estate broker to help find the perfect site. Or maybe you just inherited a well performing commercial asset that already has the right management in place? No need to hire a mentor if you already own a great deal. These two types of people can avoid a mentor altogether. But for everyone else, a coach is an essential ingredient to success.
Brokers are Not Coaches
Some novices mistakenly assume that a commercial real estate broker can take the place of a coach. After all, a broker can help find, negotiate, structure and close the deal, he/she can refer you to financing options as well as help connect you with a property manager. In fact, we have some helpful resources on choosing the right commercial real estate broker. However, brokers have a fundamental conflict of interest that disqualifies them from being a coach. Brokers only get paid when you buy (or sell). They do not get paid if you decide not to buy (or sell). Regardless of what they may tell you, they are financially motivated to convince you to complete the transaction, even if it is not in your best interest. Since their financial incentives are mis-aligned from you, they cannot be a trusted advisor for you. Furthermore, there is another inherent flaw when working with brokers who have enough experience and wherewithal to invest in commercial real estate. If they come across a great deal, they are going to acquire it themselves before ever letting you know about it. In turn, only the second-rate deals (that they pass on) will ever be presented to you. Therefore, while establishing relationships with brokers may provide some value in your investing career in certain situations, they are not coaches.
Who Needs a Commercial Real Estate Coach
Every one who wants to be a successful commercial real estate investor needs a mentor. Commercial real estate is a vast body of knowledge, full of pitfalls and ripe with tremendous opportunity. You simply cannot afford to go down this road alone or you will either suffer massive losses from rookie mistakes or from opportunity costs of missing out on what you didn’t know. Furthermore, mentors reduce your learning curve by decades because you get to learn from the experiences of others, rather than from your own experiences. Life is too short to have to learn everything the hard way. By leveraging the power of having the right mentor, you can achieve in a few years what most people couldn’t accomplish in a lifetime. That’s why everyone who wants to be a successful commercial investor needs a mentor.
The Right Time to Hire a Coach
In 2012, I began doing triathlons, but soon discovered that I was struggling with the swimming part. Some friends suggested that I get a coach but I wasn’t quite serious yet about improving my results. Eventually, I became sick and tired of not making any more progress and I hired a triathlon coach. Her named was Rachel and she was a personal trainer that was a phenomenal athlete that had been running triathlons her entire adult life. We started working together and thanks to her tutelage, I actually was able to work out less, drastically reduce my times and had much more fun doing triathlons. When did I get a coach? When I was serious about improving my results. And it’s the same with you. If you are content with where you are, then there is no need to hire a coach. But as soon as you get serious about improvement, that’s the right time to get a coach.
3 Things to Look for in a Commercial Real Estate Coach
1. Commercial Real Estate AND Coaching Success Track Record
Since commercial real estate is the most lucrative financial endeavor in economic history, there are plenty of investors with a track record of success. However, very few also have a track record of success with coaching others in commercial real estate. In fact, that is a rare combination. Coaching requires a gift of teaching and a passion for helping others in addition to having a very skilled expertise in the subject matter. Establishing a track record of commercial real estate success can be done simply by the portfolio the individual owns. The evidence of a track record of coaching success is proven by examples of successful students. When you have both a track record of commercial real estate and coaching success, then you have the first important ingredient.
2. Available
You need a coach that is available. And that starts with working with a coaching team. A team of coaches gives you the greatest chance of availability because even the most accessible person is still limited. A team of coaches is better for you too because you can benefit from the strengths of each individual. Furthermore, a team of very smart people working together can accomplish more as a team than as individuals. Teamwork makes the dream work.
3. Mutually Aligned Interests
You and your coach must have mutually aligned interests. Unlike a broker that has an inherent conflict of interest (because they are only paid when you buy or sell), your relationship with your coach needs to be such that when you benefit, the coach benefits. Each party needs to invest into the coaching relationship upfront and then each party needs to win or lose based on the results. Our Protege Program was structured with this exact requirement in mind. The Protege invests upfront to be coached by our team and we commit to being available to coach that person (along with providing tools, resources, trainings, etc). Therefore, both parties invest into the coaching relationship upfront. Then, we share in the net profits 50/50 so the coach only wins when the Protege wins. This simple arrangement is paramount to a healthy and productive coaching relationship.
Where to Find the Perfect Commercial Real Estate Coach
You’ve already found the perfect coach! It’s right here in the Commercial Property Advisor Protege Program.
