With stocks bouncing all over the place, the US housing market in a perceived bubble, and rising interest rates, things are looking shaky. What does this means in the commercial real estate industry?
Economic crash – Let’s be doomsayers for a minute and say the US economy crashes – it happens a lot! I remember the 2008 crisis quite clearly. Banks tightened their purse strings to levels where not even seasoned investors could qualify for a loan. Investors were staring at low prices hungrily but couldn’t get funding. That’s the real danger in commercial real estate. When lenders stop lending.
Good news, it hasn’t crashed yet! Let’s take a step back from our media induced panic and look around. Today, banks are still lending freely, interest rates are still a great deal, and real estate is being traded at a fast pace. Today, things are good. Today, the money is still rolling in!
Get thinking. If your main business is real estate investors, start thinking about how to attract some landlord rep and/or tenant rep business. The commercial real estate buyer/seller specialists were hit the hardest in the last recession. Office, retail, and industrial buildings had the regular coming and going of new business – a bit slower, but it was active. The investor rep specialists were trying to match hungry investors with tightfisted lenders to no avail. This doesn’t mean you should throw away your Rolodex. Instead, start thinking about the possibility of expanding your business.
Hedging your bets. I’m the biggest believer in laser focus specialties, but it doesn’t mean you can’t expand. Keeping your specialty will be key in riding the bull market back up, but during a bear, you may want to consider diversification of your lead generating methods.
Get a website. If you don’t have your own website, now is the time to get that ball rolling. Buy one NOW, while your income prospects look good. You have no idea what’s going to happen in the future, build your lead funnel now. Don’t waste money on a website that’s pretty but does nothing. Get a website built for lead generation. Download my free PDF – 5 Steps to a Killer Lead Generating Website to ensure your new website will be a lead machine.
Buy a list of leads. Reonomy sells targeted lists with contact information of building owners, ability to filter by location, type of building, size, and more! Most of Reonomy’s contacts will include email addresses for easy cold-emailing.
Cold-calling. Gone are the days where you had to sit by the phone and dial numbers, trick receptionists, and talk to voicemail. Mass texting, and Direct-to-Voicemail services have made cold calling a painless experience. VoiceLogic has a direct-to-voicemail product that’s shockingly inexpensive. Here are some tips on cold calling.
Cold-emailing. Cold emails are a numbers game. Expect to send out 100 a week and only receive a few responses. There are inexpensive services like available like Woodpecker.co that automate your cold calling strategy without breaking the bank. Here are some more tips on cold emails.