When you sell real estate you are really fulfilling the the dreams, aspirations, needs of people. The real estate is just a means to help people accomplish their goals and objectives. The better you understand this, the better you can tailor offers and be creative in solving peoples problems.
For this you need to develop relationships with the people you deal with. The following can help you understand your client and better prepare yourself to effectively help him/her.
When you have any questions or suggestions please do let us know.
| Client (Owner)
Questions: Client Details |
Definitions or Examples |
| "Client" | Owners of the property |
| Trader-Parlay | Owners who trade equity for other properties to build estate |
| Passive Investor | Financial partner only, no real estate management expertise |
| Active Investor | Makes real estate management decisions, has the expertise |
| Fixer / Handy | Owners who repair and manage properties themselves |
| User/Manager | Has a use for the property, & can manage property themselves. |
| Speculator/Thief | Investor who only acquires property "wholesale", (often below market value) to later sell at a retail price. |
| Client Situation | |
| Off Management | Owner no longer able or willing to do property management |
| Off Negative Cash Flow | Owner needs to eliminate negative Cash Flow |
| Off Balloon | Owner needs to eliminate balloon payment in note |
| Geographical | Owners not willing to acquire property outside their home area |
| Entity Dissolution | Owners dissolving the entity holding title to the property |
| Need Profits | Owners want the money |
| Need out of Real Estate | Owners not a prospect for other real estate property in trade |
| Too Much Inventory | Owners have too much real estate property |
| Lost Tax Benefits | No tax savings for Owner. Asset fully depreciated. |
| Need New Loan | Owners want to pull out cash or refinance at lower interest rate |
| New Opportunity | Owners found an alternative Investment opportunity |
| Partners Disagree | Management dispute, Owners have different objectives |
| Health | Not able to manage property. Need to clean up estate for kids. |
| No Real Problem | Owner not motivated! (Good signal to pursue other properties). |
| Power of Sale | Lender has authority from courts to sell property. |
| Clients (Owners) Objective | |
| Taking Profit | Owners want money |
| Parlay/Capitalize | Parlay equity into properties and assets to build estate |
| More Shelter | Move tax benefits of Real Estate Ownership to other property |
| Trade Up | Owner wants a higher value property |
| Recognize Value | Owner wants to "Cash In" equity |
| Consolidate | Owner has too many real estate properties |
| Opportunity | Owner wants to use equity to pursue another opportunity |
| Retire/Passive | Owner wants no more management responsibilities |
| Spend Talent | Using real estate expertise to create more value |
| To Acquire | Owner wants to acquire more properties |
| Increase Flow | Owner wants more income from real estate property |
| Convert to Paper | Owner wants to "clip coupons", or use notes to trade |
| Change Benefits | Owner wants other benefits of real estate ownership |
| Owners Motivation Rating | |
| Will Pay to Get Put | Owner will pull money from pocket to Sell or Trade! |
| Zero Equity if Off Loans | Owner usually wants to stop losses |
| Desperate to Save Equity | Owner usually wants to salvage deal. |
| Impending Event Coming | Owner is perhaps loosing tenant, or note is due. |
| Take equal Equity Almost Anywhere | Not geographically limited, consider any location |
| Trade All Equity for Objective | Owner does not require "all Cash" to make deal |
| Take Part Equity | Consider something else than "all CASH". |
| Part Paper/Cash | Owner will consider Cash and Paper |
| Will only Take Perfect Transaction | Owner not realistic or motivated |
| All Cash at Retail | Owner not very motivated |
| Testing Market for Suckers | Owner not realistic. Work on something else. |
| Client Will Consider | |
| Add Cash | Adding Cash to acquire a higher value property |
| Add Payments (or Paper) | Adding income from paper for investment opportunity |
| Add Property | Adding property to acquire another property |
| Exchange Portion | Exchange a portion of their equity for property |
| Take Problem | Take a "problem" property to accomplish objective |
| Partner with Other | Joint venture with someone else to accomplish objective |
| Manage | Providing property management, perhaps for new owner |
| Move Loan(s) With | Relocate debt against the property to do deal |
| Keep and Create Against | Create debt against the property for ownership interest |
| Lease Back/Guarantee Income | Sign a lease & guarantee income to Buyer |
| Pay Fee out of Pocket | Pay a commission out of Pocket if there is no equity |
| Provide Financial Statement | Sign a note personally |
| Supply Lender with $$$ | For example paying points |
| Take Back Mortgage | Provide Owner financing |
Client Wants: (types of properties or assets the Owner desires, or possibly has experience operating)
Cash
Paper
Cash and Paper
Multi-Family
Office Building
Retail Commercial
Independent Research & Development
Income Combination
Mobile Home/RV/Mini-Storage
Agricultural Property
Residential Lots
Development Land
Retail Development Land
Office/Business Park Land
Independent Research & Development Land
Premature Development Land
Home(s)
Second Home/Timeshare/Membership
Business Opportunity
Rights Mineral/Lshld/Geographic
Thank you to George Thomas, CCIM for his excellent input and suggestions.
Sincerely
Gary Nusca, CCIM
The Market ICI World Commercial Real Estate Network
www.iciworld.net
garynusca@iciworld.net