Looking to transition to Commercial Real Estate? Learn more about the benefits and how you can get started in CRE.

1. Thinking about transitioning into
commercial real estate?
HOW TO GET INTO & EXCEL
IN THE COMPETITIVE WORLD OF
COMMERCIAL REAL ESTATE
By: Curtis Gabhart, CCIM

2. INTRODUCTION
Curtis Gabhart, CCIM
• President, Gabhart Investments, Inc.
• Director, Keller Williams Commercial
• Has a Certified Commercial Investment Member
[CCIM] designation from the CCIM Institute.
• CCIM San Diego Chapter Board Member
• Past president Commercial Realtors Association
• Commercial Policy Advisory Board – University of San Diego Burnham-
Moores Center for Real Estate
• Commercial broker for San Diego flip this house
• 250 Million Plus of Commercial transactions
• 40 + Million transacted personally
• 2015 Multi-Family Dealmaker of the Year
• 2015 Retail Dealmaker of the Year

3. Questions we hope to answer
– What is commercial real estate?
– Is commercial real estate right for me?
– How long will it take to make money?
– What are the tools I need?
– Do I need experience in commercial real estate?
– How do I make the transition?
– How to leverage your existing clients?
– Choosing the right company to work for
– Additional resources to get more information on commercial real
estate

4. What is commercial real estate?
• Definition: Commercial real estate is any property owned to produce
income. In its broadest definition, it includes apartment complexes,
industrial, office, hotels, and retail real estate.
• The different types of Commercial Real Estate
●
Office – Where People Work
●
Retail – Where People Buy
●
Industrial – Where People Make Things
●
Multi-Family – Where People Live

5. Is Commercial Real Estate Right
for me?
• Start-Up Capital
• Are you afraid of the phone? Telephobia?
• Commitment: Willing to put in 3-5 years of hard work
to set you up for the next 20
• Willing to learn and listen?
• Willing to sacrifice for the future?

6. More Transactions Per Client
A captivated audience stays till the end
- Typical Commercial Owner is more
active
- Commercial Owners are in market for a
longer period of time

7. Emotion vs. Objectivity
Trust sells more than anything else
- Residential Owners place
more importance on emotion
- Commercial Owners place
more importance on
diligence
- More investment savvy
- More Professional Decisions
- Better Opportunity to
convince with Facts & Figures
- Less interference from
Investors Family members
- Much more cut throat

8.  Starts with a phone call or relationship
 Meet and Greet
 Gather Information from Owner/Needs Analysis
 Proposal
 Listing Package
 Marketing Period
 Close the Deal
 Find another property for them
Typical Sales Cycle

9. Typical Day
 4-6 hours of prospecting
 1-2 hours of transaction management
 1-2 hours of appointments and meetings
 1 hour of lead follow up

10. Higher Commissions
Why climb a mountain? Because it is there!
- Typical Sales Value $ 1-2
million

11. How long will it take to make
money?

12. How much money can I make?
A lot!!!!!!!

13. Quit before you succeed
Beyond your expertise
What are the risks?

14. Code of Ethics
Article 11 of the National Association of REALTORS® Code of Ethics
has this to say about expertise:
“REALTORS® shall not undertake to provide specialized professional
services concerning a type of property or service that is outside their
field of competence unless they engage the assistance of one who is
competent on such types of property or service, or unless the facts are
fully disclosed to the client. Any persons engaged to provide such
assistance shall be so identified to the client and their contribution to
the assignment should be set forth.”

15. What Are the Tools I Need?
 Database
 Market knowledge
 Presentation materials
 Able to value properties
 Marketing Materials
Flier
Real Estate Investment Analysis
 Common questions and objections

16. • LEARN!
• Pick a niche
• Become an expert
• Classes
• Refer
What if I do not have any
experience in Commercial Real
Estate?

17. Learn the basics.
Leverage your existing client base.
 Use your center of influence.
 People with equity
 Start 2-4 units (REO)
 Build their portfolio
 1031 Exchanges
 Key Metrics
How do I make the Transition?

18. Decide where you want to work. Weigh
the pros and cons of each.
 Residential company?
 Commercial company?
 2 Business Plans
 Goals
How do I make the Transition?

19. How do I make the Transition?
 Pick niche
 Get educated
 Contact prospects
 Existing clients
 Phone
 Kurtz directory
 CoStar
 Mail
 Title companies
 Expired listings
 Advertise for buyers
 Craigslist
 Social Media
 Network, Network, Network

20. Developing Expertise
You could spend more time doing things that advance your career, if you get rid of
the things that are holding you back
- Geographical Knowledge
- Past Sales Transactions
- Property Valuations
- Rents, Price / Sq Ft, Cap
Rate
- Gross Rate Multiplier,
Price / Unit
- Cash on Cash Return
- Average Market Time
- Vacancy Levels
- Price Trends
- Competition
- Lenders, Appraisers
- Operating Expenses
- Socio-economic demographics
- Major Employers
- Transportation
- Zoning, Building & Rent Codes

21. GabhartInvestments.com
How to leverage your existing
client base?

22. No Need to Recreate Business
Model
If you don’t have an effective sales plan, any business you get is purely
accidental
- Use Similar Resources to Expand
- Follow Examples Already Set
- No Additional Lead Time
- Continue Existing Business

23. Logical Transition
I see, therefore I am
- Already in Residential
- Idea of Market
- Idea of Customers
- Idea of Process
- Best way to Up-sell
- Help Clients Grow
- Larger Commissions
- Larger Goal

24. Many Clients Already Own
Investment Properties
Key is to have a plan that generates the right kind of sales from the right
kind of accounts, backed by the right sales process,
that produces the maximum revenue for your time.
- Larger your Offering,
- Larger your Circle of Influence
- Service Your Existing Market

25. Own / Co-Own
Your less likely to fail when you have told others that you will succeed
- Opportunity to Own / Co-Own
such investments yourself
- Be the first to review
opportunities
in the market
- Form an Investment Partnership
- Many want to co-own but do not
have the opportunity

26. • Product Specialization
• Type of support offered
• How long until you can start prospecting
• Type of training provided and who provides it
• What has their track record been with new agents
• Company name recognition, credibility & reputation
• Market knowledge
• Market share
• Access to Research Information & Ownership Database
• Other Income Sources
• Split
How to find the right company to
work with?

27. Should I stay or Go?
• Pro’s Big
Commercial
– Right Company
– Database Support
– Marketing Collateral
– Market Credibility
– Start Faster
– Proven Systems &
Procedures
– Larger Commissions
– More Investment Savvy
• Cons
– Full Time for Success
– Lower Commission
Share
If nothing sets you apart from the competition, your clients will always
remain someone else’s prospect

28. - General
•CCIM
•STBD
•Top Dog DVD’s
•Mike Lipsey
•Amazon
•Mojo
- Databases/CRM
•Realhound
•REA
•RE Application
•Mike Cutler (Act for
commercial RE)
- Sales information
•CoStar
•MLS
•Loopnet
•Title companies/public
records
- Owners
information
•Kurtz directory (includes
phone numbers)
•Pierce Eislen
•Realpage
•CoStar
•ProspectNow
Resources
Successful people find their highest return on investments is
in themselves

29. Thank you!
Curtis Gabhart, CCIM
Gabhart Real Estate Advisors
Keller Williams Commercial
12780 High Bluff Dr Suite 130, San Diego, CA 92130
858-356-5973 | www.gabhartinvestments.com