INVESTING IN NEW BUSINESS
partnership is key to being successful in optimizing the real estate investment for a fiduciary account .
ADDING VALUE AS A CRE PROFESSIONAL With fiduciaries of all shapes and sizes in need of expertise within the commercial real estate space , savvy professionals can offer a robust value-add proposition . CCIMs , in particular , are well positioned to reach these potential clients , because they have :
• Sterling reputations as knowledgeable , ethical CRE professionals .
• Access and fluency in financial tools and real estate investment criteria .
• Networks of diverse investment real estate opportunities in markets across the U . S .
• Potential to work with other real estate professionals who understand fiduciary laws in different states .
• The ability to support the fiduciary with experience in estate transactions and asset management , which will help the fiduciary fulfill its “ higher standard of care ” obligations .
• Knowledge and awareness of pertinent real estate trends and market conditions .
When it comes to best practices dealing with fiduciaries , a lot of the discussion flows from fulfilling the bullet points of your value proposition to potential clients . It ’ s vital to be well-informed and able to apply the knowledge of the fiduciary world and its important concepts . By understanding what role investment real estate plays in the overall fiduciary account , you can speak to the goals and objectives of your potential client . It ’ s imperative to know how to speak the language of fiduciaries . While you can ’ t be expected to know every concept — you ’ re the expert in commercial real estate after all — a fluency in this dialect of investment will help improve the impression you make on the fiduciary .
Teamwork is another exceptionally important consideration when it comes to fiduciaries . With attorneys , accountants , co-trustees , and countless other key players , integrate yourself into that team . Cooperation is vital , even though it may sound simple . Learning to work with others in a productive manner is a skill that is especially important in this arena . Meanwhile , within this team , show the CRE skills and knowledge that you ’ ve gained in your career . Without being pedantic or abrasive , show your team that you know how it ’ s done in your area of expertise . In the end , it ’ s key to be a pleasant , essential , and valuable member of the team .
Diversifying your services will also generate more demand . If you are an expert in acquisition , that ’ s great — but as a general rule when introducing yourself to fiduciary clients , have a working knowledge of different types of transactions . If you truly are qualified in other roles , such as liquidation or refinancing , make yourself available . Conversely , if you are not confident in a specific area , honesty is important . Your fiduciary client will appreciate your straightforward approach of outlining where you can be the most helpful , while a referral or introduction to an expert in that area could be a way to provide value .
Relationships with fiduciaries can be valuable over the long term . Be sure to maintain periodic communication with your fiduciary clients , even if no transaction is in process of upcoming . Stay on their radar with quarterly market updates or even something as simple as holiday cards every winter . You never know when a previous client may have a new opportunity for you .
One final best practice is discretion , discretion , and — unless you ’ ve been advised otherwise — more discretion . Ultra-highnet-worth families and major players in trust accounts are not looking for noisy advertisements or big announcements . This approach may be different from other CRE markets ,
By understanding what role investment real estate plays in the overall fiduciary account , you can speak to the goals and objectives of your potential client . .
but nine out of 10 clients in this space appreciate erring on the side of a discreet approach to business .
In the end , it ’ s vital for CRE professionals looking to enter the fiduciary space to be as prepared as possible when approaching a potential fiduciary client . The work can be complex and difficult , but the rewards are significant , as is the possibility for repeat business . If you can establish your reputation within the world of fiduciaries , they will start recommending you to one another . Taking it one job at a time and one relationship at a time , you can build a robust portfolio of work .
Editor ’ s note : This article was adapted from
CCIM Institute ’ s course , “ How To Work With Fiduciaries — A Big World .”
Visit www . ccim . com / education for more information on upcoming dates .
Peter Lawson , CCIM Retired CRE asset and property management professional
Carmela Ma , CCIM President and CEO of CJM Associates Inc .
CIREMAGAZINE . COM COMMERCIAL INVESTMENT REAL ESTATE MAGAZINE 37