StripMallGuy

Amazing how many businessmen there are running around Manhattan in their 70s and 80s. Dressed to perfection, immensely successful, and focused on the next deal. They don’t do it for the money, which is also what go them here.

I don't go to conferences because of the scheduled meetings. Sure those are great, but I can do them over Zoom. I go for the serendipitous interactions. When you meet someone new, or catch up with someone you forgot you needed to catch up with. This just happened: I'm at the ICSC conference in May. Run into a broker I haven't crossed paths with in a while. "Hey, what are you up to!" Yada yada yada, he's working on a deal, yada yada yada, we are now in escrow!

If you have a good idea or strategy, people will want to copy you. So what, let them. They won't want to copy how hard you work, and they'll never be able to copy your passion for the mission at hand.

Success requires knowing what expert advice is BS. My first example of this was when I was 23. It was my second year in the business, and I didn't know anything. A client wanted to buy a building on a specific corridor, so I called a broker who'd been the area expert for decades. He told me he knew every single owner in the area personally, and had for many years. He told me absolutely nobody was selling, and that if they were going to sell they would have already told him. He said nothing ever trades in the area, and that I was wasting my time. What he said made sense, and the task seemed impossible, but I chose to ignore him. I had to. I needed to make it in the business, so I had to see for myself. So, I asked the Title Company to print me a booklet of every single owner on that street, Contra Costa Blvd. I decided I would speak to every single owner. So, I just started calling. It was short and to the point: "Hi Ed, I'm calling because I have a client that wants to buy your building, so I thought I'd check in with you." I did this over and over. For weeks. Finally, one of the owners told me he had been thinking of selling, and that the timing was very coincidental. I asked him what price he was looking for, and I paused: "$2,200,000" I picked up the phone and called my buyer to tell him what building it was, and the price. He knew the building well, and the price worked. A few weeks later, the deal was closed. Commission to our company: $100,000. All because I was naive enough to ignore advice from a so-called expert. An early lesson that completely changed the way I think.

In 1981, the HP-12C calculator shook the real estate industry. It suddenly allowed anyone to calculate IRRs and loan amortizations instantly. Many thought their edge was suddenly gone. Fact is, there's aways the next "HP-12C" If you're good at what you do, it never matters.

As a buyer, I love to close transactions by the 15th of the month. The seller credits you for the rest of the month’s rents, and there’s plenty of time to notify tenants to pay you the next month’s rent. If you close later in the month, many of the tenants end up paying the seller rent instead of you, and you’re playing the game of having them cancel checks, reissue, etc. Easy headache to avoid.

There was a group of 25-year-olds standing next to us on the subway, heading to the Yankee game on Saturday. We got to chatting—they were all in finance. I ended up speaking with one of them. He arranges financing for large real estate deals and works at a big firm. I asked him what’s next for him—where he sees the job taking him. This wasn’t an interview where he’d give a rehearsed answer. He was honest: “I have no idea. I have no plan. I’ll see where things take me.” It was a great answer. Many people feel they’re expected to have all the answers, to know exactly what comes next. But the truth is, very few of us know at 25 what we’ll be doing at 30—and that’s perfectly normal. In fact, it’s a good thing. Setting a plan can actually work against you. Circumstances change. Doors close unexpectedly, and others open. A rigid plan can create blind spots. Funny enough, if this had been an interview, it would’ve been the ideal response. I had no idea at 25 where I’d be at 30, and that uncertainty kept me open-minded. You don’t need to have a plan, and acknowledging that can be a sign of wisdom. So to those eager to succeed, learning every day but without a fixed plan: Your future is bright!

This is the biggest tire-kicker real estate market I’ve ever seen. Lots of interest, many parties circling all over the place, few actually pulling the trigger.

Play to your strengths. If you've got the gift of gab, do more calls. If you're stronger in person, schedule more meetings. If you express yourself best over email, type away. If you're great at all three - well, you're reading this from your jet or vacation house.

Drives me crazy when I hear: “That broker only worked 10 hours for that $200k check” You’re paying for the result.