In Session 2 of the Smart CRE Broker Podcast, I’m pleased to present our very first interview which features ChristopherSavino, President of Equity Investment Services, Inc. a full service brokerage here in Orlando, Florida.
You’ll hear Chris tell his story from his first exposure to commercial real estate as a kid when his step father would take him on site visits for commercial projects he was considering financing. Chris then became a brokerage assistant for a seasoned senior agent and ultimately founded his own commercial real estate brokerage company.
Listen closely as Chris talks about his “Model Day” which he calls his “System”. It is a recipe for daily success that results in consistent growth both personally and professionally. Here are the key take aways from the interview:
- Create a daily routine that includes all of the key activities and tasks that result in success. Stick with it.
- Make time for “big picture” stuff. That means strategic planning and growing your knowledge across the board.
- Tackle the things you are most afraid of first.
- Chris identifies 3 key attributes of successful agents: Integrity, Knowledge and Following a System for Success.
- When deciding on what firm to associate with, study the culture and the people. Interview them as much as they interview you.
- When first starting in the business, find a good mentor that you can learn the business from and potentially partner with long term.
- Chris ends with a great statement… “It is going to be difficult because it’s worth it. If it was easy, everybody would be doing it”.
INDUSTRY TERMS MENTIONED BY CHRIS IN THE INTERVIEW:
For those who are just entering the business or generally not familiar with standard industry terminology, we will include definitions of terms used by the people we interview in the Show Notes for each podcast. Here are the terms Chris mentions with their general definition:
Estoppels:An estoppel letter or estoppel certificate is a document used to assess, declare and/ or confirm the existing terms and status of a lease or mortgage obligation in a property transaction. The contents of an estoppel letter or certificate can vary widely but generally ask for the following information:
- A request for a copy of the existing lease
- Date of and expiration of the existing lease
- Names of tenants
- Current monthly rent
- Security deposit
- Parking and storage allotments
- Confirmation of standard leasing terms
Once all information is gathered on the estoppel document, both parties (Landlord and Tenant) will sign the document attesting to its accuracy.
NNN: This is a term to describe a form of lease and stands for “NET, NET, NET” commonly referred to as “triple net”. Generally speaking, a triple net lease means that the tenant is responsible for expenses related to real estate taxes, insurance and common area maintenance. Thus, the lease rental rate is net of those expenses to the Landlord.
CAPRate:Capitalization rate (or CAP rate) defines the percentage number used to determine the current value of a property based on net operating income (NOI). In other words, taking the net operating income from an income producing asset and dividing it by the CAP rate would yield the approximate current value of the asset.
The CAP rate would be determined based on a similar market comparables that have sold recently and or as determined by an appraisal of the asset. The calculation is derived by determining the net operating income (NOI), and then dividing the income by the price to get the cap rate.
LINKS AND RESOURCES MENTIONED IN THIS EPISODE:
- Equity Investment Services, Inc. Check out Chris’s company web site.
- Globe Street A must read for anyone in the commercial real estate business.
- CRE Firms Our new sponsor for the podcast. Check them out for a free trial!
THANKS FOR LISTENING!!
I want to personally thank you very much for taking the time to listen to the Smart CRE Broker Podcast. If the podcast has helped you in any way (and I certainly hope it has), please be so kind as to share it on social media using the buttons on this page.
Additionally, It would be very helpful for us if you could leave us a review on iTunes and/or Stitcher which helps us in the rankings and generally lets us know how we are doing. I promise you I will read every one!
Lastly, leave us comments or send us an email to let us know what you want to hear more (or less) of on future shows. You can also tell us your success story and I may want to interview you for an upcoming show! And don’t forget to subscribe so that you get automatic updates and notifications when new episodes are released.
Thank you again!