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Real Estate Consulting Essentials
Syd Machat, ALC
REEA „11/Las Vegas
Boom +
Bust = Recovery
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Where in
the
Recovery
Phase?
Today’s Outline
1. Intro
2. Terms, credentials
3. The Consulting Process
4. Engagement Docs
5. Consulting Assignments
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I. Intro “WIIFY” (What’s in it for you?)
O Serve clients by consulting
O Cast wider net in your specialty
O Pick creative, fun assignments
O Generate diversified income
O “Psychic Income”
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Peter Miller Huffington Post
“If ever there was a time for
a real estate consultant‟s
services, it is now.”
…but why ??
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“Why Consulting?” (today)
List reasons why a need for
consultants is high…
1. ________
2. ________
3. ________
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We may give advice…
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O As Individuals/Family
O At Work - bundled
___________________
Private Practice -
un-bundled, for a fee
Leverage Your Expertise
A Definition
Reconstruct
to re-create in the mind
from given or available
information.
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II. Terms, Credentials, Ethics
OAdvisor – one who offers an
opinion or suggestion as
worth following
OExpert – makes specialized
recommendations – hired
gun?
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Terms, Labels (cont.)
O CONSULTANT– a professional
who has some special skill or
knowledge in a some particular field
O COUNSELOR– a person who counsels;
advisor; e.g. Lawyer, CPA, CRE.
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Definition: Real Estate Counseling
the business of identifying &
analyzing issues needs for a
fee, reporting back to clients
with specific recommendations
so they can make RE decisions
(cf. estate brokerage)
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So what do we go by?
O Advisor?
O Consultant?
O Counselor?
O All of above?
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Opportunistic Goals Seek Advisory Roles
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School Owners
School Administrators
Instructors, Trainers
Earn Those Designations
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Non-residential examples
DREI
ALC
CRE
CCIM
CDEI
and others…
Credentials, please…
O Education – RE specialty
O Experience - resume
O Ethical – personal, codes
O Expertise – designations
O Education - academic
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Accredited Land Consultant RLI Resource - www.rliland.com
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RE Counseling Designation CRE - A Resource: www.cre.org
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Deploying Your Own Requisite Diversity
O blend your multi-talents for clients
O tackle advanced RE issues
O Earn fee-based income as advisor
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Role of Ethics
O State Regulations & Statutes
O State Code of Ethics
O Industry Code(s) of Ethics &
O Standards of Practice
O Licensure
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The Consulting Process
1. Recognize issues
2. Form relationship
3. Plan assignment
4. Perform scope of work
5. Implementation (optional)
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Business Decision Matrix
O Objectives, Prioritize, Identify
pathways, Select Options, Effort
& timing, Implement, if required.
O “You can only convince people
who think they can benefit from
being convinced.” Nassim Taleb
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IV. Engagement Documentation
O Letter of Engagement or Contract
Format
O Boilerplate clauses, Disclosure-
disclaimers
O Business bio
O Amendment issues?
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Statement of Work
O The parties
O Services-deliverables
O Scope of duties spelled out
O Timing of deliverables
O Fees, retainer, expenses
O Acceptance
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Getting Paid
1st Hour is Free?
O What‟s your time worth?
O Hourly, annual rate
O Flat fee, expenses
O “A Broker‟s Reflex”
O When to say NO!
O Pro Bono, orgs
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V. Consulting Assignments: Brainstorm!
DE/CE Course
Author
National Advisory Boards
Regulatory
Compliance Officer
Employee or I.C. for CRE
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What Not to Do! (little mistake$)
Give “Free Advice”
Fail to Amend
Keep Time Log
Grasp Extent of Scope
Underprice Flat Fee
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Litigation Support & Expert Testimony
O Who really does the hiring?
O Reports, conferences, phone fees
O Your cup of tea?
O Getting paid
O Pmt. ~ when?
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Niche Plays
O Webinar, Hybrid author
O CE class writers – fresh content
O Partnering a creative project
O “Resi-mercial” agents
O Review Editor: DE/CE
O Public sale - buyers
O Negotiation - heirs
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O National Exam Advisory Boards
O Job descriptions, item review
O Travel to Board meetings
O Meet Regulators
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Pre-Licensing Exam Firms
Our Litigious Society
Professional Liability coverage:
OE&O for RE consultants
OUmbrella policy; higher auto
OClient‟s ins. requirements
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Target Marketing: Your Business
O Business cards, logo
O Counseling brochure
O Web Site, consulting
O Google Ads work?
O Niche bio brief
O Announcement card
O CPA‟s, lawyers
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