My little electrical company has taught me a lot about business. As a matter of fact, the lessons I've learned as an electrical contractor have made me a better real estate broker.
Quality Electric Co., LLC is a small, high octane electrical contracting company. The thing that makes us unique in our area is that we can do just about any level of electrical wiring and repair. It doesn't matter if it is residential, commercial or industrial. It's not unusual to do all three in one day.
Our team is extremely talented at troubleshooting, and one of our primary sources of income is fixing stuff that breaks in business environments, and fixing stuff that others have tried to fix or have installed. Another major source of income is the commercial projects we are drawn into that are fast moving, and that is one of the places where I see the greatest similarities to real estate. Here is what I mean.
- Many projects are presented one way, but in reality, they can be
radically different. We often receive a set of blueprints that show what we're supposed to do, but on the site, the plans mean little (not always). Not all real estate sales are as presented. You find things along the way that make you shake your head. Don't assume things will be easy or difficult. They may actually turn out very different than you expect. - Many projects are time sensitive. For some strange reason, we thrive on the high intensity time-sensitive projects. I think it's the whole challenge of pushing ourselves. We wired three banks this past Spring. They were supposed to be completed from start to finish in 18 days. That included demolition, rough wiring and finish. We completed our portion in 18 days. The remaining contractors took 60 days. The panic in some real estate sales can be one-sided. It's important to do what you commit to do, but pay attention to everyone else because you may be the only one who is working, fretting and pushing yourself at an abnormal pace.
- Many projects cost more than expected. When you bid a project based upon a set of blueprints, you get one picture of the project. It may be
completely different on the site, and that can be thousands of dollars of difference. Real estate is no different. You've got to know everything possible up front. This is especially true of REO and short sales. You've got to stay on top of everything expense related. Things can change in a heart-beat. Make sure you know what your client, bank or short sale negotiator is requiring of you. Dot all of your "I"s and cross all of your "T"s no matter what type of sale it is. Don't assume anything. - Make sure you don't get emotionally involved in the deal. High intensity projects tend to attract high intensity personalities. It would be easy to get mad at people for non-performance when things aren't moving as fast as you think they should. I've almost come to blows with some contractors over the pace things are progressing. Remember, when you deal in this arena, everyone is in a hurry and they have expectations that may not be realistic. The same thing happens in real estate.
- Make sure everyone signs off when you've done your job. In order to
get paid from a contracting job, everyone needs to sign off that you've done your job. The same thing happens in a closing. When everything is done, you get paid.
- Make sure you're always ready for another fast-paced project. They tend to pay well and fast. Be ready for a surprise contract, listing or referral. They are always out there looking for an opportunity to be satisfied.
Contracting and selling real estate have many similarities. You may have similarities in your life experience. What can you glean from your life experience that will make you a better real estate professional?
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