JM Padron, CCIM, MRICS, CCIM, MRICS, Serving Mexico-USA Border (INTERNATIONAL COMMERCIAL ASSOCIATES)

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Rainmaker
2,972,572
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Not sure what you mean by asking for "thoughts." It's part of the Code of Ethics we've agreed to honor and it makes sense. What's to think about?

Oct 04, 2016 09:50 PM
Rainmaker
783,646
Susan Laxson CRS
HomeSmart Professionals - La Quinta, CA
Local Knowledge & Global Network

My opinion:  If it isn't your area of expertise, refer it to someone who has those credentials.

Oct 04, 2016 10:57 PM
Rainmaker
1,817,086
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

Refer it to someone who is competent

Oct 04, 2016 10:02 PM
Rainmaker
680,109
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

CRE requires lots of knowledge, education and resources. The players often have deep pockets and attorneys on hand--and an extreme disdain for being cost time/money needlessly. If you're lucky enough to get into a deal without knowing how to walk your talk, you better have really good advisors and mentors to keep you out of trouble. Having said that, you have to start somewhere and if you're nice and professional a broker might take you under their wing and help you out. If you're not . . . that's why a lot of the top commercial guys won't return your phone calls. 3:)

Oct 05, 2016 10:08 AM
Rainmaker
910,712
Thomas J. Nelson, Realtor, ePRO, CRS, RCS-D
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

Don't Do It.

Oct 04, 2016 10:36 PM
Rainmaker
4,867,653
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for The Todaro Team

Amen.... I think there are too many agents trying to get in on making the big buck quickly....that never happens with commercial real estate....and these are the agents who cause havoc....they are dangerous and have no business attempting to slime their way into a phase of real estate they know nothing about....if an agent has a commercial lead, it should be referred to one who is well-versed with commercial real estate....

this is how I feel about tracts of land that an agent may stumble across.... they don't know squat but want the deal and the listings of homes... I'd rather drag them out back and shoot them....  

can you tell I'm passionate about this topic!!!!!!!!!!!!!!!!!!

Oct 04, 2016 11:23 PM
Rainmaker
1,366,827
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

JM Padron, CCIM I refer to Article 11 of the COE all the time. Agents who ignore this Article are doing an injustice to their client. Agents who want to get into the commercial side of real estate have to start somewhere and Article 11 points out the correct way for doing it.

Oct 04, 2016 11:15 PM
Rainmaker
3,763,410
Dorie Dillard CRS GRI ABR
Coldwell Banker United Realtors® ~ 512.750.6899 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

i always refer commercial real estate to a professional who handles these types of transactions. I work with residential real estate and don't intend to practice outside my expertise!

Oct 04, 2016 10:41 PM
Rainmaker
4,431,972
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

I agree.

Oct 04, 2016 10:01 PM
Rainmaker
729,505
Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

Stick with what you know. NAR is offering more and more commercial training opportunites these days, so agents that want to do commercial should investigate those classes if they don't want to go with CCIM.

Oct 04, 2016 09:58 PM
Ambassador
3,075,864
Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

I think attempting anything outside of what you were trained to do be it Short Sales or land deals, would be a violation of this.  Too many agents chase the pay check and don't pay attention to this Article.

Oct 05, 2016 09:30 AM
Ambassador
2,751,408
Dick Greenberg
New Paradigm Partners LLC - Fort Collins, CO
Northern Colorado Residential Real Estate

Hi JM - I completely agree. As one who has owned a commercial brokerage, I see way too many unqualified residential agents trying to wing it without a clue as to the unique differences in play.

Oct 05, 2016 06:55 AM
Rainmaker
1,477,506
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • Green • GRI • HAFA • PSC Calabasas CA

I had some commercial sales, but if it is a project I have no experience, I'd partner up with someone who knows what to do. I prefer partnership to referral since it is great opportunity to learn new skills. 

Oct 05, 2016 06:47 AM
Rainmaker
2,763,059
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

What constitues "proper training and education"?  How is it really any different than residential agents?  No one should be serving clients if they are not trained or have the education. 

Oct 05, 2016 02:02 AM
Rainer
211,334
Jessie Cochran
Counts Real Estate Group, Inc. - Panama City, FL
Panama City Realty Group

Works for me - if you don't know what you're doing don't do it LOL

Kinda works in any industry doesn't it!

Oct 05, 2016 01:08 AM
Rainmaker
1,521,221
Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West & Geneva Financial, Llc. - Carlsbad, CA
Presence, Persistence & Perseverance

Too bad many don't understand this until they get in way too deep.

Oct 05, 2016 12:48 AM
Rainmaker
822,482
Jennifer Mackay
Counts Real Estate Group, Inc. - Panama City, FL
Your Bay County Florida Realtor 850.774.6582

I posted about this a few weeks ago - if you don't know what you're doing, refer it and learn later - don't practise on your customers

Oct 05, 2016 12:41 AM
Rainmaker
1,276,892
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

I don't believe in practicing outside your scope of expertise period... CODE or not.  I even referred out residential prospects in outlying markets, which were totally different than mine.  This part of the CODE is not enforced, like much of the red of the CODE.  

Oct 05, 2016 12:41 AM
Rainmaker
983,968
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

The ones with CCIM and special associations form a cliques. Often they will not pay a coop fee. Broker has to threaten to sue or join their special association to get paid. They do not consider realtors or broker the same class.

Oct 05, 2016 12:11 AM
Rainmaker
1,206,287
Mary Yonkers
Alan Kells School of Real Estate/Howard Hanna Real Estate - Erie, PA
Erie/PA Real Estate Instructor

Agree JM Padron, CCIM 

Fortunately I am married to commercial agent so I refer commercial to him and he refers residential to me.  $$$ goes into our vacation fund!!!

Oct 04, 2016 11:38 PM
Rainmaker
1,504,801
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg IL Real Estate

I happen to agree. We cannot do both res & comm at my company.

Oct 04, 2016 11:12 PM
Rainmaker
3,049,771
Tony and Suzanne Marriott, Associate Brokers
BVO Luxury Group @ Keller Williams Arizona Realty - Scottsdale, AZ
Serving Scottsdale, Phoenix and Maricopa County AZ

Susan Laxson CRS nailed this one!

Oct 04, 2016 11:04 PM
Rainmaker
2,941,233
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of Manchester NH's Leading Agents

Many say they specialize in this, this and that such as short sales, but have never sold one. 

Oct 04, 2016 11:00 PM
Rainmaker
396,689
Katina Hargrove 352-551-0308
Stake Your Land Realty, Inc. - Eustis, FL
Broker/Owner, GRI,SFR, REALTOR®

JM Padron, CCIM

My thoughts?  If an agent is going to engage in Commercial sales, it is very wise to have training and education.

Oct 04, 2016 10:03 PM
Rainmaker
624,123
Mike McCann - Nebraska Farm Land Broker
Mike McCann - Broker, Mach1 Realty Farmland Broker-Auctioneer Serving Rural Nebraska - Kearney, NE
Farm Land For Sale 308-627-3700 or 800-241-3940

Great Question.

If they are legally licensed in the state they are doing business in, how are they going to learn if they do not start while inexperienced? We all were inexperienced at one time. Even those with fancy designations that supposedly identifies one as an "expert". Every single agent and Broker...past and present...needed to have their 'first' deal(s).  And each was inexperienced until they weren't.

My take on it is:  There are just as many incompetent, experienced agents out there who also carry a huge ego with them. And they are the ones who scare me.

Oct 18, 2016 11:59 PM
Ambassador
1,613,518
Harry F. D'Elia
RentVest - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

If you do not know it, then refer it out.

Oct 08, 2016 11:27 PM
Rainmaker
349,180
Susie Kay
Ultima Real Estate - Plano, TX
North Dallas Specialist

Realtors who want to get into commercial real estate need to take commercial real estate classes and they need a broker who knows commercial real estate to assist them or shadow/partner up with someone in commercial real estate. Classes alone are not enough. Also commercial real estate has many specialties, office buildings, multifamily, warehouse, land etc. 

Oct 06, 2016 08:16 AM
Rainmaker
1,157,264
FN LN
Toronto, ON

This is a NAR ethics code which applies to NAR members.  We have our own ethics code in Canada.

Oct 05, 2016 02:45 PM
Ambassador
2,344,189
Fred Griffin presently on Leave of Absence
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

My first commercial transaction was a 20 year restaurant lease from a close friend.

I took a CCIM to lunch and told him I needed a "mentor" per Article 11.  I slid a $100 bill across the table, and of course picked up the tab for lunch.

When my client found the property, I took the lease to my CCIM acquaintance.  He gave me the name of a real estate attorney to review it.

My CCIM guy went to church with me, he knew the commission to me was low (a couple of months rent); he refused to take any payment from me.

That restaurant is one of the most successful in Tallahassee.

Oct 05, 2016 02:22 PM
Ambassador
3,673,422
Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

That's why I refer any commercial leads.  

Oct 05, 2016 01:06 PM
Ambassador
778,973
Mimi Foster
FALCON PROPERTY SOLUTIONS - Colorado Springs, CO
Voted Colorado Springs Best Realtor

I have often thought commercial and residential should be separate licensing - there is very little similar between them. I always refer out

Oct 05, 2016 12:56 PM
Ambassador
2,188,589
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

I follow the code of ethics. An agent shouldn't be working out of their area of expertise without property training or guidance. Thank goodness my broker knows commercial real estate. 

Oct 05, 2016 09:17 AM
Rainmaker
2,701,684
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

JM Padron, CCIM It is important to fallow Realtor Code of Ethics.

Oct 05, 2016 09:10 AM
Ambassador
2,849,120
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

I refer out most commercial things.  I have listed commercial land as long as I am familiar with the zoning.

Oct 05, 2016 07:38 AM
Rainmaker
3,977,611
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

I feel you may need to partner with someone, but you can't just run away.

Oct 05, 2016 06:32 AM
Rainmaker
1,210,444
Ryan Huggins - Thousand Oaks, CA
www.HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Not applicable in California.  The state is trying to pass legislation letting darn near anyone sell commerical real estate without a license!

Oct 05, 2016 06:31 AM
Ambassador
4,054,186
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - Stevens Point, WI
Forestland Experts! 715-204-9671

The COE seems fairly clear.

Oct 05, 2016 06:30 AM
Rainmaker
4,796,451
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Great article that is routinely ignored by many.

Oct 05, 2016 03:32 AM
Rainmaker
2,892,877
Richard Weeks
Dallas, TX
REALTOR®, Broker

In Texas a broker is required to provide written notice as to the agents scope of authorized activities, and the agent must be competent in those activities.  So no only would it be a violation of the COE, it would also be a violation of our commission rules.

Oct 05, 2016 02:54 AM
Rainmaker
724,099
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

I don't see why this needs to be spelled out - would you try to do heart surgery if you weren't a surgeon?

Oct 05, 2016 12:51 AM
Rainmaker
2,423,468
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

I am licensed to practice Real Estate in California all types too. It is up to me to determine if I can do the job. Therein lies the strength & the weakness of the article. Its subjective.

Oct 04, 2016 11:58 PM
Rainmaker
3,166,103
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Many try and fail at commercial real estate! They need to learn the art of referral!

Oct 04, 2016 11:48 PM
Rainmaker
3,239,373
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

It makes sense.  Always did.  Always will.  

Oct 04, 2016 11:42 PM
Ambassador
1,490,716
John McCormack, CRS
Albuquerque Homes Realty - Albuquerque, NM
Honesty, Integrity, Results, Experienced. HIRE Me!

Susan owns this one.

Oct 04, 2016 11:26 PM
Rainmaker
743,237
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

One could argue that it will be IMPOSSIBLE to complete that first transaction, in ANY discipline of real estate. But the reality is, agents do stumble through

  1. the first residential sale,
  2. the first short sale,
  3. the first REO,
  4. the first new construction,
  5. the first 1031,
  6. the first investor,
  7. the first flip
  8. the first VA/FHA
  9. the first dual agency
  10. and yes, the first commercial.

That is why BROKERs and team leaders steal big bunches of money from subordinate agents. TO PROVIDE THE OVERSIGHT that assures the client is properly represented.

Realtor Code of Ethics.... and so early in the day.

 

Oct 04, 2016 11:16 PM