A good reputation pays dividends

February 4, 2008. The article with the link below ran in the Detroit News. The reporter phoned me to ask my opinion of how the listing of Northland Shopping Center was being handled (the listing did not have a price – it was make an offer). I was quite flattered that the reporter thought enough of me that out of all of the real estate brokers out there, he phoned me personally to ask my opinion.

I answered his questions, gave him some information and suggested that he also speak with David Gilmore of the Sperry Van Ness Accerated Marketing Team as the marketing method resembled an auction more than a traditional plan. I only wish he had included my quote, “The success of that method is largely determined by how widely it is promoted. Sperry Van Ness immediately emails such properties to 60,000 commercial brokers and 40,000 potential buyers. You never know who will produce the best offer.”

That was a blatant promotion of our firm.

The Sperry Van Ness philosophy is to promote our listings to every commercial broker in the country along with our database of 40,000 potential buyers, which is always being expanded, especially now that we are international.

The difference between selling in house and cooperating the sale with other companies is that even with a lower sales price if it is sold in-house the office gets nearly double the commission. With Sperry Van Ness we believe we represent the buyer, not ourselves, and believe that the sales price will be higher if more people have the opportunity to bid on the property.  While 80% of sales in the commercial real estate industry are in-house, Sperry Van Ness is almost exactly the opposite; 70% of our sales are cooperative and over 70% of the remainder are cooperative between our offices. The reporter also asked me for help on another real estate story he is doing on cottages in northern Michigan. I told him that Sperry Van Ness does commercial sales only, and suggested a very good broker in northern Michigan. Again, though, I was very flattered that he asked.  Gary Lillie 

Here is the link:

http://www.detnews.com/apps/pbcs.dll/article?AID=2008802010337

Sperry Van Ness national conference

January 28, 2008. Gary returned to the office today from rainy California. It was at the Hyatt Regency in Huntington Beach that Gary attended the annual conference for the entire Sperry Van Ness company (did you know that Huntington Beach was named for the foreman of the ranch owned by the father of General George Patton, which at one time stretched from Redlands, California to the Pacific Ocean, then south to and including Catalina Island?).

The 2007 top producer sales awards were given out at the black tie banquet Saturday evening. It was interesting to observe that successful real estate people are not stereotypical. The award winners (there were over 160) were a good cross section of America. They were anywhere from 24 to 6o years old (the number in their 20s was gratifying), they were men and women, (4 of the top 10 were women), they were native born as well as naturalized citizens (3 of the top 10 spoke with heavy accents) and they were extremely good at what they do (the 14th place finisher sold over $200,000,000 worth of commercial real estate). The commonalities were that they all worked hard, worked well together (often in teams), had respect for one another and had fun doing what they do.

The conference had a full schedule with numerous speakers, seminars and break-out sessions where advisors were able to better their professional skills. Selling real estate is not persuading, which is why at Sperry Van Ness sales people and brokers are known as “advisors.” It’s apparent that we’re pretty good at it.

Working with bankers

January 21, 2008. A client that Bob and Gary are working with asked for help in negotiating a purchase and obtaining financing on some rental real estate that he has had his eye on. The property owner has finally decided to sell, but for many reasons, mainly the condition of the properties, it will be a difficult transaction to complete. So the client asked Gary to meet with him and his banker.

After talking over all of the problems, nuances and ramifications of buying these rental units, Gary suggested a strategy that neither the client nor the banker had thought of. Now begins the negotiations, which is the part that takes sales experience and skill. Selling is not talking someone into something, because that usually can’t be done. In the few instances where it can be done, it can turn out bad. Selling is listening to the needs and points of view of both sides and then matching those needs and goals. Selling is pointing out and explaining the benefits that others didn’t see. That is the fun part of selling.

Gary was so successful at matching the goals of both sides in one transaction that the buyer and seller, after the sale closed and Gary collected his (sizable) commission, pooled some money and jointly paid Gary a bonus, telling him to take a well-earned vacation.

Ann Arbor rental properties

January 13, 2008. For over 25 years Keith Pratt has specialized in income producing properties, with emphasis on student housing. He has witnessed and participated in the evolution of the industry with respect to management, city codes, leasing practices, rents, financing and tax benefits.

In the 70’s and 80’s interest rates were high on non-owner occupied real estate. Willing lenders were few and unfamiliar with the product. Today, there are more participating lenders, interest rates are quite reasonable, have just dropped to the high sixes and properties having four units or less can be financed with conventional residential mortgages.

The product quality is up, as many city rental inspection programs have over the past 40 years or so brought the rental housing inventory up to code and required high levels of maintenance.

At the voting booth, several times over the years the good citizens of Ann Arbor have defeated efforts to impose rent control, allowing competition and a free market to work. We must always monitor the politicians to ensure that this destructive practice is kept out of any community where rental property exists.

Another major impact on the benefit of investment property ownership has been the ease and simplification of moving up through 1031 tax deferred exchanges.  The brokerage industry has learned and matured using this important tool to help clients and customers create equity and increase return on investment through the ownership of quality income producing real estate.

To discuss Ann Arbor income-producing real estate; residential, office or commercial, give our office a call and ask for Keith Pratt.

Let’s get going!

January 7, 2008. It’s the start of a new year and some people are worried about the economy. Others say that now is the time to buy because “there’s blood in the streets.”There is no doubt that there are bargains out there and plenty of bargain hunters.

So if you’re a seller for other reasons, just because it’s time to sell, how do you protect yourself from being perceived as anxious and ready to sell at a bargain? The solution is to give your property maximum exposure.

It is written by investment experts that there are four dollars of investment money chasing every dollar of good investment real estate. How does one tap in to that money?The platform of the Sperry Van Ness is to put the client’s interest ahead of our own. Interesting concept, isn’t it? We serve the client instead of ourselves.

What does that mean? It means we proactively market our listings to other brokers and offer to split the commission 50/50 each and every time.You say all commercial real estate firms do that, right? Let’s give you a couple of tests to determine if that is true.

When you consider listing your commercial real estate with another broker take a look at the listing contract. If the offer to split the commission 50/50 isn’t in there, which it should be, ask the agent if they will write it into the contract. If they won’t, you can guess whose interests will be served.

Sperry Van Ness not only has the offer to split commissions 50/50 in our listing contracts, it is required of all companies, per the contracts that we sign, when we join Sperry Van Ness. You will not see that with any other commercial real estate firm.

Happy New Year!

December 31, 2007. To all of our past and future clients, we hope that 2007 was the most successful year you ever had and 2008 will make it look like a failure.

Happy new year and give us a call so we can get you going on investment real estate. You are not likely to find better opportunities coupled with better interest rates than you will in early 2008.

Merry Christmas to all

December 24, 2007. It’s Christmas eve and we at Sperry Van Ness | Lillie & Associates wish you and yours the merriest Christmas possible.

To our non-Christian friends, a belated Happy Hanukah to those of the Jewish faith.

Happy Kwanzaa to our African-American friends, and finally, if I am missing anyone, send an email to gary.lillie@svn.com. I would like to hear from you so you can educate me on your faith.

With the best of wishes to all, Gary Lillie.

Sperry Van Ness is growing

December 17, 2007. Sperry Van Ness has recently added markets across the country – Chicago, Manhattan, Denver, Seattle and Puget Sound. It has also added Costa Rica and Panama as markets. What does that mean to you? It means more potential investors if you are a seller.

Real estate investment is no longer a local market – it spans the globe. Gary Lillie has sold real estate he has never seen and to investors he has never met. With marketing of real estate taking place on the Internet, investors cross not only state lines, but national borders as well.

It is said that there are four investment dollars chasing every dollar of good real estate investment. So how do you tap into those dollars? List your property with Sperry Van Ness | Lillie & Associates and expose your real estate to investors around the world.

Closing the sale of the farm auction

December 10, 2007. Can you believe it? Neither can the seller. This coming Friday, December 14, Joe Merkel will close the sale on the Clinton, Michigan 156-acre farm auction.

For non-contingent sales and fast closings there is no better method of selling real estate than the auction method. In Australia it is almost the only way real estate is sold.

Congratulations Joseph Merkel on a job (really) well done.

Winding down the year

December 3, 2007. There isn’t much time left to complete your real estate investments this year.

For some, they want to sell this year for tax reasons and for others they want to complete their transactions next year for tax reasons. It can be a juggling act and buyer and seller can have opposing goals, so a lot of expert advice is needed.

While we leave the advice to the attorneys and CPAs, we may be able to suggest strategies and opportunities that you can take to your attorneys and CPAs to see if they work for you.

To discuss your goals, give us a call and ask for Bob Hobbs or Keith Pratt.