In commercial real estate, potential buyers should not look at properties until they are fully prepared with their business plan, financials, and loan pre-approval, because listing agents remember 'tire kickers' (unprepared looky-lookos) and this reputation spreads quickly through the industry, making future transactions more difficult.
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Don't Look at Gym Real Estate Until You're Ready (Here's Why) #shortsAdded:
The one thing I advise people, do not go looking for properties before you're ready to be looking for properties. What you don't understand about the commercial real estate industry, if Mateo goes and starts looking for a building for his gym, and he's not really ready yet, he just wants to day he wants to go window shopping, he calls a listing agent, the listing agent assumes he has his [ __ ] together, meets him there on a Tuesday, shows him around. Then he has that listing agent show him another spot and maybe another spot. After a couple conversations, the listing agent is like, "So, you got your business plan, your financials, are you pre-approved for the loan? Where are you at in your process?" "I'm just looking."
Instantly, that listing agent goes to everyone in his firm, they talk. I have got brought into a deal where we signed a client like, "By the way, I was looking at some things ahead of time."
Like, "Oh, you [ __ ] idiot, why did you do that?" Because now I go in and like, "Hey, I represent so-and-so."
They're like, "Oh, that guy? He [ __ ] wasted like four of my agents' time two months ago looking at stuff. We call like a looky-loo or a tire kicker in the industry. Doesn't have his [ __ ] together." That reputation spreads like wildfire because all these guys get drinks together after work and play cards or whatever, go play golf together.
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