At least this was one of several opinions I received the past two weeks when I asked some 800 members of our Linkedin Group – CRECoach – why they thought commercial real estate brokers are so reluctant to invest in themselves.

We had a robust online discussion, with opinions provided by some of the leading commercial real estate minds in the brokerage industry.  Do I agree most commercial brokers are cheap?  Let’s just say the majority of commercial real estate brokers lack the vision, understanding and/or confidence to invest in themselves.  

In contrast, top producers and consistent performers do not hesitate in investing in their business; whether it is new technology, hiring administrative help, attending a tradeshow, participating in a training webinar or hiring a commercial real estate coach.  Top performers understand they are their greatest asset.  So naturally, they must invest in themselves.

Doug Wolf, of REA software suggested “Brokers fall victim to the e-myth, always working “in” the business and no time for working “on” their business. When the flow of deals is slow, the compulsion is to act to generate more deals, but then when busy, no time to invest.”   Right on Doug!  There is a common misperception among brokers that their number one priority is to close deals.  The fact is their number one priority is to build a business that leverages the broker’s time and skill set to generate a consistent deal flow.  This is not the same thing.

Jim Tucker, CCIM and owner of NetworksCRE felt the issue was deeper than that.  According to Jim “brokers are not inclined to invest in a “fix” until they clearly understand what needs to be fixed. Most of us don’t want to know what is wrong with us and therefore never will be willing to take the “cure.” When one is wise enough to enlist the skills of someone who can help us recognize what we need, then we have a better chance of making the decision to do something about it….and possibly even pay for it.”  As always Jim’s profound insight has strong merit.

Bob McComb, who created Top Dogs, a CD-based training program, which has an excellent reputation for assisting new to business brokers get off to a fast start, felt the issue was more one of the broker becoming more open minded. “Generally speaking, most of the also-rans in CRE will do pretty much anything to be successful except read about it or think about it. Conversely, ALL the top producers I have met are all on a self-development path…. They never ask themselves “will this program benefit me?” Instead they ask, “how will this help me to get better?” and “where do I enroll?”

Jim Garrett Jr, MCR and Chief Operating Officer of Colliers International’s Ohio offices shared a very telling story.  “I had an agent tell me one time he felt that commercial real estate agents invest more annually in their golf games than they invest their professional growth.  I then challenged the next 20 agents to whom I spoke with. With one exception, they all agreed in the assessment. The one who disagreed is probably what most would call a “Ten Percenter”.   Is it because they don’t see their business as “their” business, rather they see it as the broker’s business?” 

All those participating in the CRECoach group discussion had similar comments. Kevin Fitzgerald, CSE who now heads the leadership council at NAI Global added “It’s been my experience Commercial agents and brokers alike see the investment not as a necessary event but as an expense. If they could just see the benefit of the investment before the investment has to be paid then they might realize by not investing their progress will be much slower.”

And therein lies the obstacle for most brokers who continue to struggle in the business, and are not consistent producers.  Investing in self development is simply that; an investment.  Like all investments there is a level of risk with anticipated returns.  Expenses, by definition, have no risk, and appropriately have zero return.

There are truly scores of platforms and programs where an indvidual can invest in him or her self.    However, commercial real estate brokerage is not a risk-free business.  If someone is not willing to take on a little risk, then they are most likely not willing to invest in themselves.  If this is the case, it is not necessarily an issue of being “cheap”, but rather it is more likely they are in the wrong business .