Ch. 7 BDCs

Question 1

What are the 3 parts of the BDC code of conduct?

Answer 1

1. When you are new to the business, never call or contact institutions, major companies, or someone on the restricted client list.
2. NEVER call a client that is in any way ‘in play’ on a deal with another agent.
3. Respect other agents’ relationships. If a client says they work with another agent tell the client the other agent is a great broker and politely end the call.

Question 2

Why would an owner sell in todays market?

Answer 2

• Lifestyle and lifecycle changes- Tier 1, 2, and 3
• Problems with partners, management, debt, etc,
• Opportunities such as more profitable ventures, repositioning equity, etc.

Question 3

What should you know about your market? Owner? and Properties?

Answer 3

• Know major deal stories
• Knowledge of historical closing trends in the market
• New sales comps
• All on market deals
• Capital markets
• Infrastructure and demographic trends
• Rents and concessions
• Distressed deals
• Active lenders
• Major employers
• New construction
• Employment trends

Question 4

What is the importance of Suspect Lists?

Answer 4

Allows you to build up as much information about the owner and the deal before you call the actual owner.

Call:

1. Agent that worked deal
2. Lender on deal
3. Seller
4. Buyer/Owner

Throughout this list you will learn as much as you can about the deal, owner, etc, as you can. This will allow you to be as knowledgeable about the deal as possible.

Question 5

What are the 3 types of Interest Generators?

Answer 5

1. Primary: Based on COR
2. Secondary: Based on Local Market, City, State
3. Tertiary: Based on Macro/Relationships

Question 6

What are the steps of a Business Development Call?

Answer 6

1. Intro & Credibility Statement
2. Interest Generator
3. Ask Open Ended Questions
4. Listen for Window of Opportunity
5. Convert Window to First Meeting- set date, time, location.

Question 7

What are some best practices for BDCs?

Answer 7

• Tone and Rate of Voice
• Vocab, don’t use jargon
• Market Knowledge
• Specific Knowledge of Subject Property
• Logical Presentation of message
• Quality of questions you ask and your ability to LISTEN
• Confidence, enthusiasm, belief, and persistence