How One Commercial Developer Stopped A Direct Competitor Through Research

There is a line from the old TV show, The Honeymooners, which I still use when explaining the need for research to accompany a real estate project proposal. It's from the time that Ralph wants money for a business idea and Alice reminds him about the time he invested in a parking lot across the street from a new movie theater. "People will be going to the movies, and they will need a place to park", she says. His classic response of "How did I know they were building a drive-in?" is hysterically funny. It also brings out the point about doing your homework. 

 

One thing about real estate development is that not everyone is on your side. It may be for selfish or competitive reasons, environmental, financial, or even some sort of personal grudge. It's the way things are. Another element of real estate development is, of course, having thorough and excellent research, whether it has to do with the numbers to make the project work or regarding surrounding conditions, demographics, and/or other real estate projects.

 

I'm always asking my clients, connections, and coaching students to consider "what could go wrong" as much as the positives when a new opportunity is under consideration. Since some projects take months or years to get to fruition, it is important to keep asking questions and adding or updating information as conditions change.

 

The below linked article is a classic example of what can happen as time passes and conditions change. It is about how a major hotel project for Los Angeles wound up being canceled after years went by because of a lawsuit. What makes this significant is that, as the story reveals, the lawsuit was brought by a competitor of the developer that now lost out on the project.

 

It is easy to cast an evil eye toward a developer that would do such a thing. That judgement is for another place and time. The point here is that the competitor did their homework and was able to use their valuable research to prevent a direct competitor from starting up in the near future. That information had nothing to do with the logistics of their already operating real estate investment. However, by investigating something which could negatively impact the long-term success of their project, they came up with information which likely means many thousands of dollars more for their bottom line. Some people see this as screwing a competitor, while others seeing it as utilizing research to protect a multi-million dollar investment. 

 

Even if another investor is able to overcome the environmental and other challenges stemming from the lawsuit, the "competing" investor would have years to plan or update their exit strategy if they wish to do so.

 

Another reminder that more than just the numbers need to work for a large scale real estate investment or project to work successfully.

 

https://la.urbanize.city/post/after-legal-loss-la-city-council-rescinds-approval-hollywood-hotel-6221-selma-ave 

 

 

 

  

Proving Your Point When Meeting With The Seller

It is no secret that the real estate market now has even more challenges than it brought a few years ago. What seems to be a secret is that some people in the industry have not yet adjusted their work ethic because of the added challenges. This is the case whether for residential or commercial. The world of rent algorithms, rent control, office to residential conversions, ADUs, data centers, working from home, and several other trends were not prominent if they even existed years ago.

 

As one that keeps tabs on certain agents and brokers over the years, I'm noticing how some of them continue to pursue deals (whether on the sell or buy side) without changing or updating their methods. A question from an investor that is one of my coaching clients earlier this week helped me to realize how I am helping my clients and connections to be able to utilize researching (and the all important digging for research) to their personal advantage.

 

My "student" told me that she found a property that seems to match her criteria, and was going to meet with the seller the next day. (Prices changed to use round numbers) She said the seller initially mentioned $200,000, but when setting up the meeting told her "but I don't think the price will still be $200,000". Her next question to me was about how she should handle that.

 

Next, she told me about one of the comps she found, which was a similar nearby property for $190,000. Next, she talked about another at $210,000, and another for $220,000. She was not sure her numbers "would work" at $210,000. Compounding the problem is that the current tenant in this single-family property was going to be leaving within the next three months, leaving a vacancy. The seller wanted out to use the funds toward a more expensive rental property he is pursuing. This tells us there is plenty of motivation, since the hopeful seller is losing a tenant and wants to move on to a bigger and better deal.

 

Here is where the "work ethic" comment comes into play. I don't know who the seller is, but I would bet the ranch that he expects his eventual buyer to go up from $200,000. My coaching student was concerned about being able to "make this work". I went on to tell her how to "make this work for YOU!" and not the seller. The mission is to compare that $190,000 comp to everything about the listing she "might" pursue. There is the square footage, age and condition of the property, total acreage, location and proximity, and every possible amenity. Upon drilling down on that, look for comps for the $190,000 property and find what you can that is at or below that price. Find advantages that are on par or better than the subject property. Do a print out of everything favorable to go to her meeting with a stack of papers to show the seller.

 

A big part of my coaching is the public speaking and presentation element in addition to the real estate part. My mission was to get her ready to go to her meeting with printouts to prove her research. It was also to start the meeting by saying, "I'm glad you agreed it's not a $200,000 listing". And continue with, "I'm thinking around $185 to $190, depending upon......" and go from there. Next you go into how soon you may have to replace the roof, the HVAC, and so on and how you may "need" an additional credit on the purchase price. There is also pointing out how she would have to spend to market and take on added risk if she could not find a tenant right away. Ideally, by the time the seller could speak, he would be concerned about how much less than his $200,000 he could get from her, or if he would have to start over with another potential buyer. Meanwhile, my student either gets an even better deal on a property she is already interested in or goes on to her next possibility.

 

There are too many people in real estate that never had to make this kind of an effort to get a favorable transaction done. Many of them are not willing to do so. If you are, you could open up an opportunity for a favorable transaction and be on your way.

 

https://RealEstateMediaCoach.com 

 

 

Going The Extra Mile For A Deal - Pt. 1

How much 'power' you have to utilize your business skills could help with how quickly you do (or don't) move a real estate deal forward. There are times when going above and beyond the job description can be what makes it or breaks it. Over the years I have witnessed several instances of making a difference to get a deal done. One example was seeing a broker rent a moving truck for their buyers because the lack of moving expenses nearly stopped their deal from happening. I have seen a completely unrelated business "favor" happen to save the seller a few thousand dollars in return for a real estate price reduction to get a deal done while benefiting both sides.

 

Being willing to personally go the extra mile can directly contribute toward getting a deal done which would not have been completed otherwise. Doing so can also lead to future deals when others get to witness first hand that you are, indeed, willing to do what it takes to get to the closing table. Granted, not everyone keeps notes on people that will - and will not - make the extra effort like I do. Having my personal and private lists of people I know will go to bat to make a certain type of deal happen has directly paid off for me.

 

There are times when there is a need to create urgency to entice a potential buyer or seller into becoming an actual buyer or seller. Urgency does not have to have anything to do with the subject property or opportunity. Like so much in the real estate world, it can be about coming up with a solution. The secret is to find out the motivation, or lack thereof.

 

They won't buy because they don't have a buyer for a property they currently own. They won't sell quickly because they don't have a place to go. Sometimes creating urgency for a buyer or seller makes a deal happen. Sometimes, motivating a broker makes a deal happen. 

 

One example I witnessed was when "Mike", a Managing Broker, went to a morning local realty association meeting attended by brokers from various offices within the area. After the featured speaker, the host would allow a few minutes for brokers to present new deals to the group. Mike raced up and said he has an urgent deal, and "will ADD $10,000 to the commission for the agent that brings me the eventual buyer by 5:00 this afternoon!".  He went on to talk about the (approximately $600,000) listing and its features.

 

Since I had done some work for Mike in the past, I was able to ask him why he was so anxious to get that listing sold that he would give away $10,000. He told me it was because the seller was anxious to buy an (approximately) $800,000 house through him, but could not do it without selling his current residence. Mike "didn't care" about the selling commission because the buyer commission on the $800,000 deal would be the big payoff.

 

What happened? Mike's offer did not produce the eventual buyer that same day. However, a couple months later, he got a deal through one of the agents in that audience who remembered his aggressive approach toward getting a deal done. Mike also got to keep his entire commission. That was a lot of pay for going the extra mile.

 

 

 

Making Time To Get A Real Estate Deal Completed

Let's face it. We all have a love/hate relationship with time both within and away from real estate. How you approach it could be the difference between a successful or a "lost" real estate project. I had a real estate investor student I was coaching and she had found and vetted an upcoming deal. Our scheduled time began with her telling me how much she had to get do within the next couple of weeks in order to make her transaction happen. She saw it as a big problem because she still has her "day job" (that she can't wait to get out of) and her other personal obligations to contend with.

 

Her concerns included monitoring the paperwork for the new LLC she formed specific to this investment, preparing her new website and social media strategies to market the property she was about to acquire, final reviews of all of the paperwork, coordinating with the title company, and having contractors ready to go. She was overlooking the good news that, to this point, there was nothing out of the ordinary which needed addressing in order to make the transaction happen. "I don't have the time it takes to get this done!", she proclaimed.

 

Time management is typically not something I go into when coaching real estate investors or brokers. However, I knew this was the solution to what she envisioned as being a big problem. Some of the "work" she needed to do could be done during non-business hours including the weekend. I let her know that her problem is NOT a real estate problem, and for that she should be thankful. It is a "simple" time management matter.

 

My suggestion was to clear 30 minutes per day for the next 10 days, including her weekend. By doing so, I reminder her that the time would total five hours. I quickly followed by pointing out that the tasks she was faced with should not take up that many hours, and her tone changed as she agreed. Next, I pointed out how this gets her necessary tasks to be able to close on the property completed in well under the two week time frame she has. The line I used to close her on this idea was to point out that she "can use your EXTRA time to work on your website and social media" to get a head start once the property closes.

 

To me, I did my job as her coach because I was able to turn her important real estate concern and "need" into a positive. At that moment, my student got the vision how how she could "easily" get the same tasks completed she was terrified of completing minutes earlier. This is very similar to providing a buyer or seller with the vision they need to want to pursue a transaction. Many people benefit from a successful transaction. 

 

By the way, she found the property she was so anxious about upon utilizing the research techniques I had previously explained to her. No one else, including myself, found her that opportunity she was about to close on. Those of us involved in making real estate deals happen need to be doing whatever we can to provide solutions for others.

 

 Real Estate Media Coach

 

 

Sometimes You Can Have Too Many Real Estate Investors

A big part of the reason I emphasize doing a lot of research in advance so much is because of the time and money it can save by identifying a potential problem before important decisions and financial commitments are made. There was a recent situation one of the real estate investor clients I coach brought to my attention that is an excellent example.

He was about to be part of a four person investor group for which each person would commit $50,000 to start. As wonderful as having that opportunity could be, he expressed to me that one of the people was “not agreeable” to the majority of properties the group was already considering for its first combined property investment. It was understandable that he was worried that it may take them longer than he would like to reach that decision. He pointed out that he and two others were in agreement on wanting to pursue a couple of properties, but they keep getting shot down. Now it was my turn to help him create a strategy for dealing with the “disagree” investor, since that is what I was hired to do.

My answer was in the form of a question. “Why can’t the three of you in agreement form an LLC with $150,000?” My client paused and was not responding. I went on to add that there is a way all four of them could work together, suggesting that he continue to send the fourth investor investment proposals for her review. “If you come up with one she likes, form a separate LLC to accommodate that deal.”

From my perspective, that situation needed to be about my client being able to leverage his available funds toward a real estate investment he found viable. Having two other investors agree and wanting to move forward with him should not be taken lightly. It was possible that the properties the group of three wanted to pursue may not have been in range with $150,000 (instead of $200,000), the collective resources of three investors might be able to put something together to make it work. If not, the three know what to look for when finding another opportunity. Or, maybe the fourth person would agree with something they found and add her share to the down payment or possibly enable an entire purchase.

The thinking behind this solution is that my client’s “problem” opened up for multiple solutions. It did not have to block the LLC and investing path from happening. My client’s reaction was “What a GREAT idea! Thank you Dave!”.

All I did was share my philosophy of asking how something could happen instead of focusing on why it couldn’t. 

 

https://RealEstateMediaCoach.com  

 

 

 

 

The Federal Research Funding Impact on Real Estate

It's an unfortunate way to make a point, but after months or years of doing all of the work involved to prepare for multi-million dollar construction projects, several are being placed on hold. The reasons have nothing to do with the real estate side. Research, properties, infrastructure, and preparation are all in place leading up to the projects. 

 

However, outside funding concerns are the cause of the "hold" on several projects. I'm constantly preaching to my clients, students, and connections about doing plenty of research with an eye toward the entire picture. You have to ask, "What could go wrong?" and it always helps to have a develop an alternate and/or exit strategy in preparation.

 

Several large universities are placing construction projects on hold, and it is due to cutbacks in federal research funding. That has nothing to do with real estate, but everything to do with spending millions of dollars on planning, construction, and personnel. What happens next?

 

Those in charge at these universities will soon be faced with major decisions which impact their bottom line, the density of campus, and the lives of personnel. Research funding for the current projects may or may not return. The properties earmarked for these projects continue to be subject to property taxes and maintenance costs, even if empty or still vacant land. Does the school look into another project or opportunity which utilizes the current available space? 

 

That is not for us to answer. What is interesting is to see how these university officials react within the next 12 to 18 months. The point is that they have already done their real estate research and know exactly the building they can have, access and safety, infrastructure, parking, and so on. This situation provides millions of reasons to prepare for any and every eventuality in real estate.

  

https://www.insidehighered.com/news/business/physical-campuses/2025/06/16/federal-funding-uncertainty-halts-construction-projects 

 

 

 

 

Take Flight of Airport Real Estate Opportunities

It has been in the works for a long time but ground was finally broken for a new brand name hotel in Indianapolis International Airport. There will be an economic gain for the Airport and for the City once this project is in operation. However, whether you are in the Indianapolis area or not, what does this mean for commercial real estate?

 

Let's face it. Other hotels near the Airport are likely to lose revenue as overnight guests choose a more convenient setting. The number of single night stays will probably drop. Supporting transportation services, nearby restaurants and bars, and possibly entertainment venues will lose customers that will have no reason to venture away from the hotel. 

 

Some will see this news and move on, thinking it doesn't impact their commercial real estate lives. And some of them may miss out. If you own or are thinking of investing or owning commercial property within proximity of a major airport, you need to be aware of possibilities which could negatively or positively impact your business. 

 

For example, an investor might be able to get a good deal on a hotel property near the Indy airport by pointing out the potential loss of business. Perhaps they see the need for a conference or convention center which could thrive in proximity to thousands of travelers from other parts of the country.

 

Could this happen? You don't know if you don't do the research. Let this be another example of how having the right information could turn into a huge real estate opportunity. 

https://www.wthr.com/article/news/local/indianapolis-airport-authority-breaks-ground-new-hotel-westin-construction-terminal-campus-midfield-2027/531-7bde189c-4761-40b5-8108-6d21db34cdad

 

 

 

Short-Term Plans With Long-Term Rental Implications

I normally don't focus comments on a move within one specific company but I see enough reasons to make an exception. Many of my valued clients, students, and connections are involved with (or working to be) short-term rentals. We continue to see some municipalities accept short-term rentals while others continue to fight it. Meanwhile, we have even more associations and developments seeking to limit or eliminate short-term rentals.

 

There continues to be situations in and around big cities where we have some communities allowing it being close to communities which restrict short-term rentals. Investors and owners already have the challenges of making sure their business can continue as it is currently established.

 

The "one company" to focus on for the short-term (pun intended) is AirBNB. They just named a new Marketing Director, whose emphasis will be on "marketing, research, and creative" for them. The fact that an established company dominating their industry is adding a key position to focus on research and creative is often the point of my posts, but not in this case.

 

This important personnel move tells me that AirBNB needs to have some key personnel involved in the "fight" to keep their concept viable as more municipalities crack down. Meanwhile, they still need to have the creative strategies for client growth in place to ward off their competitors like VRBO and Booking.com.

 

With the growth in domestic travel evident over the past few months, there will be increased demand for leisure travel stays. At the same time, landlords and investors need to be on top of possible actions by municipalities and associations which could drastically impact their ability to do business where they currently are. 

 

Although the numbers need to work for a property to produce the hoped for income, information about what the near future holds can be even more valuable.

 

https://news.airbnb.com/rebecca-van-dyck-joins-as-chief-marketing-officer-hiroki-asai-named-chief-experience-officer/

 

 

 

A School District Becomes A Real Estate Developer

A new affordable housing development in San Francisco gives us reason to see the case for totally opposite viewpoints for the same project. The spirit of the San Francisco Unified School District to take all of the time and steps to provide housing for educators that allows them to live in San Francisco is admirable. However, their taking on this development when they are not real estate specialists could also have ramifications. 

 

This was a $105 million project, and created and completed on property owned and operated by the School District. There was no need to purchase land, while planning was performed within the reach of the organization, which is there for educating local students and not for planning and developing real estate.

 

Reports say that teachers actually had a say in the design of the combination of studio to three bedroom units. There are plenty of residential developments completed without any input from the intended tenants. Since this development sits on land already owned by the School District, it is likely that no real estate brokers were involved. Other real estate professionals may not have had opportunities for work typically associated with a $100 million dollar project.

 

If this project goes on to be successful (and we will know within the next year), chances are other big city school districts would consider a similar approach. Those school districts would have a means to attract the highest quality teachers because of this amenity. But what does it mean for real estate professionals, lenders, and contractors?

 

This is all another example of why it is so important to research at all times. Being prepared for exactly what could come your way, favorable or otherwise, is a big part of the battle.

 

https://www.fastcompany.com/91344819/san-francisco-affordable-housing-for-teachers

 

  

Why Real Estate Professionals Need To Be On Guard

Marketing of residential properties is on the way to becoming even more complicated while real estate professionals continue to get trampled on instead of embraced. The more agents and brokers I talk with, the more fear I am hearing.

 

Agents and brokers already didn't like Zillow because of how it shares a lot of information that consumers used to only to be able to get from agents. However, these days that is only the start. Zillow appears to be behind legislation pending in Illinois (for example) to require homes for sale to be on the MLS instead of initially on independent services which limit how some properties are marketed and offered.

 

One could argue how Zillow is not a real estate company and is using their power as a tech company to leverage an entire industry in their favor. Real estate agents are already facing challenges because of last year's buyer commission changes. Those were passed supposedly to reduce or eliminate buyer commissions even though months later there is little to no evidence that buyers are saving anything.

 

The problem now is that Ai is a big part of Zillow's success, and its plans to use legislation to increase its presence in an industry it is actually not a part of reflect that. There are more and more agents and brokers that have embraced Ai and make it a more prominent part of what they do. However, that same technology is now on its way to wiping out their income.

 

More than ever, it is crucial for real estate professionals to distinguish themselves from others and offer unique and solid solutions. If everyone starts using Ai, consumers won't be able to tell them apart. That is, if they even have the opportunity to deal with any remaining agents.

 

Be careful what you wish for.

 

https://www.thedailylistings.com/blog/zillows-takeover-real-estate-industry-path-monopoly/

 

 

The Financial Losses From Not Inspecting Will Floor You

Real estate investors, developers, and brokers should always consider "What could go wrong?" when considering a transaction, project, or renovation. I'm constantly preaching this to my valued students, clients, and connections. The next part to gaining an understanding of what could happen is to have, at the very least, a general idea of how you might go about solving the problem.

 

If you uncover something that could be a major problem that would cause financial (or other) harm, it might be worth reevaluating whether or not to continue with the deal. 

 

However, you can't always predict what could go wrong. The (below linked) article about serious problems with faulty construction is an example. I'm sure the developers and managers never thought to check the level of the floors before signing off on completion. That lack of action is proving costly, and in ways well beyond the likely financial impact. 

 

Although this incident takes place in a hospital building in Canada, the fact is the situation could happen just about anywhere. There are lessons to be learned here for all concerned. People that recommended or approved the contractors involved now need to do major damage control in order to keep their current book of business. 

 

The lesson is to go as far as checking levels of flooring and shelves upon completion, but before approval, of final construction. Someone could have been a big hero if they had, even if a broker, contractor, or vendor not directly involved in the mishap which created the problem.

 

Over my years of working with investors, brokers, developers, and other real estate professionals, I have received some flack for double checking work and administration of elements of a project I was involved in but which were not my direct responsibility. The below linked article serves as another example of why I do. I never would have thought to have someone check the level of the floors - until now.

 

 

https://www.cbc.ca/news/canada/toronto/humber-river-hospital-floors-lawsuit-1.7546364   

 

 

 

How Much Impact Could The Move-In Fees Legislation in NYC Move The Needle?

There are many real estate professionals, developers, and investors not in the New York City area that think that what happens there does not impact their business. While that is true in many instances, there is the need to be aware of what "could" happen and how it could impact a current real estate investment or a pending or "under consideration" transaction in other parts of the country.

 

The story (linked below) about the current fight against legislation impacting rental agreements and move-in fees in New York is one example. If it happens in NYC, you can bet that other municipalities are going to look for advantages for their city. By lowering the costs for tenants, it gains favor for the politicians behind it. In some situations, added fees are an important part of the income plan for a property. If those 'added fees' are reduced or eliminated, it could impact your bottom line (or those of a valued client).

 

This is why it is important to be aware of what could happen, even if it's months or years away. Knowing you could lose X% of your annual income because of a change in regulations could be a reason to sell or make another change. However, my point in bringing this up is that it could be a reason to acquire a property.

 

Finding out about new legislation, regulations, or proposals before your competition does could be the edge you and your team needs to make a deal happen in your favor.

 

No matter how "busy" your schedule is right now, there is every reason to continue to include time to research to protect your current clients and properties along with what "could" happen down the road which would benefit you for the long run.

 

https://nypost.com/2025/05/30/us-news/nyc-broker-fee-law-which-protects-tenants-from-costs-challenged-by-real-estate-agents-in-11th-hour-push/