The 3D Approach to succeed in Real Estate sales

In my role representing private offices, family offices, corporate investors, and private investors, my primary objective is to secure valuable real estate opportunities. These opportunities range from acquiring hotels and apartment blocks to handling commercial real estate assets and specialised real estate financing. The complexity and scale of these transactions necessitate a clear, focused approach—something I call the 3D's: Discretion, Deliverability, and Directness.

The Perils of the 3C's

On the daily, I encounter a staggering number of chancers and outright liars. Transparency, which should be at the heart of any transaction, seems lost on many. Despite stringent regulations and increasing oversight, some parties still engage in what I term the 3C's: cheat, cut corners, and circumvent. This not only undermines the integrity of the industry but also complicates the transaction process, diminishing trust and reliability.

The hotel sector is particularly fraught with challenges. Numerous operators claim interest in buying or selling, yet often, these claims are not backed by genuine intent or financial capability. This dishonesty not only wastes time but also financial resources, leaving well-intentioned Principals and diligent agents out of pocket and out to dry!

Perhaps the hardest lesson has been how many people, even close friends, will try to circumvent - approaching clients directly with other proposals or seeking to cut you out of deals that you have structured. I have never shied away from suing people who contravene non-circumvention agreements, and regularly seek legal recourse for fees from those that play foul. After all, if there is no repercussion for delinquencies, then there is no point having the contracts in the first place, and I will not stand by and endorse criminal & bad behaviour. Circumvention is bad for the client as it exposes them to fraudulent parties, potentially devastating for our business as we lose income and clients and bad for the sector at large which gets tarnished with a brush of criminality and attracting sharks.?

Due to the prevalence of unethical practices and bad actors, I've opted to maintain a small circle of trusted partners and collaborators. While openness to new opportunities is essential, experience has taught me that caution is prudent. New entrants often disappoint, lacking experience and failing to meet the standards of transparency and integrity essential for successful transactions. My advice is to keep your circle small and only deal with people with a track record of success and ideally, with whom you have dealt with previously. If you are new to the sector, get yourself a mentor who can guide you through the industry pitfalls and introduce you directly to reputable parties.

The Value of the 3D’s

After 25 years in Property, working in a cross section of verticals - consulting, marketing, sales, development, finance- I have distilled the recipe to success to 3 key criteria:

Discretion: In an industry teeming with those eager to flaunt and self-promote, genuine discretion is becoming a rare commodity. At BlackGate, we uphold strict confidentiality concerning our clients' identities and the specifics of their transactions. Our discussions are shielded, our dealings discreet, and we never disclose sensitive information unless explicitly authorised by the client.?

Deliverability: I focus intensely on the feasibility and execution of each deal. This means rigorously verifying the credibility of every party and the practicality of their proposals. It’s about ensuring that when we commit to a transaction, we see it through to its successful conclusion. On average, I say “no” or “hard pass” to 9 out every 10 proposals that cross my desk. Saying “no” earlier in the process will save you a lot of wasted time and energy when you have to say “no” anyway in a few months of aimless work.

Direct: In my dealings, I only deal directly with vendors and sellers, and I either work directly with the Principal on the other side, or with their directly appointed representatives such as an agent, lawyer or investment manager. Each additional layer between the principal parties typically introduces complications, increasing the risk of miscommunication and failure. I have had countless situations where people have claimed to be direct to vendors or buyers, only to discover a cacophony of middlemen, each with their hand out demanding unrealistic compensation for their non-contribution. By keeping the chain of communication short, we enhance clarity and have a higher probability of a successful outcomes. Most deals fail due to one of 2 reason - greed or speed: the greed of intermediary players seeking over compensation, or the delays caused by too many middlemen trying to justify their position in the deal.?

Conclusion

Whilst the real estate sector is riddled with pitfalls, adhering to the 3D's—Discretion, Deliverability, and Directness —provides a robust framework for navigating this complex landscape. By focusing on these principles, we can foster a more ethical, efficient, and effective market environment, reducing the influence of those who operate under the 3C's and enhancing the overall quality of our transactions. This approach not only benefits our immediate circle but also elevates the standard of practice in the industry at large.

Author:

Michelle de Havilland, Executive Coach, and CEO of BlackGate, brings over 25 years of extensive experience in the real estate sector, having contributed to numerous global property developments. Michelle is not only a seasoned business leader but also a renowned motivational speaker and TV Personality. For further details on BlackGate, visit www.black-gate.co.uk, or reach out to MD Coach directly for coaching sessions with Michelle at [email protected]. Additionally, explore the MDCoach Intelligence Forum for insightful articles like this one: https://mdcoach.co.uk/intelligence.