Latest / Beyond Fulfillment Podcast / Commercial Real Estate Reinvented: Putting the Client First with George Pino
Transcript
- 0:04Unfortunately, a lot of people have fallen into this trap of, you know, well, I deserve this, I deserve that.
- 0:10Well, what you deserve is really what you earn.
- 0:17All right, George Pino, welcome to Beyond Fulfillment.
- 0:22Thank you for having me.
- 0:23David.
- 0:24Yes, sir.
- 0:25We're excited to have you and have this conversation.
- 0:28So George, you are a co founder of Commercial Brokers International and you've had a very successful career in commercial real estate for the past 30 years.
- 0:40Can you just talk about your background and how you got into this space?
- 0:45Yeah, absolutely.
- 0:47You know, I've been lucky enough to be, have, have been in this industry for over 30 years.
- 0:53And frankly, like a lot of people, I fell into it by accident.
- 0:58So you know, I had, and, and it's, I was actually just telling the story the other day someone was asking about how I got into the business.
- 1:06And in college I had started a business for myself and it was doing very well, but it was very seasonal and it's perfect for a college student because I had summers off.
- 1:18Well, I can, I thought I was going to continue that business.
- 1:21I decided to do so, but it happened to be right after I graduated and it was that seasonal transition period where I wasn't really having any business.
- 1:30And a buddy of mine called up, said I'm working at a new company.
- 1:33Do you want to make, you know, a few thousand dollars for a couple of weeks worth of work?
- 1:39And I thought, you know, what the heck, why not?
- 1:41And sure enough, within a week or so they actually offered me a full time position.
- 1:48And I thought about it and I said, you know, there's actually, I think more opportunity here in real estate than there is in my business that I had.
- 1:56And it wasn't necessarily a path that I had originally thought about, but looking at it and looking what they're doing, I, I thought, you know, this is something I could do and I think there's more opportunity here.
- 2:06So jumped into that and that was actually doing real estate auctions.
- 2:10And that was right after college.
- 2:12And I ended up jumping in, learning quite a bit about general real estate itself.
- 2:17And you know, through a lot of hard work I was able to rise up fairly quickly within that company.
- 2:23Opened up several office them around the country and unfortunately they went public.
- 2:28I got, I was one of the casualties of going public, meaning middle management, getting paid too much, getting laid off.
- 2:39And you know, immediately right after that when I, as soon as I got laid off, I mean my first call was to a competitor.
- 2:47They offered me a job on the spot, but I would have had to pick up and Move.
- 2:51And then my current business partner, we talked about it, and he said, you know what, I have a opportunity where I'm starting a real estate auction company for a gentleman up in Los Angeles, where we're at.
- 3:02And he said, if you're interested, let's sit down and talk and let's talk about a partnership.
- 3:07And we've been partners ever since, since 1993.
- 3:09And that's kind of how I fell into the business.
- 3:12And then from there, there's been a couple of evolutions.
- 3:15Obviously, we were sold a couple of times.
- 3:18Initially, right after the.
- 3:22We grew to the number two real estate auction company in the nation and that the gentleman that owned the company decided to sell.
- 3:32At the time, we were too young, didn't know about asking for equity for helping set up a company.
- 3:37We were happy to have a job.
- 3:39And so we ended up getting sold and that when we got sold, they decided to close that division down.
- 3:47Once they closed that division down, we were actually put in contact with another gentleman that wanted to open up a commercial real estate division for his large residential firm.
- 3:57And initially we told him no because we were doing quite a bit of investments ourselves, and that investment company was taking off pretty well.
- 4:03And.
- 4:04But he all of the, you know, godfather made us an offer we couldn't refuse.
- 4:09It was a very much a win win proposition and also became a really good mentor of ours.
- 4:15So.
- 4:16And that's ultimately how we started.
- 4:17We started his commercial real estate division for him when he sold his company.
- 4:22We actually ended up starting our own company back in 2005.
- 4:24And that's the genes of Commercial Brokers International.
- 4:28Okay.
- 4:29All right.
- 4:29Appreciate all the background there and a lot to unpack there too.
- 4:32So let's talk about the, the first auction company that you're part of.
- 4:37So.
- 4:39And I don't know how big that space is, but growing a company that.
- 4:43That was a startup to the number two company in the nation.
- 4:47I mean, what, what was that process like?
- 4:49And how did you.
- 4:51How did you play such an integral role there?
- 4:54Well, the, the process was a lot of hard work that if it wasn't for youth, I don't know if I could replicate it today, you know, I mean, we literally were working 16 hour days, at least, you know,
- 5:08every day.
- 5:09You know, Saturdays and Sundays we would work as well because, you know, it was, you know, eat what you hunt basically, and get the business.
- 5:18Now the beautiful part was there were really only three large real estate auction companies at the time.
- 5:24The company we were at was the number one company, and they were the largest out there, and they were international and.
- 5:31But at the same time, when I started with them, they were a smaller shop, 30 or so employees, and they grew to a very large international company where I was opening offices for them around the country.
- 5:45When we got laid off, the company that wanted to start up a new real estate auction company, it was a gentleman by the name of Fred Sands, and he had at the time the largest residential real estate company
- 5:58in the United States, over 2,000 agents.
- 6:01And so we leveraged that, but also leveraged what we knew about the company that we were at for many years.
- 6:10I mean, I was at the previous company for six, seven years.
- 6:14And we leveraged what the, what the weaknesses we saw and felt were and how we could do it better.
- 6:22And we were able to outperform them to the point where, you know, and, and we're talking thousands of properties a year that we're selling.
- 6:30You know, we'd have multiple closings a day.
- 6:33And when we got to that size, I mean, I actually, I still remember when I knew that we were actually having an impact and how large we were becoming when the competing company or the company that we came
- 6:50from, we were up for.
- 6:52We were the only two companies up for a very large portfolio.
- 6:56A company out of Miami and with offices in Dallas, they had bought 10,000 properties or homes in southern California, and they were going to auction off about 3,000 of them.
- 7:08They bought them all through the reos and the banks, the great Western Bank, Washington Mutual, the companies that pretty much aren't around anymore.
- 7:16But they bought a portfolio of about 10,000 properties.
- 7:18They're going to sell 3,000.
- 7:20And we're all excited about that.
- 7:22They came to us and they, at the meeting we were told, you know, what we're going to do is we're going to give you half.
- 7:31We're going to take 450 properties to auction.
- 7:33You're going to get half roughly, and your competitor, where you came from, is going to get the other half.
- 7:39And whoever does better gets our business for all 3,000 properties.
- 7:44I'm ecstatic because I know I can.
- 7:47We can outperform them.
- 7:48I know that we, you know, we knew their weaknesses.
- 7:50We knew how we could be able to outperform where we could outperform and how we could do it and do it better.
- 7:56And we're extremely excited about that opportunity.
- 8:02Cut to getting on the flight, coming back, landing in Los Angeles.
- 8:06You know, it's only a three hour or so flight, but, you know, total five hours.
- 8:10We, there's a Voicemail message, you know, hey, we're talking to your competitor.
- 8:14We told them the plan.
- 8:16They said that they would do your half the auction for free with no commission or marketing money.
- 8:21And so we're just going to go with them.
- 8:26So I knew we were at least having a, I mean it was bittersweet obviously, you know, being able to grow to a position where, you know, that we were competing against a company that had laid us off and
- 8:39taking away millions of dollars in business from them within years or so, a couple of years and from there, but at the same time losing out on a sale of 225 properties.
- 8:56So, you know, a little bittersweet, but at that time that's when we kind of realized that we were actually growing it.
- 9:02And a lot of it was this is back in the day before emails, this was back in the day before, you know, the Internet was still there but you know, we were doing open outcry auction so it was
- 9:11really hard to convince people to do it.
- 9:14But it was all personal hand touch.
- 9:16So a lot of was cold calling.
- 9:18We'd wake up, I would start cold calling at 6am and you know, when new air chains asked me how'd you cold call at 6am I'd cold call time zones because the people that our clients were banks, institutions, financial
- 9:32institutions, private equity companies that were all around the country.
- 9:36We would literally start at 6am making phone calls, calls to the east coast, work our way from the east coast to the Midwest based on the time zones, all the way through the west coast, all the way to
- 9:45Hawaii from there.
- 9:48In the late afternoons we would stop calling and start hand typing notes to every single person.
- 9:53We talk, talk to every single person, got a hand typed written note with a hand signature on it and, and then we would mail that out that day and then follow up with them again.
- 10:04And it was really just that old school methodology that really was able to get us to that, that and being able to perform, you know, there's always that too, but being able to perform or outperform the, the clients.
- 10:17But that ultimately was how we got the business.
- 10:19It was just, you know, I'd love to say it was from connections and that we're so smart and whatever, but no, it was just hard work, dedication, persistence and you know, being able to convince people to trust us.
- 10:36And so when you're doing that too as a young kid starting off, you see this opportunity and you're putting in those type of hours and maybe for the younger people listening, they would be hard to even imagine that
- 10:49type of, you know, world with, with no email and it's, it's all, you know, cold calling, which is not, you know, it's much different today.
- 10:58I mean, we're.
- 11:01Was there.
- 11:01Did it take time to break through?
- 11:03Was there time where you're just, you're doing all that and you're not seeing results, but you just continue to persist?
- 11:09Absolutely.
- 11:11You know, I, I think, you know, we were again lucky in that we understood, I mean, we, we understood all aspects of the real estate auction business.
- 11:23And we also understood because there's limited competition, who our competitors were and what their weaknesses are.
- 11:31So we're able to position it like, okay, this is how we can fix things.
- 11:34This is how we can do it better, cheaper and get better pricing.
- 11:37And, you know, part of that was also realizing at a certain point when you're young, you only have one asset really, you know, and that's time.
- 11:49So I have two choices.
- 11:50I can either make the time to do the work and get to where I need to be and want to be, or I can take my time.
- 11:57And you know, it's, it's that old, it's that old adage of sacrifice, you know, like work life balance.
- 12:06And you know, there's another.
- 12:13Cohort or associate, not with our company, but he owns another company.
- 12:18But he was interviewed a little while ago and you know, what was interesting was he had a very similar story in that, you know, everyone was talking about work life balance and how you could do that.
- 12:30And he goes, well, I would argue that right now, at my age, I have better work life balance than anybody else at my age.
- 12:37And the reason for that is because I sacrificed.
- 12:40You know, when I was younger and 20 years old, I didn't have a family, so I had time.
- 12:44I would spend 12, 14 hours working every single day and then working the evenings to set my day up.
- 12:51Next it was, did I have much of a social life?
- 12:54No.
- 12:55But right now I'm 45 years old.
- 12:57I volunteer for every single one of my kids classes.
- 13:01I'm there every multiple classes a week, volunteering.
- 13:05I'm at every single one of their games.
- 13:07We take multiple family vacations every single year.
- 13:11I would argue, and I don't have to work.
- 13:13I can retire at any time and therefore be able to spend as much time as I want with my family and doing things that we love.
- 13:21So he goes, I would argue that I have a better work life balance than anybody else my age.
- 13:27And it's all because of the sacrifices that I made before.
- 13:30So that's how, you know, we've looked at it and it was a very similar story that, you know, you have.
- 13:36When you're young, your main attribute or what you can offer them is time.
- 13:42You know, you don't have that many clients.
- 13:43I can give you more time to be able to focus on you, yourself, your client.
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- 14:37Have fallen into this trap of, you know, well, I deserve this, I deserve that.
- 14:42Well, what you deserve is really what you earn.
- 14:47Yeah, love that.
- 14:49All right, so George, let's talk about your, your current company, Commercial Brokers International.
- 14:55So you, you and your partner started that in 2005.
- 15:00So talk about what you there, what you do there and the trajectory of that company.
- 15:05Okay, well, Commercial Brokers International, we are full service for service commercial brokerage company.
- 15:12We started in 2005 and it was actually because again that company that we previously that we started, the commercial real estate division was actually sold.
- 15:22And at the time we had an investment company, it was going very well.
- 15:26We were actually going to focus on that.
- 15:28It was not really our initial thought to create another brokerage company for ourselves.
- 15:33And what ended up happening though was, you know, we were skiing at the time we got the news that we're shutting down.
- 15:39It was December 9th and we're shutting down December 31st.
- 15:43Not much lead way of time.
- 15:46And initially my business partner and I were skiing together along with some of the agents that we'd recruited and trained and were part of our, part of the team that we brought on board.
- 15:55And you know, we thought, okay, you know what, no worries, we'll just focus on investments.
- 15:59And we broke for lunch again.
- 16:02And at lunch we both looked at it goes and we said, well, what are we going to do with the agents that we brought on board?
- 16:08How you know, they trusted us to come on board over here.
- 16:11And then all of a sudden there's no company for them.
- 16:13So we started making calls.
- 16:15I found a couple of shops that would take them on and a handful of them came to us and said, you know, you have your broker's license.
- 16:24If you start a brokerage company, then we'll come on board and we'll come with you.
- 16:31And although it wasn't our first thought to do that, it was what we felt was the best thing and the right thing to do.
- 16:39People that trusted us, they're asking us to help them and continue.
- 16:42We felt it was the right thing.
- 16:43But we also felt that if we're going to do this, we're going to create a company that addressed concerns that if we were an agent, one, we would want to be there and two, if we were a client,
- 16:53we'd want to use them.
- 16:55So Commercial Brokers International actually did start off as the initial CBI and the initial stood for client's best interest.
- 17:04Because in 2005 and even today, I think most commercial brokerage companies don't have the client's best interest in mind.
- 17:10They're more interested about making the transaction happen and chasing a deal and making a commission versus creating a long term relationship and guiding and working with that client and looking at.
- 17:22And the only way to do that is by understanding what they're looking for, what their goals and objectives are and fulfilling that for them.
- 17:30Basically looking out for their best interest.
- 17:33I think that there was a lot of issues with transparency, especially back in 2005, that's cleared up a little bit more, not as much.
- 17:39So we addressed a lot of that, of how our company is going to step forward and do business.
- 17:44This is how we're going to act, this is how we're going to react.
- 17:47This is how we're going to handle agents that are maybe a little bit more.
- 17:52Maybe not up to our standards as far as being scrupulous or unscrupulous and, and things like that.
- 18:01So we actually had a plan of action that if we're going to do this, we're going to do something that is actually meant to give back.
- 18:07And also every single one of our companies that we have also has a giving back component that we try and do things to help the community.
- 18:14You know, for instance, this weekend where we planned a.
- 18:19The Santa Monica promenade has been having a very difficult time in downtown Santa Monica in general for the retailers.
- 18:26So we decided to bring people back in conjunction.
- 18:29A client of ours.
- 18:30We're holding an exotic car show right after the farmers market.
- 18:33We're in conjunction with the city and we're shutting down two blocks of a street right at the promenade.
- 18:41In addition to that, our agents then went out and they talked to all the retailers in the area and they worked out deals that they can actually get discounts in for people that come to the car show which
- 18:51now.
- 18:52But at the same time it just boosted our agents careers because now they've talked to every single decision maker in that area.
- 19:00And so it's a win win situation.
- 19:02We're bringing people in to try and give back to the community.
- 19:06We're hosting this event, not asking for it.
- 19:08There's no payment, there's no tickets or anything else.
- 19:11And then we coordinate all the retailers and all the other businesses in the area so they can benefit from it as well.
- 19:17And you know, that's been our core for Commercial Brokers International that we want to be able to give back to the community and really provide the best service and keep the client's best interests in mind for that.
- 19:30So we do everything from leasing to sales.
- 19:33I have 27 affiliate offices around the country.
- 19:36We can operate in all 50 states and we even have a commercial lending arm that we can do commercial loans, everything from SBA financing all the way through ACT rehab, bridge loans, whatever thing or construction loans.
- 19:53So you know, it's, it's kind of a full service shop but with the customer service of more of a regional boutique type firm.
- 20:04Okay, fascinating story.
- 20:06And I just want to dig into that a little a bit more because.
- 20:11Okay, so the company you're at is you find out they're shutting down.
- 20:16You had done very well there and you had an investments that were doing well.
- 20:20So you really didn't, you weren't worried from your own personal standpoint and you didn't even need to start this other company and you were basically asked to do so by all these agents that wanted to continue to be
- 20:32part of your team.
- 20:34Right.
- 20:34So and then you started and because of that, because you're secure and because you're, you're not just starting it to, because you need to where you have these grand ambitions of growing it to.
- 20:45Some.
- 20:49You know, expanding it for strictly for financial purposes, you're able to make it mission driven.
- 20:55Right.
- 20:55And, and begin to I guess operate and fix things that are wrong with the industry.
- 21:01You know, I've heard other people in the industry say it's broken for several of the reasons you just stated with the, the model and the lack of training and etc.
- 21:10So I mean how important was that and being able to operate and basically not really need to do this to where you could address it and address the issues that you saw and make it more mission driven.
- 21:23Well, you know, it was, it was our key component, meaning, you know, we weren't.
- 21:29I think the issues, a lot of issues that rise within the commercial brokerage field have to do and circle around money.
- 21:37And I understand that when you're a newer agent and you're chasing a deal and you're very hungry, you want to make that deal happen.
- 21:43At the same time for a career in commercial real estate and a long lasting career that you're going to build on, you can't just make that deal happen.
- 21:52You have to make sure that it's the right deal and the best deal for your client.
- 21:55And a lot of times that's not really taught or trained to a lot of agents.
- 22:00For instance, I was interviewing an agent about a year and a half ago that we were recruiting and he asked us.
- 22:13He was an investment salesperson and he was like, well, you know, my company's telling.
- 22:17He goes, how many listings do you have?
- 22:19And I go, I have none right now, why would I want one?
- 22:22Nothing is selling.
- 22:24And his response was that, hey, you know, my company wants us to get as many listings as possible because they say it's good exposure for us.
- 22:34I said, no, it's good exposure for them because they're not paying you and you're meanwhile servicing 10, 15 clients that you're never going to have a sale with because the market's down.
- 22:46You're focusing all your attention on them, so you're not attracting a lot of the buyers or that's coming out of the and wherewithal.
- 22:53So really it's benefiting the company, not the agent.
- 22:57And you know, it's.
- 22:59I talked to him again just recently.
- 23:02In that year and a half he had at the time 16 listings, probably closer to about 20 something over the year and a half or so.
- 23:10He said, one sale.
- 23:14So listings don't equate to sales.
- 23:16So what we try and do is advise our agents on where to go to actually grow their business and how to do it in a very much a structured sense.
- 23:25You know, it's not so much of a company thing as it is the agents.
- 23:29Because the way I look at it, there's two ways that companies look at agents.
- 23:32They look at them as either a profit center, meaning how can I nickel and dine them or get the most out of them without giving them anything, or they look at them as partners.
- 23:41We look at our agents as partners, meaning if I can elevate my agent and have them do more business and be more efficient by giving them the tools to do so, then we both win because they have more
- 23:54business.
- 23:54So they're happy, they're making more money.
- 23:56Guess what?
- 23:57I'm also making more money because my income is directly tied to how much money they make.
- 24:02So, you know, that's a symbiotic relationship versus one that's where there's fees involved or that they're nickel and diming you for little things or they're having you do stuff like, you know what, get our signs and brand up
- 24:14on every building.
- 24:15But we know you're never going to sell it, but you're going to keep working for free for the next year trying to, you know, those kind of things.
- 24:22So we took out that aspect of it and said, you know what, what's good for the agent should be good for the company because that's the symbiotic relationship that most companies should have.
- 24:31And that's how we structured it.
- 24:34Yeah, I mean it makes perfect sense and it speaks to just, I guess how different that is relative to the industry because I mean, the attrition rate is what, mid 90%?
- 24:51Is that right for agents within a couple years.
- 24:54First year attrition rate is on average in the high 80s.
- 25:00Second year falls in the low 90s.
- 25:03Third year falls in the mid 90s.
- 25:06So yeah.
- 25:06Wow.
- 25:07Within three years, over 95% of agents that went into commercial real estate are out of the industry completely.
- 25:14Okay.
- 25:15And so clearly you're doing things differently at CBI and love that client's best interest in terms of.
- 25:21That was the original, the original moniker.
- 25:24And so you're also creating content and providing training at a mass level to just help agents become better, both at.
- 25:34A mass level and also within our company as well.
- 25:37We do training every single day for new agents.
- 25:39Starts at 8:30, goes to 9:30.
- 25:41We have a recap on Tuesdays and Thursdays to help them rewire their thinking.
- 25:46Not so much of a, you know, like, like micromanaging thing.
- 25:49It's more about rewiring so that they start thinking for themselves and how to look at it and how to look go about it.
- 25:55So our training encompasses everything from goal setting to technical aspects to sales pitches to how to go about positioning or looking at even going delving into certain things that, you know, how to increase returns through utilization of different
- 26:11tax strategies and things like that.
- 26:13So we go into some pretty high level concepts as well as the basics.
- 26:17And we do that for the agents.
- 26:20We also do that for our agents.
- 26:22Juniors, because, you know, it's not, it's a senior agent should train a junior how they do their business, but they shouldn't have to train them how they real estate if we're.
- 26:31Especially if the company's already training them.
- 26:34So we take that on as well.
- 26:35In addition to that, you know, we put on a lot of videos about training just for the general public.
- 26:42It's open, it's out there, it's free, it's for any agent that's out there.
- 26:47The conversation I had yesterday, as a matter of fact, I mentioned when I was talking about our background and youth and everything else, like how we got started and what we had to put into it, that conversation was
- 27:02actually with a competing company's agent, agent that found me and to ask me if he could ask some questions because he's starting off and I took a half hour out of my day and time and spent some time
- 27:13with him and said, yeah, here's what I would do differently if, you know, when, from when I was younger.
- 27:17And here's what I would suggest that you do nowadays, especially given what you have.
- 27:22But understand that the company you're with is going to have some constraints over certain things, but you can push that a little bit going this route.
- 27:29So we're giving advice across the board.
- 27:32Again, the way I look at it is if we can better the industry as a whole by creating relationships, then everybody wins, you know, so it doesn't matter if you're a competitor or not.
- 27:48I know my own sales strengths.
- 27:50I know I can compete against most people in sales, but at the same time I'm still going to let people know.
- 27:57And other people have actually asked me, they said they've asked like, why are you giving your secrets away, your training secrets or how you look at things or what do you do?
- 28:06And you know, my bot the way I look at it and I love to cook.
- 28:10So I use this analogy is I'm not giving them the secrets, I'm giving them the recipe.
- 28:16And I know I can right now.
- 28:18I, you know, I love to cook.
- 28:20I have quite a few recipes I created on my own, but I can give a recipe that, that I have to 10 different people.
- 28:29I'll be lucky to have one create the exact same dish I make and or it be as good or better because it's not about the recipe, it's about the execution.
- 28:40It's about how you go about it.
- 28:42It can be a small detail as far as just even how you cut the vegetables, which you know, may be a small detail as, you know, compared in comparison to commercial real estate.
- 28:52It could be a small detail as far as just.
- 28:54Just maybe how you're underwriting a transaction or exit strategies or how you're positioning a release renewal.
- 29:01Little details that really turn it from a Mac and cheese dish to a lobster Mac and cheese with truffle gourmet dish kind of thing.
- 29:12So, you know, it's those stuff.
- 29:14So we may have the same recipe, but it's all about the execution.
- 29:18Yeah, Love that.
- 29:20All right, so, George, if people want to find out more, whether they're in the market for commercial real estate and they potentially want to engage your firm, or if there's agents out there that are hearing this and are
- 29:31intrigued and potentially want to join your team, what's the best way that people can reach out to you?
- 29:37Best way is either through my LinkedIn, which is just a straight George Pino, or my email, gpinobicommercial.com if you do go to LinkedIn, there is another George Pino.
- 29:49He's in Miami.
- 29:50Don't choose him him.
- 29:52Choose the one in Los Angeles.
- 29:53That's me.
- 29:55Okay.
- 29:55All right, we'll link all that in the show.
- 29:57Notes for everyone.
- 29:58All right.
- 29:59Well, George, thank you so much for taking the time to be here and sharing all this valuable wisdom from your journey with our audience.
- 30:04We greatly appreciate it.
- 30:06Thank you.
- 30:06Dave, thanks for having me.