Lynn Richter’s Success Story

As a part of our exclusive Real Estate Agent Success Stories series, we spotlight inspiring stories of the most successful real estate agents in the industry!

In today’s issue, we’re going to highlight the fascinating story of a highly successful real estate agent in St. Louis, MO — Ms. Lynn Richter.

Lynn is a Broker-Officer affiliated with Commercial Real Estate Solutions, LLC, a leading commercial real estate brokerage firm in St. Louis, MO.

Lynn’s impressive achievements:

• closes up to 5 deals per month
• earns $100k – $200k of annual gross commission income
• closes $1MM – $5MM gross annual transaction volume as a single agent
• is proficient in commercial real estate buying and selling and commercial tenant and landlord representation
• has been in business for over 20 years

Read Lynn’s story below to learn how she became a successful Realtor and got to where she is today.

We hope Lynn’s story inspires you and serves as a stepping stone for your own career.

I had already been a commercial real estate asset manager for over 20 years prior to becoming a real estate agent.

I was assigned to all of the different types of CRE properties and the different types of owners. I was already approving leases, renovations, developments, sales, doing all of the budgeting and full appraisals.

I was a generalist, meaning that I had strong knowledge and experience in all of the types of CRE, not just one or two types.

So, when the company I was employed by was offering early retirement packages, I jumped on it. It was the best decision I ever made in my career.

I immediately started to network with other CRE professionals, actually looking for another asset manager position.

However, those were now in the top tier cities, and I did not want to move. I met an owner of a CRE firm which only did tenant/buyer representation and he convinced me to join him.

At the time I was not licensed, as when you work as an asset manager for an owner, you do not have to.

Plus, my properties were all throughout the Midwest. I had limited properties in the St. Louis area. I had to get to know my own market as well as I knew out-of-state markets.

I had to learn how to network with other business-to-business professionals and prospect for business.

I also had to learn how to take the word “no” and turn it into something productive and positive.

As an asset manager, I was the one saying no. I was the one being cold-called, being contacted by entities wanting to do business with us vs the other way around.

While I transitioned to get my broker’s license (which is a must in CRE), I was retained as the underwriter, doing appraisals, and analysis for lease vs buy, leases, investments, and other requirements we were working on.

Once I got my broker license, I focused on my business. However, occasionally the owner and I would partner up to utilize my analytical skills.

Without the asset management experience, I would not have that insight nor the skillset to bring to my brokerage career.

The fact that while I knew commercial real estate really, really well, I did not know how to be a broker.

In fact, I witnessed other former asset managers, other facility directors from large firms struggle with this same issue when they transitioned from that senior salaried officer position to a “mere” broker.

Also, learning to take the word “no” and turn it into a learning experience and eventually a “yes.”

What helped you to overcome those challenges?

My real estate mentor was essential. When I first became an asset manager, I had supervisors, co-workers who I reported to and who mentored me.

As a broker, the owner of the firm was also my mentor. Without his selfless guidance, good advice, and accountability, I do not know if I would have survived an additional 30-plus years in this industry.

Every new agent or broker has to have a mentor. A good mentor. One who looks first at the success of the mentee vs what is in it for them.

As an example, he did not have to strongly encourage me to go for my broker’s license.

He could have just told me to get my sales associate license and for the rest of my real estate agent career, have to be tied to a real estate brokerage firm.

By giving me that advice, he had to have known that there was a possibility that at one time in the future, I would be “head hunted” to leave.

But it was the best advice any mentor could give a mentee.

What was the most stressful challenge you had to overcome during your career?

Overcoming the fear of no income. For me it was not an issue, really because I had my severance pay from my early retirement.

I drew a salary while being the underwriter, and then that salary became a draw.

However, that is not the norm at all. Most agents/brokers start out as a 100% commission producer.

And in CRE, deals can take months, even years, i.e., I just put a property under contract and the real estate due diligence period is 270 days with four 30-day automatic extensions.

You can work on a project for months and through no fault of your own, it changes or collapses.

New agents/brokers should have at least 12 to 18 months of both living and business expenses in reserve.

Clients want to do business with people who are driven, positive, but who have the client’s interests in mind in front of their own.

They do not want to do business with someone who is desperate, too hungry, literally.

When an agent starts to push decisions which are in their interest over their client’s, that is a recipe for disaster.

And a way to prevent it is to have living and business reserves, a budget, a conservative mindset and a good support system, starting with a good mentor.

Getting transactions finished, especially in tough markets where clients have very limited choices and we have to be creative, and think outside of the box. Providing clients with solutions.

Also stopping clients from making mistakes, i.e., I recently showed a client why it would be a mistake to purchase a property.

They decided not to. I could have said, sure, buy it, I get a $65K commission.

But it was NOT in their best interest at all, and they needed to hear and be shown the reasons why. So, just doing my job is rewarding.

All of my lead generation efforts feed off others. Not one is singularly the best. My networking feeds into my quarterly market reports.

They allow me to stay in touch on a regular basis with my network, my clients, past clients, and others who may be interested in information regarding the commercial real estate industry.

I also use them to network with other CRE brokers and residential agents. I receive referrals from both residential and commercial agents as well as my network.

Like my lead generating resources, all of my resources are important. We do not have an MLS and we do not use residential platforms.

Not one single commercial real estate platform is perfect. So, you have to have several in your tool box.

My ability to do research is probably the best “tool” and of course, the internet is the most essential of them all.

I use all of the different platforms, plus my experience, knowledge and expertise, plus my relationships all in tandem with each other.

What software tools have you tried using in your business but found them not useful?

Anything that is developed for the residential agent just does not work for commercial.

We are a business-to-business industry. We represent owners of businesses, of commercial real estate properties.

If another business-to-business entity has specific clients, there is a really good chance that prior to engaging that other B2B entity, they engaged a commercial real estate broker.

As an example, if one of my networks told me about XYZ Company, I would research the company first, then its officers and decision makers.

I would contact them at the office, not at their place of residence.

The latter would be a good way to NEVER get their business. So, I am reaching out to businesses with business needs vs people for personal needs.

Make sure you network with seasoned commercial real estate brokers and get a real accurate picture of what this business is really all about.

Then if you want to pursue it, choose a real estate brokerage to work for that has its own in-house strong education program, including one-on-one mentorship.

Start with the mentor first, as you both decide what education you need. You may find that after actually practicing commercial real estate, the education will make more sense.

You have projects where you can apply what you learned and vice versa. Initially a program like Nucleus, in addition to any in-house programs the firm provides.

After being in the industry for a few years, then [work on becoming a] CCIM (Certified Commercial Investment Member), which will enforce that which you have learned from practicing and from your mentor.

Do not think that enrolling in a real estate school and getting your license is going to prepare you for what you ACTUALLY have to do.

The classes for the license are essential to get licensed, but when you “graduate,” you will not be prepared to start right away.

You have to have a strong CRE firm, a strong mentor, then additional more focused education that is in tandem with the company education and mentoring.

You also should join the commercial division of your local board of Realtors, as they also may have educational programs.

Because licenses are state by state and marketed down to individual cities and metro areas, what is available in one city may not be available in another.

Find suggestions of the best real estate agent coaching programs and real estate mentorship programs reviewed by Real Estate Bees.

— Kimberly Anderson, Senior Creative Editor at Real Estate Bees

In addition to the finance textbooks and class books you receive from Nucleus and CCIM, honestly no book really impacted my business.

You have to practice, have a good mentor, and a supporting brokerage firm. Without those, there is nothing written that will help.

What books may help are self-help books like The Power of Positive Thinking by Norman Vincent Peale, Russell Brand’s books, One Yellow Brick by Melissa Swader.

Another must-reads or watches are commercial real estate market webinars. Sign up for those being offered by CCIM, Moody’s Catylist, large CRE firms, economists, Compstak, etc.

And sign up for SmartBriefs for publications not only in the CRE industry. If you are interested in a specific industry as a client base, sign up for those.

Find more suggestions of the best real estate books and best commercial real estate books reviewed by Real Estate Bees.

— Kimberly Anderson, Senior Creative Editor at Real Estate Bees

I guess CRE is not that funny because not many funny stories come to mind. Unusual yes, like water in a parking garage, sinking roofs, and lots of deferred maintenance.

But once I was wearing a color-coordinated black suit. My client was a day care center, and as we toured the property, I left screaming, crying children in my wake.

When we got back to the conference room, I asked if that was a normal reaction to a stranger. I was told, “a stranger dressed in black.”

I then realized that each of the owners of the business and the teachers were dressed in business-casual styles in pastel colors.

So, when I visited next time, I wore a light peach suit and accessories. Thus, no more screaming and crying kids as I walked from room to room.

Other hints are if you are going to climb a 18 ft single-rung ladder to climb over a roof hatch, do not wear heels or a dress.

In fact, leave the suit at home when any of what you are going to be doing might damage or stain that nice outfit.

And remember what goes up has to go down.

So, while it is easy looking up when you are riding an open construction elevator, going down might not be that pleasant.

Forty-two stories in an outside elevator with limited railings is just not my thing.

Do not rush into it. Do your research. Have that living and business cash reserve, get a good mentor and a good CRE firm with strong education and support (or residential firm if you want to go into that industry).

Also know that this business is a career, not a job. It is something that you need to go into with a mindset of success, not “well if I do not like it, I’ll quit”.

Remember that you have the interests of other people, businesses, their place to lease or a property to buy. It is not something you can decide, “I’ll just not work on it today.”

There are liabilities, and you have to put the client’s needs before you.

The agents I have seen leave or fail are those who had unrealistic expectations and assumed that this is an easy way to make a living. It is not.

But it is rewarding and frankly, there are CRE brokers out there, including myself, who have stuck through it for decades, i.e., 30, 50 years plus.

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