Real Estate Consultants: A New Idea?

Real estate agents get a bad rap sometimes.  Public perception is that agents broker transactions, but don't really delve into the client's needs and motivation any more than is necessary to close the deal.  But is that an accurate assessment regarding real estate consultants?  Consultants don't act like traditional agents; they work on a fee for service basis, and are concerned more with successfully achieving the client's needs, rather than being focused on any one singular transaction.  In challenging fiscal environments, such as the one we're in now, employing a real estate consultant to navigate the market seems to be the best idea yet.

 People get in and out of real estate assets all the time, for varying reasons.  Maybe they're moving up, downsizing, avoiding foreclosure, or just investing in cash flow tangible assets.  Perhaps they're just starting a new business and need some professional, in-depth insight as to the best location.  Or maybe a business needs to expand, and existing or proposed zoning and land use constraints may be an issue.  Or it may just be one seeks to speculate in the real estate market, but wants the help of a real estate professional to get some of that "inside baseball" knowledge, but who will then step back let the investor handle the rest of the transaction.

In these cases and countless others, utilizing the services of a real estate consultant is the perfect solution, because consultants provide those services you need and want, and when you need and want them.  OK, so how does one go about picking a consultant?

1.  Find a short list of consultants with expertise in your particular needs.  Web search real estate consultants in your area, or ask friends and colleagues.  Real estate consultants should be licensed professional real estate practitioners; avoid any who are not.

2.  Interview, Interview, Interview.  Expect that your real estate consultant will be an integral member of your team, so treat that selection with the same care as you would in picking a lawyer.  You must have a sense of ease with him, and you must pick a consultant in whom you trust to do the job in the best way for you.  Rather than grill him, chat with him and determine a level of comfort and competence.

3.  The importance of experience cannot be understated.  How long have they been consulting, as opposed to how long they been brokering?   Ask this, because their answer may be enlightening.  Brokers make deals, that's true, but a good consultant will work with your own attorneys, accountants and partners to ensure that your project is successful, and glitch free.

4.  The importance of connections is noteworthy, as well.  Is your consultant candidate well known in your project's community?  Does he do business with attorneys, accountants, and others who may have an impact on your project?

5.  Is your consultant candidate a member of any organization that serves the consulting community?  A candidate's membership in groups such as C-CREC, ACRE, and others is a determination of who's who in the consulting universe.

6.  Determine the legalities of a working relationship.  Ask to see his employment contract and ask about his fee schedule. Discuss these terms extensively.

So, go ahead and make the leap into real estate.  Real estate assets make an excellent store of wealth, as they tend to appreciate in value over time, and they also can produce cash flows in certain cases.  But don't go in blind, let the experience of a real estate consultant guide you along the way.  The money you spend for this service will pay off in greater rewards for you as the project develops.