Are you wanting to get into the real estate game but don't know any of the lingo? Parse through this plethora of lessons where you will learn the meaning and specific application of dozens of real estate terms taught by the incredibly successful Michael Burer.
Featured Coaching Excerpt - Notes & Transcript, Part 1
Close: Third stage of four-stage transaction management process pertaining to bringing the parties together and consummating an agreement. The acronym CLOSE represents the contingencies, legal instruments, obstacles, signatures, and execution involved in the close stage.
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-All right, I'm Clay Clark and we're here with Michael "there is no real estate topic too obscure" Burer, talking about a topic that I know you're interested in here on Thrive15.com, an alternative to lynda.com -- close. Clothes, you say? Like clothes you wear? No, no, like real estate close, like closing a deal maybe.
Mike, I'm going to read you the definition. And I'd like to see if you could provide an ample example that my mind can handle. Here we go.
Close-- the third stage of four-stage transaction management process pertaining to the bringing the parties together and consummating an agreement. The acronym CLOSE represents the contingencies, legal instruments, obstacles, signatures, and execution involved in the close stage. Layman's terms-- what's a close?
-You said it. It's just the end of the transaction, when it's all over, when the deal's over. You're the proud owner, or you just sold an asset. You've closed on the deal.
-In the real estate world, do people get excited when you close the deal? I mean, is that a big deal?
-You want to ring the bell when you close.
-Do you remember the first time you closed a big deal?
-Without going into too much of the specifics of the actual property, but I mean, how big was the property, was your first, in your mind, big deal?
-It wasn't that big, but it was a great investment to see it all the way through and pretty exciting process to finally have that big close.
-I think a lot of entrepreneurs, we're impatient. We're highly motivated, we're impatient. We're highly motivated, we're impatient. How long does it take usually in a commercial deal-- if you're doing a deal that's a $10 or $20 million deal-- how long does it take from the time that someone goes, I think I might want to buy that, to the time it actually happens, usually?
-It can be a long process, sometimes four to six months even.
-Wow. And that's just typical. Four to six months.
-Depending on the deal. I mean it could be faster, two to three.
-You ever seen a deal take a year?
-Sure, deals that go on and off. Yeah.
-So how do you handle the fact that you have all these deals going on, and at any point, one might close. I mean, you just kind of push each one forward a little bit every day?
-Yeah, you got to determine where you are going to spend your time and which one has the greatest prospects of success, and dig in on that one.
-But your firm, with billion dollars of properties, you probably are always on the verge of closing something. Or you're always working multiple deals, right?
-Absolutely, we try to be.
-OK. Well, Michael, I appreciate you for being here. And I just wanted to tell you, did you see that? That was my appreciation flying all around.