Posted: December 21, 2016 by Paul Cohen, Regional Director
HOW LONG SHOULD IT TAKE TO RECEIVE AN OFFERING MEMORANDUM?
Back in 2002, I was at a conference for a select group of CBRE brokers who were invited to be part of a new division called the Private Client Group. It was an exciting time. Led by a maverick named Glen Esnard, we had one mandate: to design and build a platform within the CBRE network to work with the thousands of private real estate owners across the country. Previously, the company had a more institutional focus, but now recognized the opportunity to service a wider entrepreneurial client-base.
One of our first breakout sessions was led by a forward thinker named Jim Crupi; a consultant to many Fortune 500 companies and a former Army Ranger commander. I was pumped. His first question to us was: “how long should it take to get an offering memorandum?”. I looked around the room, thought about how long it typically took; figured he was looking for a short answer and suggested one I thought was low but not crazy: “less than 24 hours.” Many of my colleagues could tell by his reaction that he was looking for a shorter time and offered their newly revised responses with the lowest being “one hour.” Of course, an hour was doable but in my experience, was not the norm. By the time a buyer gets a broker on the phone, the broker e-mails an NDA, the NDA is received, printed, executed, and then faxed (yes faxed) back, the executed NDA is then received by the broker and finally the offering memorandum is sent, at least a day if not several has usually elapsed. Crupi then challenged us to a group exercise. Our task was to pass a tennis ball around a circle of 20 people in the shortest time possible. Now we were a very competitive bunch so after three attempts we got it down to under 5 seconds. Crupi commended us but encouraged us to do it quicker. After some brainstorming, strong teamwork, and logistical coordination we finally touched the ball simultaneously. That was Crupi’s point: “Don’t accept the norm but challenge yourself to find new ways to do it better.” He invited us to do the same with Offering Memorandums. My mind was blown. What if we improve on and change the norm in other areas of the business?
Fast forward to 2016, I find myself with the same level of excitement as I did in the early days of the PCG: a member of a band of free thinkers with the goal of disrupting traditional norms. Providing tools to brokers to make them more effective with client reporting, email marketing, due diligence vaults, offer submission, and analytics. Oh, and you can download an OM instantaneously. Check out www.crexi.com and take the OM Challenge.
Paul Cohen – Guest Contributor
Paul Cohen is a Regional Director with CREXi based in the firm’s Miami office and focused on business development in the southeast. Prior to joining CREXi, Cohen was a Managing Director specializing in investment sales and equity raises at Cohen Financial, a national debt and equity advisor. Prior to Cohen Financial, Paul owned and operated his own independent real estate firm following a 12-year tenure at CBRE where Cohen was a Senior Vice President and led the Private Client Group in Miami-Dade County with a specialty in office and industrial investment sales.