300 Months

I was about to turn 28 years old and I was in a hurry to get home. I jumped in my car and pointed north towards our small town. I had to tell my Karen the good news.

After talking to 13 different commercial real estate firms over a series of months, I’d gotten an offer from the only one I REALLY wanted to join: Cushman & Wakefield. I was elated and bursting with pride.

Karen and I had dinner in our very small house in a suburb of Atlanta. She didn’t know my news, but I was positively giddy, so she knew something was up.

Over spaghetti and meatballs, I told her all about it. In great detail. Cushman & Wakefield was going to be our big break. I was going to slay dragons and we were going to make it big.

There was one issue, though: I was to work 100% at risk in a commission only environment. There was no limit to my upside, but my earnings downside was…zero.

Even though they offered, I never wanted a “draw” (a loan, essentially) and I was prepared for the risk. We had no kids and Karen had a good job at EY. In those days, there was no real training program at C&W, but I had a degree in sales and sales management. However, any way you sliced it, the risk was extraordinary.

Suddenly, as I was slurping noodles, Karen held up her hands. After 30 minutes of me talking she had heard enough and she had something to say. I thought she was going to talk about the social plans for the weekend.

Her mouth was tight, but her eyes sparkled and she looked right into my eyes. She finally spit is out…“I’m pregnant!” I was happy and terrified in the same moment. “Uh, that’s great!” I said with true enthusiasm but I felt a pang in the pit of my stomach.

 I knew I had nine months to make it. Or not. In the business of commercial real estate.

 The In Between

After the Great Revelation of Karen’s pregnancy, I called a number of friends to ask for help with side jobs. I started valeting cars the very next weekend, working till 2 AM on Friday and 4 AM on Saturday. I managed property on the side for a few owners. I joined the local fire department, and after training, worked shifts part time for pay. I would basically do anything legal to build up our cash reserves. Babies are expensive, afterall.

Meanwhile at work, things weren’t going so well. I was cold calling my brains out in a gritty industrial area of Atlanta, but I couldn’t hit a lick. I had been selling things since I was in second grade, and I was good at it. But it is immensely hard to talk to a decision maker and build trust when you are so young and still learning about your chosen field. I can clearly remember the dual fear of not making any meetings but also the concern of what to say if a decision maker picked up the phone.

I’ve never been so depressed in my life. The rejection was omnipresent, and I couldn’t sleep at night. Every morning, I stared at myself in the mirror and wondered what the hell I’d gotten myself into. And I thought about my wife and unborn baby and the requirement that I perform to take care of them. The responsibility and pressure to succeed was overwhelming.

I Quit

After eight and half months without a penny of income, I had had enough. I was going to quit.

It was Friday and I marched into my manager Mike Elting’s office. I told him all my troubles and he listened carefully. At the end of my speech he took office his glasses and paused. He looked directly at me and quietly said, “Bring me your deal sheet.”

I ran to my cube and grabbed the document. I handed it to him, panting. Mike looked at it and finally looked up at me. ”Hmmmm, he said, you have some potential here.”

Then he asked me a strange question. “Ken, do you know what sunk cost is?” I stammered,  ”Sure, we studied that in Econ, but what does that have to do with this situation?”

“You’ve spent nearly nine months of your life here making no income. How long would it take you to make this back in a regular salary job and what would your salary be?”

I took a guess and we did the math together. It would take four-and-a-half years to make back the past eight-and-a-half months of “at risk” comp IF I could get other employment - immediately.

Mike gently said, “Why don’t you stay around a little longer and see if you can be successful?”

Surprise!

I thought about my conversation with Mike for a long time. i sat in my car in the garage and debated the issue in my head. I didn’t realize it at the time, but this was literally a life changing decision either way. Finally, I cranked up my car and headed home.

The next morning after a very restless night of sleep, I had made a decision. I took Mike’s advice for two reasons. One, his confidence in me meant everything. I can’t tell you how important a few supporting words from a senior person are in the life of a young broker. Mike is a great listener and a leader that just makes you feel good when you are around him.

Second, I played out a conversation in my head. I’d have to tell my father that I had quit and that I was a failure. I simply couldn’t bring myself to do so no matter the risk to my income. My dad’s opinion of me was paramount. I would park even more cars and find more jobs. That morning, I looked at myself in the mirror with a new resolve. I AM GOING TO MAKE IT I said out loud. I hit the road to the office with a new resolve and a commitment like I’ve never felt before in my life.

About two weeks later I got a call I hadn’t been expecting: a deal was moving ahead! I felt like parading around the office and I wanted to cheer as if the Georgia Bulldogs had scored a touchdown. Instead, I shouted under my breath and pumped my fist in the air. The day the deal made is still one of the better days of my life.

Karen was elated too. She wanted her man to make it, and I could see the relief in her eyes as I experienced my very first success in commercial real estate. I had my confidence back!

Karen and I talked about the money from the surprise deal. We had lots of needs but one was more important than all others. I took some of the commission dollars from my first deal and went to an estate sale the next weekend.

We used the money to buy the four-poster bed we sleep in to this very day. Real estate at first caused me to sleep poorly, but in the wink of an eye, I was sleeping like a baby!

300 Months Later

Well, I’ve been at Cushman & Wakefield for 25 years this month - 300 months. Our dreams DID come true; I’ve been blessed with great clients and teammates. We’ve done OK, Karen and I. We ended up having four great kids and still love each other very much. Our oldest son Jonathan got engaged to be married recently, which of course we are thrilled about. Yes, the same child that Karen mentioned in our “real estate spaghetti” dinner.

And I still feel that desire to continue to succeed, but it's much more about winning to support my team and those around me. The bottom line is I wake up unemployed every morning and it’s up to me to do the right things on the path to winning and executing for our clients.

In the evening, as I make my way to bed and look at the beautiful four posts we bought with my first commission dollars, I think about the impact we all can have on others in ways we may not realize. Mike Elting will always be a hero to me. His clutch advice and quiet confidence in me saved my real estate career. But there are many others that helped me along the way and for that I am so grateful.

Now it is my turn to help others. I frequently take calls with young people who are trying to get started or are new in the business. Reaching back down the ladder is a sacred obligation.

And to clear the record, the modern-day training and support at Cushman & Wakefield is industry leading. I take great pride in my company’s top position in our industry regarding the careers of young people. I know our young brokers absolutely know what to say when the decision maker takes their call.

Oh, and one more thing. Marrying well is so critical for life success. I love my wife with all my heart and her support thousands of times in our marriage has made all the difference. Growing old(er) together has been one of the greatest things to happen to me.

It’s been a great run and I look forward to many more years of real estate, gray hair, and all. And I now fully understand in Technicolor the concept of sunk cost; thanks Mike!

But I also now know the return on investment for a calculated risk + hardwork + a strong dose of mentorship. That equals 25 wonderful years at C&W, an amazing family and a pretty terrific bed.