Building Business and Relationships: Cameron Hooper’s Strategies for CRE Success

#1 – Why did you choose commercial real estate as your career, and what made you pick multifamily as your specialty?

Being a stock broker for a number of years and building up a successful business, I always had the desire to own/start something, and real estate gave me that. I worked for a large local developer for 3 years as their Director of Finance and learned a lot about the business. When I saw the timing was right, I decided to merge my stock broker mentality with my experience in real estate and started an office in Jacksonville. Multifamily has a long economic runway, but it also has a socioeconomic runway, as more people are becoming renters by choice. I believe we are at the beginning of a long-term bull market for the next 30+ years in multifamily.

#2 – What was the turning point in your career? What experiences, setbacks, or challenges have been the most instrumental to your growth?

A career-ending injury in my ribs kept me from playing professional golf. Instead of becoming an insurance agent like every other golfer I knew, I wanted to work on Wall Street. About three years in, I had the “Ahahh moment.” Relationships over Revenue! Relationships are the truest value in business, and relationships take time and experience to build trust. The microwave mentality is the wrong approach in business – it’s best to be the slow cooker!

#3 – Can you talk about multifamily performance in Florida specifically?

Multifamily in Florida has a lot going for it. 300K+ people are moving to the state each year, and that won’t stop overnight. Couple that with younger renters who historically would have been buying homes and the rise in seniors utilizing multifamily – you’ve got a recipe for strong performance.

#4 – What inspired you to transition from being an athlete to working in CRE?

I never wanted to sell a product; I wanted to sell a service and have that service be tied directly to me (so that I could bring value and not have to rely on others or a product). The best part of this job is that you get what you put in, which is directly the same as athletics – if you practice hard and the right way, you will see success.

#5 – Can you share with us any specific skills or qualities that you believe are transferable from your athletic career to being successful in CRE?

Delayed gratification and the understanding of it. Skills and results don’t come overnight; they take work. But once you acquire them, it’s hard to lose those skills, and then you strive to constantly keep improving and building on the skills you’ve created and the relationships you’ve developed.

#6 – In your opinion, what are the key factors that differentiate a successful agent from others in the industry?

I believe too many brokers look at the business transactionally. The biggest key factor is you have to be long-term focused in a business that demands/desires quick results.

#7 – How are you advising multifamily owners in the current economic environment?

Markets go up, and markets go down. The current economic environment is just that; it’s an environment. I work as a trusted resource for my clients, and because of my large exposure to deals/market share, I can show clients the true market. Our business is one that you can’t just google the ticker symbol of your property and get a value in a millisecond. There is a process to understanding what a property is worth, which takes commitment and time. My job is to understand the end goals of my clients and then advise them accordingly on their assets in alignment with their business/personal/end goals.

#8 – What future trends are you seeing for multifamily?

The American Dream has shifted from owning property to having the ability to move.  I see strong growth in multifamily assets due to that shift. We are seeing multifamily take on more characteristics of the benefits of home ownership (i.e.-horizontal multifamily or build-to-rent products). The BTR product is one that I’m ultra bullish on as it offers design features such as fenced-in back patios/yards, more livable space, and detached products in some cases so that you aren’t hearing your neighbor. In traditional multifamily, I’m seeing more amenities being added to cater to new consumer expectations. Some of these amenities include resort-style pools, fitness centers, dog parks, garages, entertainment centers, private work areas, and outdoor social areas.

#9 – What are your expectations for multifamily performance for the next 12 months?

In Florida, we are currently witnessing a return to average market conditions, causing temporary concern. Multifamily owners and developers are facing increased expenses across the board, including carrying costs, supplies, construction, insurance, and labor. These factors are significantly impacting the Net Operating Income (NOI). This unfortunate combination of lower NOI and expanding cap rates is detrimental to the value of assets, posing a double blow to owners. I anticipate further challenges ahead as I believe interest rates will remain elevated longer than the market anticipates, seeing some relief in mid-2024. I remain bullish that the multifamily market will experience a robust climb in the Summer/Fall of 2024, similar to the rebound observed after the COVID-19 pandemic, which largely stems from the FOMO (Fear of Missing Out) mentality from developers and owners.

#10 – Are there any strategies you can share with the audience on business development, and how did you build successful relationships in the industry?

As a broker, you can be perceived in two ways: either as an obstruction between a buyer and seller or as a valuable facilitator for both parties. I completely reshape this perspective by adopting a mentality that transcends the traditional role of a broker. To me, being a broker means being an integral part of a person’s business. The key to success in securing deals lies in the substantial value you bring to the relationships cultivated. This is achieved through building strong “Centers of Influence,” which involves developing connections with individuals who may indirectly impact my deals. I actively engage in pricing exercises with GCs, meet with bankers to understand their credit desk insights, and even have conversations over lunch with CRE insurance agents to address my clients’ challenges with high insurance costs. By focusing on nurturing these relationships, I can offer more than just transactional support. I firmly believe that in the next 30 years, CRE brokerage will resemble the stock market, where brokers are no longer essential. The brokers who will remain relevant are the ones who bring value beyond the mere documentation of transactions.