Finance time

Panelists at today’s “2010: The Turning Point,” the 17th annual economic forum sponsored by the Nashville chapter of Women in Commercial Real Estate, agreed on the way forward in today’s economy: it’s time to get back to basics.

Allen McDonald, a principal with Baker Storey McDonald Properties, said he was glad to see a return to deals involving things like more equity and saner underwriting. Getting by today means asking the fundamental questions.

“You have to look at the dirt,” McDonald said. “Has it stood the test of time? Will it continue to stand the test of time.”

Marty Heflin, a principal with developer M2H Group, says you must consider all potential outcomes when navigating a deal. If you can’t weather the potential worst-case scenario, don’t force the deal.

Moderator and keynote speaker Cindy Spivack, an Illinois based real estate advisor and business coach, stressed another fundamental — getting to know those you might do business with. By assessing potential clients early on, Spivack told brokers, they will save time by not getting involved with clients who will never be approved to close a deal.

Dave McGahren, a senior vice president and principal at the Nashville office of Colliers Turley Martin Tucker, said he is seeing signs that capital “is freeing up a little bit,” and has even seen activity in the commercial mortgage backed securities market. Speaking of the industrial sector, McGahren said it will be some time before transaction activity increases.

“We’re going to have to see some change in value to get the transaction flow going,” he said, adding that values need to rebound further before owners will be willing to let go of property. As industrial activity increases, McGahren said it will not be through speculative construction, which he expects to be nonexistent for three to five years.

Networking is another basic, but audience members were reminded to use today’s technological tools to do so — be it through Facebook and LinkedIn, electronic newsletters or Craigslist. Heflin said taking advantage of new media is especially important for residential developers and landlords as they seek tenants.

“You have got to have a strong electronic presence to be in the game,” he said.

Much of this electronic work can be outsourced, a theme that Spivack spent some time on.

Spivack said she employees five people, three of whom work in the Philippines (for $3 an hour, she noted several times). By delegating work, Spivack told her real estate audience they could focus on the basics of their jobs, like getting out of the office, returning all their phone calls and staying in touch with existing clients.

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