As the leader of Jacksonville commercial real estate firm Prime Realty, Tyler Saldutti has seen his company grow exponentially as the market has rebounded. In the past 18 months, Prime Realty has more than doubled its staff to meet client demand. Tyler is a fourth-generation real estate entrepreneur and, before starting Prime Realty, was a top producer working for a global commercial real estate firm. He has consulted real estate owners and users from a wide range of industries and built a reputation for finding the best real estate solutions through creative deal structures and a project approach to each assignment.
Let’s hear from Tyler as he shares tips on how his company works and how to leverage the brokerage Community to scale your real estate business.
[00:00 - 07:00] Prime Realty: We Do Low Volume, High Quality
- Tyler Saldutti is the founder of prime Realty, a commercial real estate firm in Jacksonville, Florida.
- Prime Realty is the leading or premier boutique brokerage doing over 250 transactions.
- Tyler started in New Jersey working construction and then moved to South Florida, where he worked as a consultant and learned to develop his two passions
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- helping people build wealth through real estate investment
- and supporting entrepreneurs.
- In 2008, when the economy was tough, Prime Realty reinvented itself as a boutique operation that services family offices and small businesses.
[07:01 - 13:51] Boutique Real Estate Firm Uses Exclusive Relationships and Nimble Marketing to Close More Projects
- Tyler adds that a high-quantity low-quality business model can’t be nimble and custom when it’s big.
- How a boutique approach is different, and how it results in better quality work for the agent and higher closing rates.
- Tyler recommends that agents work hard to build relationships with brokers and not get sucked into a crony system.
- Agents should also stay in touch with their brokers to ensure they are always on top of new opportunities.
[13:52 - 20:46] Real Estate Broker Sourced and Assisted with Every Acquisition
- There is a real estate broker that has been helpful in all of the acquisitions that the speaker has made, and he recommends staying in touch with the brokerage community to stay up-to-date on opportunities.
- The role of a broker is different than that of other professionals involved in a real estate transaction, and their goal is to maximize their sale price and return on investment.
- It is important to verify information about a property before making an offer, as there can be significant differences in how different buyers view it.
- A good business plan for a real estate project should include
[20:47 - 24:50] Closing Segment
- Reach out to Tyler
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- Links Below
- Final Words
Tweetable Quotes
“Finding those exclusive relationships, meaning you may invest in property all over the country, but you may have somebody in Chicago that knows the industrial market there and You're dealing with them whenever you're in Chicago and dealing with the industrial market, that's going to be the only person you're going to work with.” - Tyler Saldutti
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Connect with Tyler visit their website at https://primerealtyinc.com/
Or call 9043730578
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Want to read the full show notes of the episode? Check it out below:
[00:00:38] Sam Wilson: Tyler Saldutti is the founder of Prime Realty in Jacksonville, Florida, where he is overseeing the funding acquisition development management and leasing of over 2000 retail office, industrial multifamily properties throughout Florida and Georgia.
[00:00:52] Tyler Saldutti: Tyler. Welcome to the show. Thanks for
[00:00:54] Sam Wilson: having me. Hey man, the pleasure's mine and 90 seconds or less. Can you tell me, where did you start? Where are you now? And how did you get there?
[00:01:00] Tyler Saldutti: I started in New Jersey working construction, growing up, my father and uncles. And that was how I saw real estate. It was the physical production of space and there's something that's just very rewarding about seeing the.
[00:01:16] Tyler Saldutti: The result of your labor growing up outside Manhattan. So many industries are dollars and cents. And something about seeing your end product got my blood in 2008, I started Prime Realty. We're a commercial real estate firm here in Jacksonville, Florida. And now we're the leading or premier boutique brokerage doing over 250 transactions.
[00:01:37] Tyler Saldutti: Like you were.
[00:01:37] Sam Wilson: That is really cool. I love that. So when you were in the construction business, were you guys general contractors? Were you guys the owners developing the project? What
[00:01:48] Tyler Saldutti: was your role in that? Well, you may have picked up from the last name, style duty. I'm a Italian American from Jersey.
[00:01:54] Tyler Saldutti: So you. Know, I had family members in all sorts of trades. Electricians, like I said, my father is a general contractor. I member working for an uncle that was a site works contractor. So, it was, exercise of getting to see a little bit of everything. Like I said, mostly from the.
[00:02:12] Tyler Saldutti: Property improvement or construction side spending weekends winter breaks off of sports. Mostly it was in the summers working in the different trades. So, this way, as my career progressed, I have this vision and understanding of what's behind all the numbers and spreadsheets and what it takes to construct and develop and manage.
[00:02:35] Tyler Saldutti: Manage office, industrial retail and multifamily property. So you see all the different colored logos. We have that. That's what that's all about. Those are our four main food groups and how we divide and conquer and commercial real estate.
[00:02:50] Sam Wilson: How did you make the jump from working in the trades?
[00:02:53] Sam Wilson: Working as a GC to, I know I should go start a brokerage. That kind of seems a little disconnected
[00:02:59] Tyler Saldutti: there. Sure. After growing up in New Jersey, I traded commodities in south Florida, a very business development, intense environment. You might picture a large bullpen of financial advisors making.
[00:03:18] Tyler Saldutti: Business calls and developing new relationships in the dozens of conversations today, sometimes hundreds from there, I worked for a small business consulting firm in London and really developed, my two passions are helping people build wealth through real estate investment and supporting entrepreneurs.
[00:03:40] Tyler Saldutti: And. Working for mostly medium size companies in London and consulting, a lot of it was geared towards their marketing systems and operations. You developed an appreciation for that small and medium sized business owner that as you help them get results kind of back to you can, there's a transparency and, a visual when you help a business that.
[00:04:06] Tyler Saldutti: Versus maybe a, the, when we consult bigger firms and bigger organizations maybe it's not as clear there. So all of that to say that the boutique operation, that services a lot of family offices or family groups, small businesses is where I've found my life and my passion and it's been a good fit ever since.
[00:04:31] Sam Wilson: So let's talk about your brokerage then. So you launch a brokerage in Florida, you say, Hey, we're gonna do commercial brokerage in 2008. The timing seems a little rough. Tell me tell me how you guys made your way through that period. And kind of what, I guess, what lessons
[00:04:48] Tyler Saldutti: you learned along the way?
[00:04:49] Tyler Saldutti: Well, 2008 was the great recession and it was very there was a lot of Turmo. And the economy at that time, I was working for the largest commercial real estate brokerage in the world doing investment sales, which meant I got to touch multiple different property types. And, you, I saw, I had to reinvent myself into more leasing and management in addition to the investment sales.
[00:05:17] Tyler Saldutti: And it's what people needed at the time they needed. Their building's full so that they could cover their debt service. They needed property management that was finding ways to be more efficient and save money. And again, coming back into that from having a very deep understanding of the investment side, the ownership side, balancing that with the leasing and the management There was we did, I didn't complete a sale transaction for over a year after starting Prime.
[00:05:52] Tyler Saldutti: So, we saw that there was a need for a boutique approach. We saw that. The quantity over quality of work model was not gonna work. In other words, 2007, you could put a sign in front of a property. Somebody's gonna call you. You're gonna get a transaction done. Let me tell you, in 2008 times were tough and you built a lot of good habits.
[00:06:14] Tyler Saldutti: And this firm was built on those habits. So when things are let's say more normal we're really, hitting on all cylinders because we've been built with a very proactive and project oriented approach that truly is effective in the most difficult of times. Which. Which it, which was a very difficult process to do.
[00:06:37] Tyler Saldutti: Right. But boy hasn't served us well ever since. So
[00:06:41] Sam Wilson: I'm really curious when you say the need for a boutique approach and the other phrase you said there was, you built a lot of good habits. What are the things that come to mind when you say that? Because obviously not being a broker on this side, I don't, can you paint a picture there for us that you said, Hey, here's the problem I saw?
[00:06:58] Sam Wilson: And this is kind of how we decided we're gonna do
[00:07:00] Tyler Saldutti: it differently. Sure. So we turned the quantity over quality equation on its head, if you're at a big firm, you're gonna have different overhead, you're gonna have a corporate office that you're feeding constantly. And your business model is built to make that corporation money.
[00:07:20] Tyler Saldutti: And it's very successful and you might need to have three dozen listings in order to, effectively close half of those transactions. And it works for the broker, right? And the broker makes money and the agent makes money. But it's high volume. Low quality, you're fitting everything into a system that has to be somewhat effective for a variety of different projects.
[00:07:49] Tyler Saldutti: Right? You can't be nimble when you're big. You can't be custom when you're big. And the boutique approach is the opposite. So, we've got our systems, we test and measure. We've got all the same technology, all the same marketing platforms. All the gizmos that the big firms have, technology's been a great equalizer amongst all firms, but we do low volume, high quality.
[00:08:13] Tyler Saldutti: So project approached with the unique business plan for each project. The critical non-essentials whether we're working with a buyer or a seller, a tenant or a landlord, we. Get to have a curiosity and get to know their business more so than you can if you're in a high volume business. So, it's the customization you can do.
[00:08:37] Tyler Saldutti: It's the expertise you can develop and then it's just being proactive. So if we're on the marketing side, we, if we're working on maybe 20 deals instead, 40, it's not rocket science. It's picking up the phone. If you're trying to find a space where a dental practice, you're calling all the dentists in town, and you can do that on a boutique approach and be more pro project oriented.
[00:09:00] Tyler Saldutti: We close, darn near a hundred percent of the projects we take on. And at a bigger high quantity firm you're doing between 30 and 50% closing. And that's a lifestyle. 50 to 70% of your clients being frustrated with, Hey, how come I don't hear from, Hey, what's going on? I don't see what you're doing.
[00:09:20] Tyler Saldutti: And when you have lower quantities, you're able to do that kinda work. Got it. It's more enjoyable.
[00:09:26] Sam Wilson: No, that, that makes a lot of sense. Thank you for taking the time to, to clarify that, cuz that again, not being in your business, I go that, just needed some more deeper understanding of that.
[00:09:37] Sam Wilson: So that's really cool. Thank you for sharing that with us. Tell me about this. The broker and call, let's say the broker and buyer and broker and seller relationships are they're unique and have their own, nuances to 'em. What are some things or some tips that you would give that you would say, Hey, here's the way that you should be effectively leveraging your broker relationships?
[00:09:57] Tyler Saldutti: Well, there's three things that I think. Investor or just real estate entrepreneur should keep in mind when trying to leverage the brokerage community to help them build their business. And the first is to really work hard, to build those relationships in an exclusive manner. And it's always important to date before you get married.
[00:10:25] Tyler Saldutti: As you're trying to engage a brokerage community, you can work with somebody quite a bit before. You're really like I said committing to them in any sense, but a commitment. It should be the end goal on both sides. The brokerage community is an E what you kill industry. They were not able to pay our bills, support our families.
[00:10:50] Tyler Saldutti: Unless we get results. And so we have to be very disciplined at what we commit our time to. And we, as you can imagine in a market like today in 2022, there's a lot of buyers, right? So how do you as the buyer distinguish yourself and try to build that exclusive relationship, it goes both ways. We're the, broker's looking for an exclusive relat.
[00:11:18] Tyler Saldutti: And the buyer wants to be the first one to get the call when a new, exciting opportunity becomes available. So, I don't think anybody ever expects a exclusive relationship. That's not logical, meaning, you're not gonna have one phone conversation with someone and say, gosh, you're the only broker I'm ever going to use on every deal I ever do.
[00:11:39] Tyler Saldutti: But finding those exclusive relationships, meaning you may have somebody. And you may invest in property all over the country, but you may have somebody in Chicago that knows the industrial market there that you through. You're dealing with them whenever you're in Chicago and industrial market, that's gonna be the only person you're going to work with and so on and so forth.
[00:12:05] Tyler Saldutti: So, that's the first. Main goal I'd say for any investor owner, entrepreneur is to try to build these exclusive relationships and they can be one, it can be one person, one that does and quarterbacks all your deals, but it can also be a, a group that you formed together.
[00:12:23] Tyler Saldutti: The second thing is. I'd say don't get sucked into a crony system. So again, having been in corporate commercial real estate world, there is a crony system in a national platform that, a customer that works with X, Y, Z company. And that company has offices all over the country. You don't want to be dealing with somebody that just has the same logo on their business card because Hey everybody, you know what a nice logo, right?
[00:12:56] Tyler Saldutti: If you're going into multiple markets and the way that we approach it, and most independent firms approach it you're able to be nimble and partner with the right brokers or agents in that market. In other words, no firm has the. Agent or broker in every single submarket in every single property type in every single market.
[00:13:17] Tyler Saldutti: So you may find when you're in Boise that the CBR E broker on the west side of town for multifamily is the best and that's their niche. And you might find. It's the cushioning Wakefield broker. And you might find it's another independent firm. So I would say don't get sucked into a crony system that doesn't serve you and your goals don't align with you and your broker that way.
[00:13:43] Tyler Saldutti: And the third I would just say is follow up and stay in touch. Like any good relationship. I can't tell you. I've been blessed to build a small real estate portfolio. There has been a real estate broker that has sourced and assisted with every acquisition I've made. And I can't tell you how many opportunities come from staying in touch with the brokerage community and the experts and the specialists.
[00:14:06] Tyler Saldutti: And and they're given property types and marketplaces. And submarkets whether that's a phone call a few times a year with a lunch, And, I make a point to, to go to that lunch once a year, make a point to play around at golf or whatever it is. That you enjoy with that person and hopefully the broker's doing the same, but but if you are disciplined and scheduled about it, you'd be amazed by how much those once a quarter, once a month, touching base calls will lead to, to really profitable acquisitions.
[00:14:38] Sam Wilson: I love that. Thank you for taking the time to break down those three really valuable points there. I wanna circle back to the first one. However, when you said to build relationships that are exclusive, my question is this, how do you know when a broker is someone who is worth building that exclusive relationship with
[00:14:57] Tyler Saldutti: they've made you, they've made you a lot of money, a broker.
[00:15:01] Tyler Saldutti: Should be your most valuable tool in your toolbox? I've often been said throughout the years that the brokerage community is the grease that keeps the gears of the economy going, a broker's role, the way they're compensated and the value they add is different than everybody else in that transaction, whether it's the seller.
[00:15:27] Tyler Saldutti: And their goal to maximize their sale price, the buyer, their goal, to limit the maybe limit the purchase price and achieve the highest returns or limit municipality. That's gotta help you with the zoning or the contractor. That's gotta do the property improvement. So the attorney that's gotta assess the risk.
[00:15:46] Tyler Saldutti: Everybody has their role but even that entrepreneur that's importance is finding the value maximizing return and being creative. They are not playing the role and motivated to keep the transactions moving forward. Right. And bringing people together and finding ways the broker has got to achieve everybody's goal right.
[00:16:13] Tyler Saldutti: In order for there to be a successful transaction. And so, how do you know when you've found that? Well, you've made a lot of money. That's truly it. I mean, the foundation of any broker relationship is, made, saved. Or achieved a great return on investment and at Prime Realty, we work with both sides.
[00:16:34] Tyler Saldutti: So, making a lot of money on the buy side is obviously different than making a lot of money on the sell side. But you're looking for someone that's got that deep, specific niche specialization. You're looking for someone that's collaborative, right? That's not trying to force you into their, oh, don't worry.
[00:16:54] Tyler Saldutti: I know all the buyers in the market, we're just gonna, market this off market. Don't worry about it. And so you're looking for somebody that. Goals or aligning with yours or being collaborative. They've got that specialty and they've proven to you that they're they're able to make you a lot of money.
[00:17:10] Sam Wilson: I love that answer. That's great. I've got one final question here for you and this'll come off as harsh or as snarky. So I apologize in advance, but I guess we don't ever look at the broker brokers. PROFOR. Like they're all packaged up. They're put across and they're part of the shiny brochure. And the first thing we do is totally ignore 'em.
[00:17:30] Sam Wilson: Why is that? Why is that the case? Well,
[00:17:34] Tyler Saldutti: Gosh, I know those brokers that you're talking about, and I know those packets you're talking about and I'm fighting a good fight here at Prime. For that, not to be the case. But I also believe everyone's doing the right thing in starting from scratch.
[00:17:55] Tyler Saldutti: Right? So you take your, you take your secondary sources of information, but you verify and I would say. If I look at a property with three different buyers, there's going to be three different ways that they look at that. So it makes sense that everybody starts from a blank spreadsheet, ideally, truly a blank spreadsheet and takes everything I've been saying about a project approach and customization, and does that for each property.
[00:18:30] Tyler Saldutti: So I, I think the idea that. Any marketing offering memorandum or any one spreadsheet is gonna be adequate in deciphering what an individual or an organization's unique business plan is for that property. That doesn't make sense. And, I don't think you understand our industry. if that. The way you approach it.
[00:18:59] Tyler Saldutti: Well, well, here's my spreadsheet. It's a template and I, and I put this and this is how we, doing that is just as wrong as like you're saying, trying to take the offering memorandum and say, well, this is how this is this, if that's how that property was gonna perform.
[00:19:13] Tyler Saldutti: The only thing anyone can tell you about their offering memorandum is the property will perform. Not to what I have in my offering. thatAnd right. This is a an estimated summary of what you might expect with the business plan that we've come up with. Right. and so I think it's more important to be able, like we touched on before, understand what's behind those numbers as you help your buyers.
[00:19:41] Tyler Saldutti: evaluate an opportunity that nobody's spreadsheet can tell you what their unique resources are to add value. And then what their ability to access capital. So, nobody nobody's putting out offering memorandums. They might have some consumable debt assumptions, but. One of the, two criteria that nobody can do is what are your unique resources to add value, and what's your ability to acquire funding for it.
[00:20:12] Tyler Saldutti: So what, you're, what you're able to source interest rate amortization fix time period, versus what I'm able to source. Is different and it's always gonna be difference between investor a, B, C, and D. So, I think everybody's doing the right thing by taking the summary analysis from the offering memorandums and then getting rolling their sleeves up and, and doing the work on their end to build the B the successful business plan that, that a good investment should include.
[00:20:41] Sam Wilson: Tyler. Thank you so much for coming on the show today. I certainly appreciate it learned an absolute ton from you. If our listeners wanna get in touch with you or learn more about you, what is the best way to do that? Our
[00:20:51] Tyler Saldutti: website is PrimeRealtyInc.com Like incorporated.com and you can reach us there.
[00:20:57] Tyler Saldutti: We're easy to find here in Jacksonville, Florida Prime Realty, Inc. 9 0 4 3 7 3 0 5 7 8. And that's my direct. Awesome. Tyler. Thank you
[00:21:08] Sam Wilson: again. Certainly appreciate it.
