Office Location
.
Why does wind’s response come before fa09’s question???
Would we be able to find the answer to this on Jonesnet?
There goes Windy again, the man with all of the answers. And again he is wrong. You can basically pick out the exact location where you want your office to be. You do the leg work, meet the realtors, get their contact information, do the walkthroughs and when you have decided on a spot that also works for EJ they finish the build out and paperwork.You won’t work with anyone. The home office does all that. You can suggest places and maybe do walkthroughs at certain times, but they are in all the real estate stuff, you sit back and wait for a phone call. How far are you in the game fa09?
What are the limitations on office location, size, and price that EDJ will be ok with when you qualify for one and are working with a realtor?
Why not call St. Louis and ask? That’s an internal business question if I’ve ever heard one.
.
No offense Windbag, but I think your process may just be the Sooner-State way of doing things.
I found my real estate/landlord through another Jones Vet. I called ST Louis and told them where it was and what it was going to be. We also used a local contractor, not the Jones Company, (don't remember the name). But I did all the work. The myjonesoffice.com thing is accurate though. FA09, home office mentioned that they are very strict about approving new offices over 1300sq ft these days..
I would also mention EDJ will not lease from a building the FA owns until the FA is profitable.
Wind, I have to agree with Underminded. Your advice is bad, and although your advice is well-meant, you are obviously too inexperienced to know what you are talking about. You should be the one driving the process, not St. Louis and not Colliers (I guess they are the new firm doing it?).
FA09 - Jones will tell you that you don't have to do anything, BUT, DO NOT let the real estate agent or leasing coordinator dictate location, terms, etc. MAKE SURE you find a location you are happy with. Stay on top of the leasing coordinator and real estate agent, and request to review lease agreements and terms. I am telling you, they WILL F' it up if you don't stay on top of it. And you will end up with a less than desirable location than you want. I could go on endlessly about this, but I have experienced this 3 times, and I have witnessed others that have experienced this. Because of my background in real estate, I just steamrolled the process. And remember with the Leasing Coordinator, they are NOT Jones employees, and could care LESS about you or your business. The squeeky wheel will get the oil. Remember, this is the place you will run your business for at least the next 10-15 years. Don't screw it up by being passive. And ignore Wind's post about Sq. Footage. My space is 1200 sq ft, and they didn't blink an eye at it. The cost has 2 componants: buildout costs ammortized over 60 months plus monthly lease/CAM charges. If you can keep that monthly total below their "magic number" for your market, you can have 5000 sq. ft. and they won't care. So if you can find a "move-in-ready" space, they will allow a higher monthly lease cost. If you move into a "white box" that needs walls, floor, paint, hot wires, cooling/heating, ducts, etc., then that will eat into what you can afford. Problem is, I can't remember the "magic number" for my area, let alone any other area. As point of reference, my lease+CAM is about $2500/mo., plus $550/mo. ammortization. So $3050 per month. But I am in a very high-cost area in New England. One final thing...they are not looking for smaller spaces, they are looking for LARGER spaces (despite Wind's suggestion). They want spaces that have 2nd offices/conf rooms that can accomodate Goodknights/Legacy plans. Straight from a Regional Leader AND a GP that oversees GK plans. But maybe Windy knows better.....
I think they’re also flexible enough to know that it may be different looking at real estate in a town of 5000 people than a metro area with a lot of real estate options. It doesn’t suprise me that underminded’s experience is different than wind’s. Underminded - your space may have fit into the guidelines so there wasn’t any reason for you to be denied. I promise you though that if you would have come to them with some posh real estate that was really expensive they would have made you keep looking.
FWIW - wind's outline of the process was in place many years ago well before I left the comfort of the home office. At the pace Jones changes things it will be that way for the next 20 years.Rules are just rules. They are there for a reason…consistency, and to keep newbs off their backs. But one thing you learn from experience in the corporate world is that these are “rules” not “laws”. You don’t get much in life by being passive.
If you saw my office and the location, you would take my advice.....
Buck up camper!. Wind, use some of that “Star Power” you have! Don’t ask, just do. And it doesn’t matter if you don’t know real estate, just pretend you know what you are doing. You need to see the space and make sure it’s what you want. And you need to make sure they are negotiating in good faith with the landlord so that you don’t lose space over stupid details (it happens a lot). I will tell you, communication breakdowns happen. I would go and talk to the landlord directly. He doesn’t know that you’re not “technically” involved. Ask how the process is going. He’ll tell you. So if you get a different story from him than the LC and REA, then you can cry bu11sh*t. And make sure you are at the office almost daily during renovations (just stop in). I managed to get my conference room and storage room finished for free because it wasn’t part of the spec, just by making good with the contractors. What the he11 are they going to do with leftover carpet and paint?? “Oh, sure, I have a friend that’s getting his office re-done - I’ll recommend you to him…”
Tricks of the trade my friend. Don't take yourself out of the loop. Think of this as an addition to your house. How would you handle it? Remember, you are paying for the office indirectly, so you need to have some input (where do you think part of your 60% goes?).I think they have a proximity rule about location next to another Jones FA too. I may be wrong, but that has complicated a couple of the searches I’m aware of.
.
Yeah, they'll sign off on the proximity issue, but they have to call the other FA's and varify with them that they're ok with it. I'm literally 2 1/2 blocks from one Jones office, and 3 blocks from another.I think they have a proximity rule about location next to another Jones FA too. I may be wrong, but that has complicated a couple of the searches I’m aware of.
You have a whole 2 1/2 blocks between you and the next Jones guy? I’m jealous.
This wouldn’t normally be my area to post, but going through the process of purchasing an office building and having a client who is a commercial real estate appraiser, I’ll add a couple of words of wisdom…
1. Now is a GREAT time to buy. If you are at a level withing Jones that they will let you buy the real estate and lease it from them, DO IT. My friend tells me that national average right now for completed sales on commercial property is about 78% of list. I close Monday on a 1,364 square foot office building with about a 900 SF basement under the main part. List was 88,900 and I bought for 62,500. I'll put another $50K in it getting it to where I want it and based on the appraisal the bank will provide about hald of that and I'll have to come up with the rest. At $1,500-$2,000/month rent, it will easily cash flow and even allow me to take more income out of my business without paying social security/medicare taxes on it. 2. Unfortunately, appraisal values are depressed and banks are much stricter on credit. My property appraised for $110K as completed, which is about what I'll have in it. I think it will easily be worth $150K when I'm done, but that's the nature of today's market. Best financing I could get was 80%, 5-year fixed on 15-year amortization at 5.75%. Three years ago, banks would have fallen all over themselves loaning 100% of appraisal for a 795 beacon score. When things are tough, opportunities present themselves and I frankly think this is a great time to buy real estate...unfortunately, it's a sucky time for the rental real estate I'd like to sell...Ice, you crack me up sometimes.
Thanks for the responses guys. Looks like it all differs by location as to what EJ will allow. I just put my notice into my employer and will start my study for success training on the 29th so I have a ways to go to worry about an office but they say to keep it in mind and I have an ideal one in mind as motivation and I won’t be passive in taking just any office when I get to that point. BTW I met an FA the other day with an office and no BOA as he was just starting out and soon he will get one but he said only PT. Is this common at the beginning or him just being P&L savvy?
[quote=fa09]Thanks for the responses guys. Looks like it all differs by location as to what EJ will allow. I just put my notice into my employer and will start my study for success training on the 29th so I have a ways to go to worry about an office but they say to keep it in mind and I have an ideal one in mind as motivation and I won’t be passive in taking just any office when I get to that point. BTW I met an FA the other day with an office and no BOA as he was just starting out and soon he will get one but he said only PT. Is this common at the beginning or him just being P&L savvy?
[/quote]
I remember Jones giving me two locations to choose from. One was a vacant intersection; the other was a residential neighborhood!
When you’re prospecting or just driving around, look for a good location and then get involved, like the other guys recommend.
B&H is right. Get involved. St Louis has “open locations” based on # of households, # of residents over 50, investible assets, etc. They can’t identify “cross-streets” based on whether or not there is any available commercial real estate. My recommendation - find the area you want to go to, and tell them that’s the area you are going. Even if it’s not where they wanted you to go, just tell them there’s no other real estate. They’ll buy it.
.
Fire them Windy, seriously. It’s your business, dig your 6 inch heels in and tell them how it is. Tell the local broker they are either on your side or your finding someone else. DONE.
.
Will you have time for walk-ins? You may need an office somewhere off the beaten path!lol…Thats the problem. I’m not working with the broker, Colliers is (The company that does our leasing agreements). In fact I don’t even know who the broker is, or their number.I did however find a better office space than the one they want, that is on a busy intersection. The guy is whining because its quite a bit more expense but there is probably not a better storefront location in this city…especially for high traffic, visibility reasons.
.
Wind - I believe he is making a comment on the fact that you get so much business walk-ins would be a nuisance (they usually are - I had a walk-in when I was at Jones - both were on disability with no assets).l
Thank you Moraen…
Window- You would be better served to have an office that is easy to give directions to and a parking lot easy to get in and out of (low traffic volume). I never knew EJ had an office in my town until a year ago. There is over a dozen and 6 newbs looking. 99% of your business will not require someone to come to your office anyway..
It’s good to have a visible office.
'Hey Mr. Prospect, I’m over on Main Street, next to the (popular restaurant.)'
People will remember you when they see the place. And if they see the place often enough, it’s like advertising.
Parking is also extremely important for many people.
Parking is very important - I agree.
Source URL:https://www.wealthmanagement.com/forums/rookies-trainees/office-location-0