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"Jim Young Interview 1999"


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6/4/99 Interview with Jim Young

Realcomm
3951 Park Drive
Carlsbad, CA 92008
Biography

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The Jameson Group

  1. When Young started in Real Estate in 1989, he was amazed at the lack of technology in the Commercial Real Estate field and began to apply what he had learned from automating top law firms.
  2. During the Real Estate market downturn, the company he worked for did record-breaking business because their systems anticipated trends.
  3. Application of technological concepts to the Real Estate industry was a logical progression.
Scientific Look at a Deal

  1. Five critical steps are common to all Real Estate deals: Information Gathering/ Information Organizing/ Analysis/ Reformatting/ Distribution; the steps remain paper-intensive and cumbersome.
  2. When the transaction goes digital, all the content is electronic and deals can be centralized in transaction centers that allow the process to be simplified and compressed; the key is that the dissemination of information is better organized.
  3. Application of technology changes every aspect of Commercial Real Estate - that is the juncture where the industry is right now.
Practicalities of Going Digital

  1. Aerial photographs, site pictures and site plans can be housed in one location on the Internet.
  2. Meetings can be held via the Internet to modify spreadsheets and negotiate contracts - changes are seen by all instantly.
  3. Microsoft Net Meeting and PictureTalk (an open standard system) are software products available now that integrate computer screen and speakerphone capabilities. 4. The result is that the transaction gets much shorter; within five years, you won't be competitive without doing business digitally.
Powerful New Impetus for the Internet

  1. New developments in consumer electronics - Internet phones and Internet televisions - will drive the Internet faster than ever because Internet access will no longer depend on expensive, complicated computers.
  2. By September 1999, all the major telephone manufacturers will launch Internet telephone terminals (at about $150) that automatically link voice and web page connections.
  3. The combination of telephone and Internet is a powerful communications medium - especially when the connection is simultaneous.
Impact on Real Estate Professionals

  1. Real Estate professionals will find the technology easy to use and universally available.
  2. In advance, Realtors must get prepared for everyone doing business on the Internet; biographies, business practices, aerial photos, building shots, site plans, etc., must all be digitized.
  3. The value of the digital transaction lies 20% with the public Internet and 80% behind the scenes with the intranet and extranet advantages for project management - work steps can be drastically reduced.
  4. The Real Estate industry is perhaps 8%-10% along towards making the change to the digital model.
Making the Transition to the Digital Model

  1. Commercial Real Estate business leaders need to be open-minded, aggressive and visionary to keep their companies successful; existing practices are hard to turn away from.
  2. Efficiency example: design, printing and mailing 10,000 brochures, plus the wait for responses can be reduced to 15 minutes to write a message and distribute it via a list sewn and get immediate responses.
  3. Education of Real Estate professionals is the key to breaking away from the old business culture.
Costs for a Commercial Firm to Go Digital

  1. Infrastructure costs are coming down: hardware costs are dropping; renting or time-sharing file servers is saving money; data sources are now up on the Net; applications are becoming easier through use of a standard browser.
  2. The greatest cost is for changing attitudes and increasing skill sets; professionals in an organization need to be educated to the new processes.
  3. Much of the money needed to support the change is already in budgets - being spent on things that will be unnecessary under the digital model.
Where Lessons Can Be Learned

  1. In Chicago, June 16-18, 1999, The Jameson Group is hosting Real Com - the first Real Estate technology conference specifically for the Commercial Real Estate market; the focus will be on digital transformation.
  2. The financial services arena has been on the forefront of applying Internet technology; continue to watch innovative companies such as E Trade, AmeriTrade and Schwab for insights.
  3. The Jameson Group offers services ranging from an educational speaker to a 2 1/2-day training symposium; other organizations and consultants are available.
Tools for the Mobile Broker

  1. Young's favorite tool under development is a web pad; you input and access information using a pen - very convenient at meetings; it will be on the market in about two years.
  2. Available and invaluable now is the notebook computer; carry CD-ROMs with the relevant information for your business so that you can retrieve information and put together documents right in your client's office.
Application for the Residential Industry

  1. Residential transactions are simpler than typical Commercial transactions; potential for streamlined operations in this side of the market is great.
  2. Surveys of Residential clients show high expectations for use of technology; Realtors must meet the challenge to be more knowledgeable in their use of the Internet than their clients are.
  3. The Society is in the process of establishing a private database to put members in touch with prospects who express interest in working with cyber-savvy Real Estate professionals; the RECS designation meets the need for certification in the use of technology.
Personal Favorites on the Web

  1. Pike Net gives general orientation to who is in the Commercial Real Estate market.
  2. The most valuable sites on the web are transaction environments (e.g. for loans), accessed privately by intranet and extranet connections with clients and colleagues.
What the Future Holds

  1. Companies in all industries in the future will be judged by their ability to do business in a digital manner.
  2. In three years, more Real Estate companies will be getting content online, via intranets and extranets, and getting their people trained.
Contact Information for Jim Young:

(v) 760.729.4312
(f) 760.729.0796
(e) jyoung@realcomm.com
(w)www.reapplications.com


Microsoft NetMeeting:
PictureTalk
E*Trade
Ameritrade
Charles Schwab
Pikenet.com