Minority Brokers: The Industry Needs You!
General Posts
Last month I had the privilege to offer testimony to a joint hearing of the Subcommittee on Housing and Community Opportunity and the Subcommittee on Oversight and Investigations on the ability of minority small businesses to gain access to government contracting opportunities in the areas of housing and financial services. Take a moment to check out the comments I offered to Subcommittee Chair Maxine Waters and others: http://tinyurl.com/2doyx6a
Historically, minority businesses have been on the outside of this process looking in, particularly as it applies to the complex federal government procurement process. Truth be told, most minority small businesses lack the expertise and human capital necessary to navigate this process. So we’ve stood by and watched as others have gotten the business. But the world of government contracts isn’t the only area we’ve missed out on; we’ve missed out on other business opportunities too.
Despite the fact that minority neighborhoods were broadly impacted in the foreclosure crisis, Hispanic-owned firms have acquired less than 1 percent of the total supplier contracts from financial institutions. This was the point of our testimony and there’s new evidence that suggests the message is being heard. There’s a new movement afoot to increase minority participation across the industry as the foreclosure saga continues. Supplier diversity is the new watchword in Washington, D.C. Fannie and Freddie have issued a new edict to asset managers that their broker networks must now include minority brokers. They want and need culturally savvy, bilingual service providers to help market and sell properties in impacted minority markets.
This represents a tremendous opportunity for you NAHREP members. Businesses are now being mandated to add competent, established, bilingual and bicultural brokers to their ranks. Do they know who you are? My best advice to you is: Make it easy for them to find you! Take the time and invest the money to get certified as a minority business enterprise. The process is simple and straightforward. The cost is negligible. And the credential helps corporations identify you among their ranks as a minority service provider. Here’s a link to the National Minority Supplier Development Council and the offices in their network: http://tinyurl.com/2adpert
Do yourself a favor and take action on this; it’s not just a good tactic for the current market but a sound strategy for the long term. As the buying power of the Latino market rises, the demand for competent, bilingual and bicultural brokers will only increase! The upcoming 2010 NAHREP/AREAA Real Estate & Marketing Conference will feature useful tips on how to attract new business this way. Stay tuned for more details to come.
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Alex: Thanks for the information. I was a SBA small business consultant for many years and very familiar with the Minority Supplier Develpment program. I have over 40 years in the real estate industry. When I did busines with large business or the government, all I had to do was complete a one page resume or like form. In order to do business as a minority business I am asked and required to submit over 50 pages of documentation. Have you seen the forms that you need to complete and the personal business information. I hold a majority interest in a title company, however, the national banks are only interested in dealing with national size companies. You know, one call does it all to 50 States. When I contracted to do business with HUD, it was a 2 page form and I was able to get 2,000 orders a year. Now that I apply as a minority contractor, I have to complete 50 pages of personal and business information.If I forget that, and just apply as a non minority I have only 1-2 pages to fill out. I don’t see while minorities are required to prove so much more !