Start Investing In Real Estate – But Not Today!
Here’s what happens with too much distance between you and your investment. It will suffer from your neglect. An extra fifteen miles and minutes is enough to keep you away when an on site visit might really help.
Study kindergarten – sixth grade enrollment statistics (also available from the school district). Try to go back as far as ten years. You’re looking for growth in elementary school enrollment. Lots of growth equals desirable neighborhood.
Educate yourself. The only way to know that you are getting the best deal is to learn about the commercial industry and loan process for yourself. Interview a few brokers and talk about the options they may offer for your specific property type. A good broker will educate you on the loan process and provide you with resources for additional information. If the broker is not interested in helping you to learn about the industry, then take that as a hint. Either they don’t want to make the time for you, the client, or they prefer to keep you in the dark about how they are doing (or not doing) their job.
For example, if you put down 20% a year ago you will not be able to pull additional funds out and risk have the Loan to Value on a rate and term refinance coming out higher than 80%.
When you eventually reach the prospect or client, stay in contact with relevant information and market updates. Don’t delegate your contact processes to a support person or administrative assistant. It’s your business remember, and only you can make it happen. You as the agent must be responsible for your client relationships and database.
When looking for commercial property, especially for investment, price and location is key. It is possible that before the actual auction, one can look at the properties that will be available. One can even ask for some important documents that he or she can check to make sure that everything is in order. A solicitor can even help one out so there is less risk on the buyer’s part. Being able to check the property helps one check the location and determine if it will be a good investment.
That is what retail is all about. Juggling customer relations, employee issues, multiple tasks and thoughts (some of them great…but always forgotten) at the same time. Wow, aren’t retailers great! You bet they are, but it’s all this multi-tasking that hinders our potential greatness. Because of this we sometimes loose our focus and enthusiasm. That’s when, during good times or bad, we lose profit. So, in this first part of the article, let’s get refocused together and take an introspective look at our possible “low hanging fruit” or profit making potential.