Howard Johnson by Wyndham – Boise
Tips for First-Time Commercial Real Estate Investors
Considering investing in commercial real estate? Commercial investments can be a great wayto generate greater returns and expand your sources of income. The high possibilities forsuccess coupled with a booming global market make commercial properties anappealinginvestment opportunity.On top of these benefits, the CRE market has long been regarded as one of the safestinvestment routes-and even more so amidst conversations of changing economic tides.Foreign investors from all around the world are choosing to pick up commercial properties fortheir dynamic, lasting, and stable benefits
While investing in the commercial arena can be a profitable decision, expert insights can helpstreamline success. Start off your CRE investments strong with thesepieces of advice: here aresome helpful tips to help new investors find, negotiate, and manage their commercial realestate assets.
Get Smart with Negotiations
Investment negotiations are all about strategizing. Before jumping into a heated discussiontonegotiate the deal’s terms, come up with an all-star plan. Be sure to keep these 4 points in mind.
The art of commercial deal-making relies on tact. Consider your counter-party’sperspective when planning your approach and try to appeal to their wantsand needs.
Sometimes, the passive route is the best way to go. Expert investors are pros at takingthe tone of one who doesn’t really care which way the deal goes. This reverse-psychology tactic can instigate powerful outcomes to boost the deal.
Don’t shy away from silence. Take time in between listening and speaking to re-evaluatethe current trajectory of the conversation and see how you can gear it towards youradvantage.
When it comes time to review the deal’s key terms and details, make sure the interactionhappens in person. Investors should avoid discussing sensitive information over thephone or online. Plus, you’ll be cutting down on the potential for misunderstandings.
Due Diligence is Key
As in almost any business situation, the more you know, the better. Whether you’re a seasonedCRE investor or just dipping your toes in the field, everyone needs to stock up on information before moving forward. Due diligence is required in every area. Investors should know all aboutthe property itself and counterparty.Remember: it’s all in the details. Don’t skip over anything. Putting in the time and effort to studyup on the deal beforehand can pay off exponentially into the future
Show Them You Mean Business
New investors who find themselves in a highly competitive buyers’ situation need to get serious.
A great way to stand out from the crowd and assert your position as a strong buyer is by cuttingstraight to the chase. Investors can assert their presence amidst a vast pool of competitors byreaching out to the selling party with data, comparables, and some assurance to your buying capacity.
This is a great way to strengthen your offer, appeal to the seller, and get in good favor with thedeal’s listing agent.
Don’t get caught up in the stress of commercial investing and jump straight to the high-yielding portfolio with these insights