Tips for First-Time Commercial Real Estate Investors
Tips for First-Time Commercial Real Estate Investors Considering investing in commercial real estate? Commercial investments can be a great way to generate greater returns and expand your sources of income. The high possibilities for success coupled with a booming global market make commercial properties an appealing investment opportunity. On top of these benefits, the CRE market has long been regarded as one of the safest investment 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 for their dynamic, lasting, and stable benefits. While investing in the commercial arena can be a profitable decision, expert insights can help streamline success. Start off your CRE investments strong with these pieces of advice: here are some helpful tips to help new investors find, negotiate, and manage their commercial real estate assets. Get Smart with Negotiations Investment negotiations are all about strategizing. Before jumping into a heated discussion to negotiate 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’s perspective when planning your approach and try to appeal to their wants and needs. ● Sometimes, the passive route is the best way to go. Expert investors are pros at taking the 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-evaluate the current trajectory of the conversation and see how you can gear it towards your advantage. ● When it comes time to review the deal’s key terms and details, make sure the interaction happens in person. Investors should avoid discussing sensitive information over the phone 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 seasoned CRE 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 about the property itself and counterparty.