Let me give you an example of just a starting place that simply grazes over the topic and now you need to gain knowledge and guidance.
You Google a topic such as Diabetes and you learn how the average person may get it and some of the solutions to prevent It or lower your glucose counts when you have it. Does that really substitute for your specialist to treat your condition namely an Endocrinologist?
If you think by going to Loopnet or Costar will solve your income or investment property issues, you are just kidding yourself! When you chose a specialist in any field you don’t go to ten of them at once you go with one until you see if he or she is getting the job done for you?
If you look up properties on a public website and call the broker you will get so many different answers to different questions your head will spin when doing that all the time. If you start with a professional that is experienced and has a long track record of success and knows the entire market place like an endocrinologist with diabetes, tell me you are not better off?
The one professional you chose will look up the different properties and tell you the difference of them all and not guide you to one or another for they do not have that particular listing. The broker you call on Loopnet or Co-Star might dwell on the one listing and may not tell you how great other listings are across the country that are not controlled by him or her or their firm.
The true professional broker will first ask you for your goals and thoughts before telling you how wonderful the listing that you called on. It may not be appropriate at all for your purchase due to many factors.
Equity needed, length of lease or credit of tenant, location, type of building, growing area, triple or double net lease, specialized building or generic structure. What is the expected net income, cash on cash return, expectation of increased value and tax-benefits.
Investors need guidance and in depth knowledge to make the right decision for themselves not hype and bluster of how great a listing is when they call a broker they don’t know. The broker represents the seller and their job is to put the positive image on their own listing not talk about other things when the client calls on that property.
When you deal with an independent broker that Is not pointing you in a particular direction but simply explaining the difference between all the strategies and assets presented, that is the best choice. Picking out that broker is the main issue not randomly going to websites and picking out random properties for their name or cap rate.
Doing research and interviewing a real estate broker based on years of experience and past deals completed, certainly can help you in the long run make the right decision yourself when selecting a investment property to acquire. Ask what sector they suggest for your age and risk reward tolerance level. Why do they suggest that are instead of another? Check out the stability, the increases in the rent or possible appreciation or the possible loss of equity when holding.
The overall tax benefits and the choices they have if done in a various manners with help from the CPA or real estate attorney.
Interested in buying or selling commercial real estate? Contact Jeff Gitt at firstname.lastname@example.org, or call at 314-757-1031 for a free consultation.