All the so-called commercial real estate investors that are really part-time operators which succeeded a few times when purchasing commercial income properties and now think they are smarter and better than the pros; they need to RETHINK their positions.
Similar to stock gains when the overall market is rising and taking all the stocks with it regardless of their true values, the stock player can’t compare their abilities to the pros with some minor success they have recently.
After all some monkeys throwing darts at a stock board made money in a rising market.
Just A Simple Word Of Advice For Commercial Real Estate Investors
I have spent a lifetime in commercial real estate and still learn something new every week about commercial real estate investments by speaking to pros across the country that have new ideas, better strategies and are simply smarter than me, although I’m plenty good at what I do.
Remember there is always somebody better than you in everything. Simply join their side instead of trying to prove you are the best at controlling the real estate deal. My simple advice sometimes go along for the ride with the right real estate investor that is able to control larger higher quality assets than you but allows you to ride their coat tails.
What The Pros Repeatedly Do For Their Success In Commercial Real Estate Investments
Some companies see all the best deals first and cherry pick from dozens without huge competition due to the ability to act fast, pay all cash and close the majority of the time. This gives them huge advantage with banks and owners that need to close fast with a quality buyer at a discount.
They allow the little guy in their deals and pay a nice yearly return where the sponsor makes all decisions. They have their own money in deals and are very protective of their investors. They are in this business for long term and want everyone to make great returns to keep investing for years with them.
These same pros diversify into different asset groups and don’t expect their investors to be on loans or have cash calls. Holding periods are usually 5 to 8 years before selling hopefully for a profit that is split among owners. All the normal tax benefits such as depreciation and these investments are not subject to stock markets ups and downs.