All the so-called commercial real estate investors that are really part-time operators that succeeded a few times when purchasing income properties and now think they are smarter and better than the pros 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.
Unless you have been through all commercial real estate was like Jimmy Carter 21 percent interest rates, tax laws changing in 1986 or so, devaluing income property overnight, tech crashes, recessions and a host of other negative occurrences, leave your pride at home when talking to pros. Don’t keep thinking your hands on approach versus the best in the business guiding you is better than giving up some control over yourself.
There are plenty of investors more experienced, less likely to fail when things go sour than you. Being lucky is great; being experienced, bright and lucky is better. My point is to open your ears and brain to new strategies delivered by pros than have the tools and connections to get you in a safer position for years to come.
This could mean investing in triple nets, using 1031 strategies, IRA investments, Alternative diverse commercial real estate investment funds, or purchasing a host of different asset groups like retail, warehouse, office, medical or apartments.
Since there are a host of considerations to make when investing in commercial income property far more complicated than cap rates, and really based on your individual risk/ reward tolerance level, the pros can offer solutions to these various issues.
A few phone calls that an experienced pro can make in hours may be able to save the commercial real estate investor thousands over the long run. Stop thinking because you had some success in the past due mostly to commercial real estate in general in major cities rising like crazy regardless of what you paid, that you are wise beyond your years!
When the next negative event happens in the world which many are predicted your luck just may run out like Donald Trump in the past. You may not have the staying power of “The Donald” so come back to reality.