Let me give you an example of a starting place that simply grazes over the topic. 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. You find out some of the solutions that can prevent it or lower your glucose counts. Does that really substitute for your specialist to treat your condition namely an Endocrinologist?
Commercial Real Estate Public Websites
If you think that searching on Loopnet or Costar will solve your income or investment property issues, you are just kidding yourself. When you choose a specialist in any field, you consult with ten specialists at once. You are having a meeting with one of them until you see if he/she is getting the job done for you.
If you look up properties on commercial real estate public websites and call the broker, you will get so many different answers to different questions that your head will spin doing it all over again. If you start with a professional that is experienced and has a long track record of success and knows the entire marketplace,aren’t you better off?
The professional you chose will look up among different properties and tell you the difference between each one. 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/her/ their firm.
The true professional broker will first ask you for your goals and thoughts before telling you about the listing that you called on. It may not be appropriate at all for your purchase due to many factors, such as:
- Expectation of increased value and tax benefits
- The length of lease or credit of the tenant
- Specialized building or generic structure
- Triple or Double Net Lease
- Expected Net Income
- Cash-on -Cash return
- Type of building
- Equity needed
- Growing area
Gain knowledge And Guidance
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, rather than to talk about other things when the client calls on that property.
When you deal with an independent broker that is not leading 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 the commercial real estate public 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 can certainly help you in the long run. Make the right decision when selecting an investment property to acquire.
Ask which sector they suggest for your age and risk-reward tolerance level. Why do they suggest that instead of another? Check out the stability, the increases in the rent or possible appreciation or loss of equity when holding.