Sometimes our investment community gets wrapped up in the externals: the most advanced technology, the latest software apps, or a fancy office. However the image a commercial real estate company presents can be deceiving, and it isn’t the most important factor in a commercial real estate investment property’s success.
Here’s how to tell if a commercial investment property brokerage is what they say they are.
Having Commonsense And A Background Of Experience
How do they respond when you ask them a question? If you ask a professional their opinion or advice and they stammer, stutter or hesitate with the answer, it’s a true sign or indication that you may be dealing with someone leading you down the wrong path.
There’s a BIG difference between that and a response like, “that’s a great question. I don’t know the answer but I’ll find out for you quickly.”
The leading contender for commercial real estate advice should come from an experienced owner operator, along with a licensed commercial real estate background, connected to a company that has been in the industry for years and conducted and concluded many various investment deals.
When the professional is asked a question, can they respond rapidly with commonsense and stats behind the answer? That is a good indication that you’re in with the right person. If the person who exudes confidence and can show a past background of experience through buying, selling, managing, leasing, fixing and financing along with 1031 exchange deal strategies, that also indicates professionalism.
What The Investor Wants To See And Hear
Wearing a nice suit, driving a fancy car with a first class office doesn’t necessarily indicate the person can still fit your needs in the way of directing you to the best real estate transaction.
Walk the walk and talk the talk, certainly outshines the image of an office and it’s luxuries and surroundings. Performance in a timely fashion backed up with proper demographics stats and procedural advice is what an investor wants to see and hear.
The investor also wants to hear all the pitfalls and bad things that kind that can ruin a deal, not simply glorify the best points of the deal. The investor wants to know if the professional broker has enough commonsense to ask what their goals and expectations are in the way of a return and the length of time for that return?
What The Investor Needs To Know
What is the risk-reward tolerance level and are they willing to borrow money in order to make money and sign on the dotted line to guarantee that loan? The investor needs to know all the tax benefits involved in commercial income property along with the possible appreciation of the asset are trying to purchase.
Of course, a CPA, tax attorney, real estate attorney besides the professional real estate broker should team up to answer all these important questions.
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