Most successful businessmen know that in order to succeed, you need a strong team working with you to achieve a common goal.
A cohesive team allows investors access to the extensive knowledge held by each member, ensures decisions are made based on logic and not emotion and provides needed support when things go awry.
Commercial real estate is no different, and if you want to maximize your chances for success, you need to assemble a competent team of professionals who will help you scale your investment portfolio to the next level.
So, we’ve decided to present you a list of the people you need on your team. Keep reading.
1. Commercial Real Estate Broker
Some investors are certain that the best way to find properties is to do it on their own. The reason that finding properties should be relatively easy, and that once they find the right one, they’ll be able to take it on their own.
The truth is that an experienced broker can save you a lot of time and heartache and of course, money. Although only sellers pay a commission fee, even if you’re a buyer you’d do well to make sure a broker is on your team.
There are several reasons why having a broker in your team is an excellent choice.
First of all, nearly all commercial income properties are off the market. The exclusive details about these properties are not usually not revealed until after the deal is sealed. Your commercial real estate broker will have the connections you don’t, to find the best deals for your investment goals.
Second, a commercial real estate broker is an expert with a wealth of on-the-job knowledge that you won’t find anywhere else.
2. Commercial Real Estate Attorney
An attorney who specializes in the commercial real estate is a must-have for your team.
Most investors realize that a lawyer can help draw up documents necessary for closings and other real estate transactions. But an attorney can be helpful in a number of other ways as well.
For example, a lawyer can help minimize the risk you expose yourself to during a transaction. And while certain types of transactions require the use of a lawyer each time, you can also have your lawyer draw up standard documents – such as a tenant lease – that you can use over and over again when needed.
An attorney is also essential during negotiations, by making sure both parties stay focused on the details of the negotiation without falling prey to emotional considerations.
And lastly, attorneys can help ensure critical deadlines are met by the other party. So for example, if a seller is dragging their feet about providing important documents needed for the closing, the attorney can legally force them to provide the requested materials within a reasonable amount of time.
3. Contractor
A reliable, high-quality contractor, though hard to find, is an essential part of any investor’s team.
Whether you need a major renovation or simply need to replace the carpets, a trustworthy contractor can make a real difference in your bottom line.
4. Mentor
A good commercial real estate mentor isn’t just for newbies. Newbies and experienced investors alike can benefit from help focusing and developing their strategy.
Although podcasts, blog posts, and books can help expand your knowledge basis to a certain extent, the best way to truly understand the ins and outs of the commercial real estate is with the help of someone who has already been in the trenches.
When choosing a mentor, you’ll want to make sure they have experience in your specialty.
This enables them to not only give you specific advice on how to handle a variety of situations but if they’ve been in the business long enough, they will have seen both the ups and downs of the commercial real estate, which is critical for your long-term success as an investor.
At the same time, the mentor should be someone who is still actively involved in investing – not someone who spends the majority of their time teaching seminars and mentoring students.
You’ll also want a mentor who is actually available when you need them. Many decisions in the commercial real estate have short deadlines and need to be dealt with fairly quickly. It won’t help you if your mentor has a tremendous amount of experience but never picks up the phone when you need them.
And lastly, your mentor should invest in your success from the beginning till the end. From the initial purchase, till the exit strategy is implemented, there will always be opportunities to make a profit – or lose one.
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