There’s no denying it: everyone loves a great deal.
Sure, most of us claim the big one comes only once in a very great while.
We’ve all spent time working on the “bread and butter” deals that pay our bills. But secretly, we believe the next great deal is just around the corner.
Is it impossible to find great commercial real estate investment deals time and time again? Or is there a system you can implement to help you separate the wheat from the chaff?
Actually, success – in any field- means not just achieving the one-time hit, but being able to hit it out of the ballpark again and again. In order to do that, the major players have a system, a blueprint, that they use to achieve success. Commercial real estate investment is similar: establish a structure you can use to spot good deals, and you’ll be able to leave behind the bread and butter deals and head straight to dessert.
LEARN TO THINK LIKE THE BIG GUYS
The first game you need to win in any field is to change your mindset. In order to achieve big wins, you need to see yourself as playing in the major leagues. Changing your mindset affects doesn’t just affect how you think: it affects your actions as well. Once you see yourself as commercial real estate professional, you’ll be forced to change your actions to fit your concept of who you are.
One of the most important things to do as a professional is to make sure you learn what the insiders know. And while an incredible amount of useful information can be found in books, if you really want to take it the next level, you need to hang around people who know commercial real estate investment well, or better yet – find a MENTOR who’s willing to share what he knows.
CREATE A GAME PLAN
Every commercial real estate investment deal needs a PLAN, something that will help you decide whether or not a particular deal fits in with your real estate investment goals. Certain questions can be answered before you even check out the property, such as how much you can afford to pay, and who the key players are. Others, such as how much you profit the deal should bring, take research and time to figure out.
Once you map out the parameters, going through the necessary steps of evaluating a deal should take less time.
Establish a plan, decide how you’ll carry out each step, and automate as much of the process as you can, or delegate some tasks to a virtual assistant.
HAVE AN EXIT STRATEGY
Don’t assume that it’s more important to close a deal- lest it get away- than to spend hours of tedious time needed to find out about every aspect of a commercial income property. Due diligence is a critical part of telling a deal from a dud, as is deciding under what circumstances you’ll walk away from an otherwise promising deal.
Succeeding as a commercial real estate investor does require you to know about the little things, such as IRR, letters of intent, and tax reduction strategies. However, true success requires keeping your eye on the big picture as well.