Commercial real estate is a tough business, and knowing the pitfalls from the onset can save you both time and money on the front end. As the market is leveling off and many cities are still reeling from the economic crisis that hit our country a few years ago, it has become increasingly important to know what you’re doing before you dive into the commercial real estate market.
1. Be patient
There’s a reason this tip is number 1. Being patient and taking your time to do the research needed on a particular property will mean the difference between your success or failure as a real estate broker. Commercial properties are different than residential properties in many ways, including the time it takes for these properties to be purchased, renovated, or sold. Getting impatient will likely result in a bad deal.
2. Spend a lot of time on the front end
Commercial properties will take a lot of time to screen and work out deals on. Of course there is a learning curve and you will get better at it over time, but it is extremely important that you take a lot of time on the front end to do your due diligence in research. Research everything: the area, the history, future planning/zoning, demographics, etc.
3. Build the right relationships
As with residential real estate, building a network within commercial real estate is crucial if you want to get the best deals on the best properties. This network that you build for yourself will make all the difference. Many properties aren’t listed before they are sold, so if you put the word out in your network about exactly what you’re looking for, chances are that someone will fill you in on property details that you wouldn’t have found through traditional methods.
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