Do you know how to complete a successful commercial real estate transaction? There are 7 steps to completing successful commercial real estate transactions, learn step 1 in this article.
Our experience over many years of completing successful commercial real estate transactions has shown us that there are 7 major steps to keep in mind for each property deal that you do. Following these 7 steps will give you an edge over your competition in completing successful commercial real estate transactions. We want you to believe this: if you simply follow these steps and become their master, you will PERFORM beyond your wildest expectations as a commercial real estate investor.
Let's spend a little time on the first step here so everything will fit properly into place.
Note: The steps as they are displayed here may not be in the actual order you will perform them when you are working on a transaction.
Which product or property type do you get most excited about? What area of commercial real estate investing are you most interested in to pursue and master?
Once you have made this decision, now it is time to begin the learning process. Immerse yourself in the information available on this type of product in your area. Talk to the brokers who specialize in this type of product.
Get the information packages they have available on listings they have now (or in the past) and read everything you can about the product. Read the financial statements in the packages and become familiar with "real" numbers in your area.
What are the operating expense ratios, taxes and insurance costs? What is a fair management fee and what are leasing costs or tenant improvement costs that apply to this product? Knowing the answers to these questions are key to completing successful commercial real estate transactions.
Once you have studied 3 or 4 of these packages, you will begin to have a very clear understanding of the real financial information you will need to look at for each package describing that property type, and a better idea of what those numbers should be in your area.
Don't worry at this point about whether something is a "deal". That's NOT what you're after here, to go after commercial properties that are listed with available packages. You're simply getting familiar with how these kinds of projects are presented in the market place.
Also talk to property owners and other "experts" in the area and learn as much as you can about "Cap Rates" and income expectations of other people who are buying or selling this type of commercial project you've decided to pursue in your local and/or buying area (you may decide to invest outside the area you live, and that's your choice). This is your competition in the area so it is always a good idea to know what they look for and expect.
This completes step 1 of knowing how to complete successful commercial real estate transactions. Stay tuned for Step 2.
ATTENTION: Here's how to invest for phenomenal secured returns in large-scale commercial real estate projects all across the country without shouldering all of the cost or risk yourself. Take advantage of the Infinite Returns™ program and invest together with the members of commercial real estate buying group HIS Real Estate Network. Join Stew Spence and the Real Deal Team for an upcoming educational presentation online to get information or to get started now:
commercial real estate investing
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