Every Market has Room for Growth
With a decade worth of commercial real estate brokerage experience, I’ve enjoyed the opportunity to work with and learn from some great clients and associates in the field of commercial real estate investment. I love the real estate investment arena and have a front seat view, with active participation, to numerous deals and investment strategies. Based on my observations, I can say without a doubt, we are in the midst of a recovering real estate market after surviving The Great Recession. The past few years have provided many great buying opportunities, transfers of wealth, and reinforced principles that real estate is cyclical in nature and grounded in market fundamentals. However, opportunities for continued growth still exist in every market. Below are a few tips, nuggets of wisdom and my thoughts on real estate investment advice that I believe to be true.
Words of Investment AdviceReal estate investment is a marathon, not a sprint. Click To Tweet
- “Real estate investment is a marathon, not a sprint”- Rome wasn’t built in a day and neither is a great real estate portfolio. Singles and doubles can produce scores just like a home-run.
- “Invest in incoming producing properties”- Will Rodgers said, “Buy land, they ain’t making any more of it”, and I am sure that has worked well for many. I’d prefer to see the land have improvements with market demand.
- “I’m more concerned with the return of my money than the return on my money” – Invest in quality assets where you can create additional value. Appreciation is nice, but it is not guaranteed.
- “Always have an exit strategy”- If anything the past few years have taught us the markets can and will change. Be ready to change with it, and don’t over leverage.
- “Trust, But Verify” – A great quote from President Ronald Reagan, related to Russia and the Cold War, but it is just as important with real estate investments. P & L statements sometimes might as well be called “liar statements.” Just this week I saw a pro-forma that stated “0″ for Management. You’ve got to be kidding me! Who does this? I’ve never met a serious real estate investor that didn’t value their time or know the cost of hiring a capable property management. Which brings me to my next point…
- “Know Your Numbers”- Commercial real estate always has, and always will be a numbers game. I don’t subscribe to the “bigger fool theory” as an investment strategy. Know your numbers and work with a commercial real estate broker that is an expert in their market. They will bring value and creditable experience to the table.
- “One good deal probably won’t make a career, one bad deal can certainly ruin a career” -Demand accountability, responsibility and transparency from all team members. A great CRE broker will put their client’s interest over their own and in doing so be more concerned about their on-going relationship with their client instead of a single transaction. The Sperry Van Ness Core Covenants requires this.
There are many commercial real estate investment classes and strategies. I don’t believe in a magic bullet, other than hard-work and disciplined investment decisions over the long run. What are your great pieces of commercial real estate investment advice and lessons learned? Please leave your nuggets of wisdom in the comments section below, or send an email to me, letting me know.
About Kevin Wattenbarger – As a founding advisor of the SVN office in Panama City, Kevin has extensive knowledge and experience in the regional market. He specializes in the sales and leasing of retail, office, industrial properties and commercial land. Click here to view his full profile and listings, or to contact him, you can call him at 850-532-5454, or email him at [email protected] You can follow him on Twitter at @NWFLCommercial.
Photo Credit: “Tips Computer Keys” by Stuart Miles Source: freedigitalphotos.net