At this point, assuming you have approached your research logically, methodically and systematically, you are starting understand the overall market as well the details and nuances.
This is a very good thing as you are about to discover. All your previous research and effort is about to pay off handsomely.
You are slowly but surely becoming an informed commercial real estate investor. One who really is doing his or her homework. You don’t know it yet, but you’ve probably gotten a multi-million dollar education.
Your next step in the process is to start to build you promising property list. This is a list of separate properties that meets one or more of the following criteria:
Number #1, your list consists of the property type you want and it is located in an area you find desirable for investment. And these properties are available. You want to start putting together a list of 50 to 100 or so property which may be viable investments for you.
The second type of property you are looking for is property which isn’t necessarily the type you want, but the land IS zoned according to the property type and use you want. This is highly desirable, because there is an opportunity to tear down and build according to highest and best use.
Stated differently, as you begin to drive around, you’ll notice properties that can be torn down. And the zoning will support a property which will be more appropriate to the zoning that’s already available.
Your list of properties will begin to grow and grow. But you’ll want to be a little bit discriminating. You don’t want every property, just the ones you can see yourself acquiring.
By the way, this approach has another side benefit.
As you start to analyze the “pick of the litter”, occasionally things will happen that force you to gracefully back out of the acquisition conversation on a specific deal. Having a list of 50 properties in your back pocket gives you tremendous feeling that no matter what happens there’s always another deal to quickly take it’s place.
A friend of mine has a habit of saying “You have to kiss a lot of frogs before you find your prince.”
Also, what you’ve done is automatically given yourself some options to play with. You’ll have more confidence talking to an owner or broker.
In short, right from the start, you’ll deal from a position of power. It’s a very strong position to be in. especially when talking with brokers (who usually like to be in control of the information flow.)
Because as we said earlier in this article series, “Information is Power.”
Knowing the area intimately, knowing the zoning, being selective about the type of property you’re interested in acquiring are all important steps in the commercial real estate investment process.
With this information, you’ll be on your way to picking a property that’s right for you. One that will giving the kind of appreciation, income and cashflow you want. One that truly meets your criteria.
Specializing in commercial and investment real estate, Tony Seruga, Yolanda Seruga and Yolanda Bishop are always searching for new and profitable commercial properties across the U.S. Visit
http://www.maverickrei.com for more great information.
