Examining the Characteristics of a Successful Commercial Real Estate Investor (and Why They Matter)
Commercial real estate investment (CRE) has become known as one of the most effective strategies for building wealth and a healthy retirement fund - but it may not be the best industry for every everyone. Transactions often happen quickly, the working hours can be long and intense, and it is not uncommon for an investor to buckle under the pressure in such a highly competitive market. Examine the five characteristics of a successful CRE investor to determine if commercial investing may be appropriate for your real estate portfolio, and discover how a seasoned real estate lawyer can help to mitigate the risks in areas where you may fall short.
Characteristic #1 - Adept Listening Skills
Of all the skills that a successful commercial real estate attorney should possess, adept listening skills are, perhaps, the most critical. It is required during every phase of the commercial real estate transaction process, and it is how you ensure that you are meeting the needs and demands of your customers. If you struggle with listening, consider practicing this skill to improve your potential profitability in the CRE industry.
Characteristic #2 - Highly Knowledgeable in the CRE Industry
Knowledge in the CRE industry should go above and beyond what the trends are and where the “best deals” are happening. Investors should also know how and why certain spaces appeal to their customer base, and how having that “perfect” space can make all the difference between walking away and signing a contract (and potentially becoming a long-standing tenant or client).
Characteristic #3 - Savvy Enough to Follow Trends, Intuitive Enough to Anticipate Them
To be successful in the CRE industry, investors must be savvy enough follow the current real estate trends, as they indicate what it is that customers are currently looking for in the market. However, the most profitable investors know they must take it one step further - you must also be intuitive enough to anticipate the trends before they happen. Look for clues, such as the addition of more jobs or an increase in home sales in a suburban area to aid you in your efforts.
Characteristic #4 - Tenacious Enough to Overcome the Challenges of a Competitive Market
All real estate sectors present challenges for investors, but compared to the challenges in residential real estate, the ones found in commercial real estate are often on a much bigger scale. Commercial transactions tend to involve more money, there are fewer potential customers, and the competitiveness of the market can make for hostile exchanges between investment firms and their agents. The most successful CRE investors know how to do more than just rise above these challenges; they can literally turn those challenges into winning opportunities.
Characteristic #5 - Inherently Friendly Toward Everyone, Including “The Other Team”
In a market where reputation can mean the difference between closing a deal and losing the transaction, the most successful of investors know that they must be friendly toward everyone. That includes members of the “other team” - other real estate agents, investment firms, clients, etc. - because you never know when one of them is going to start looking for a change. Perhaps a deal goes sour, or a highly talented agent feels they are not getting the commission they deserve; either way, they will only consider your firm if they have a positive impression of it.
Contact Our Naperville Commercial Real Estate Attorneys
At Lindell & Tessitore, P.C. we aid commercial real estate investors during every aspect and phase of the transaction process. We conduct due diligence, skillfully handle even the most volatile of negotiation situations, and we do what we can to ensure that your investment is protected now, and far into the future. Schedule your consultation with our Naperville commercial real estate lawyers by calling 630-778-3818 today.