Tips for Purchasing Your Own Stake in the Commercial Real Estate Industry

While most people know and widely understand the residential real estate investment approach, the commercial end of the industry sometimes gets overlooked due to the nuanced nature and opportunity of the sector. Having said that, the diverse opportunities within the commercial division should drive investors toward it. You have options, and before you dive into a residential rental property, you may want to consider different, often times larger fish with a bigger profit opportunity. Sound interesting, but don’t know where to get started? You aren’t alone, so I decided to put together a few tips for dipping your feet in the commercial real estate pool.

Ask Questions

Like the age-old saying, there’s no such thing as a stupid question so don’t be afraid to ask them. The more you know, the more likely you are to make a sound investment. If you find yourself asking what questions you should be asking, Kyle Pennell compiled a few questions to get you started like what kind of property and do you have a location in mind? You can find the full list here.

Find Professionals

This is where commercial real estate professionals like myself and the staff at SVN Northco come in. Because the industry is so varied, you want to find a realtor or advisor that has experience with your type of property. One usually doesn’t assume that because someone can sell a house Minneapolis, they can sell a house in New York City or Dubai. They need to have an understanding of the industry, property type and location. Large real estate firms have diversified portfolios that often span the globe, and as a result, they have more experience with major transactions like selling a resort or even a private island.

As described by Inc., you don’t have to know everything. That’s why you seek help from others who make it their mission to know the ins and outs of the commercial real estate sector. “They can help you determine the right time to buy or sell, the right locations to consider, and the nuts and bolts of closing the deal.” Don’t be afraid to seek counsel from a lawyer, broker, accountant or all three.

Do Your Due Diligence

After you asked the questions and determined the property with help from your team of professionals, you now need to check the bones of the deal. Even if a property seems picture perfect, you want to ensure that it is a sound investment. If there are problems – you want to find them now rather than six months down the line when you already bought into the venture.

Once it passes inspections and your own personal expectations – it’s time to take the plunge.

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Hidden In Plain Sight: Understanding Off-Market Real Estate Deals

Are you new to real estate investing? Maybe just the real estate market in general? When searching for a property, you may hear about people buying real estate you didn’t even know was on the market. As described in this article, “Off-market real estate deals were once the preserve of ultra-high-end properties. But whisper listings—or pocket listings as they are also known—have spread to a range of price points as more buyers and sellers realize the advantages of keeping things hush-hush.” With an evolving market, this has become a more common approach.

Typically when selling a piece of real estate, the owner uses an agent to promote and ultimately sell it. The agent then advertises the property through a Multiple Listing Service database more commonly known as MLS and handles coordinating open houses and walkthroughs from there. Now, especially in areas or with properties in high-demand, pocket-listings have become a more discrete approach to getting your property sold.

Of course, there are a few factors when veering away from listing your property with an agent for this more atypical approach. Sellers usually aren’t as eager to get out of their property. They accept that less exposure potentially extends their selling timelines. Rather, they wait for the right buyer at the right time with the right price all of which off-market deals can offer. The obvious enticing factor is also the discretion associated with off-market details. Instead of giving the general public an all-access look inside your home, brokers work directly with buyers who actually want something like your home and aren’t just open-house hopping to find interior design inspiration or see how their neighbors decorate.  

For buyers, off-market deals tend to pay off as well. They usually don’t compete with other bids since these listings are less widely known about. The price is also usually more reasonable since the seller’s commission is typically lower. Buyers looking to flip a property often find deals in this section of the market, but it takes experience and the right amount of background real estate knowledge. To reap the benefits as an off-market buyer, you also need to do your homework. These properties aren’t out for the world to see, so you or your agent need to ensure that agents with off-market properties know that you want in the ring.

This variety of listings isn’t limited to million dollar deals or celebrity sellers either. While some high-end properties take this approach for more discretion, others choose the pocket listing option because they were approached directly by a broker with a buyer in mind. It’s particularly common in an empty market where people aren’t particularly eager to sell like the Bay area where inventory is low, but the demand remains high.

When deciding whether off-market transactions are the option for you, consider these questions. Do you have a particular property in mind that isn’t on the market, but is the only option for you? If yes, then finding an agent to set up an off-market buy may be your best option. Are you looking for a unique or high-end home in an empty market? Again, pocket deals could be your best alternative. No matter the case, a skilled real estate agent can help you find the property for you whether it’s in the MLS Database or not.

5 Tips for Becoming a Successful Real Estate Agent

Frank Jermusek real estate agentWhether you’re just getting started or you consider yourself a senior real estate agent, there are always ways to improve your success with property sales and listings. Becoming a successful real estate agent doesn’t happen overnight – it takes practice and a ton of commitment. Here are fives ways you can improve your success rates as a real estate agent:

Be driven.

    • As a real estate agent, you should always be driven and determined to sell a property – regardless if it’s residential or commercial.
    • A great way to do this is to make a list of your personal goals for whichever project you’re working on.
    • Then, meticulously write out each step that will help you reach your goals – and get to it!

Be resilient.

    • There’s no doubt that as a real estate agent you’ll have both good and bad days, but it’s important to keep moving forward and not let yourself get down.
    • Be committed – don’t give up on a project or listing just because something gets in the way.
    • Remember, life will always throw curve balls – what matters most is how you handle them.

Learn from your mistakes.

    • There will be times where you make a mistake with a client or listing, but don’t let it affect you too much (we all make mistakes, in every profession).
    • Learn how to adapt and grow from the mistakes you make so that you can push yourself to be a stronger, more successful agent.
    • Mistakes aren’t fatal – they’re usually fixable, but you should know when it’s appropriate to just walk away.

Believe in yourself and the people around you.

    • Have faith that you will succeed in this business, and that the people in your agency will too.
    • Always be there to lend a helping hand, because chances are you will need one from your peers at some point.

Maintain a positive attitude and likable personality.

    • Successful real estate agents are always likable – be a people person. Nobody wants to do business with someone who comes off cold.
    • Maintaining a positive attitude will help fellow agents as well as yourself feel more determined and will bring more value to your work.

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Latest Listings | Frank Jermusek

Trails End Resort

Frank Jermusek

 

PRICE:
$1,825,000
NUMBER OF ROOMS:
9
BUILDING SIZE:
14,500 SF
PROPERTY TYPE:
Hospitality
LOT SIZE:
33.69 acres

 


Highlights:

  • Very popular full service, four season resort
  • 6.3 Miles from Canadian Boarder
  • 33.69 total acres
  • 803 feet of total lake shore
  • NOI – $188,447
  • 9 cabins, 8 camping sites, 2 lodge rooms and 1 unfinished cabin
  • Additional Development Land & Home Available

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Cornucopia Lodge

Frank Jermusek

PRICE:
$795,000
NUMBER OF ROOMS:
9
BUILDING SIZE:
7,000 SF
PROPERTY TYPE:
Hospitality
LOT SIZE:
56.0 acres
YEAR BUILT:
2008

 

Highlights:

  • Great Wilderness Location with activies such as horseback riding, skiing, backpacking, restaurant
  • Near Eagle Cap Wilderness (Oregon’s largest designated wilderness area)
  • Near Hells Canyon National Recreation Area – deepest river gorge in North America
  • New Construction in 2008 and well maintained
  • Current at 30% Occ- $58,700 NOI
  • Excellent Upside at 50% Occ – $91,040 NOI
  • Presented in Collaboration with: Hell’s Canyon Realty Inc | Steve Brooks | 866.893.6133

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Developmental Land – Family

Frank Jermusek listings

 

PRICE:
$425,000
PROPERTY TYPE:
Land
LOT SIZE:
1.73 acres

 

 

Highlights:

  • Property Size: 1.73 Acres
  • ASSEMBLAGE POTENTIAL TO 2.84 ACRES
  • Zoning: Residential / Multi-Family
  • Utilities: Full
  • Best Use: Multi-Family
  • 20-41 High Density
  • 12-24 Units Per Acre
  • Development Requires City Approval

 

* Please note: all of the information above is provided by Sperry Van Ness, check out their website with more of Frank Jermusek’s listings here!

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