As commercial real estate brokers, developers, and investors, professionals are usually asked by new investors all the time.
How do they find a lot of investment opportunities? Are there fewer deals out there today?
And for a lot of investors, the statement mentioned above is very true. Investing in commercial real estate can be both fun and pretty rewarding. But finding an excellent deal is usually the most frustrating part of the entire process. But from what we have seen, a lot of investors simply do not take the right attitude. This article will take a closer look at how to find excellent commercial real estate (RE) deals.
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People need to prepare themselves
If individuals are not taking the right attitude and approach when it comes to searching, then they are already behind. People cannot just make posts on social media platforms, announce what they are looking for once at real estate investors’ events, or tell agents they come across. Finding the next best investment opportunity should be at the forefront of anybody’s mind.
Make the search known – over and over
Like most experts said – announcing the search once and then throwing the white flag in defeat when no deals are falling in your lap can’t be your only strategy. Successful RE investors regularly reach out to their database to let people know what they are hunting for.
As a matter of fact, there are single-family investors in the United States. They ask every person they come across how much funds they are looking to invest in RE, regardless of whether they would have expressed interest in this industry or not. If people never ask, they will never know; if they don’t become their own converter first, no one else will.
Individuals should be very curious about all opportunities they come across with
People never know what they will find in deals that other individuals have missed. They should be well prepared to turn over all the stones in their vicinity. Just because something has been stagnant on the market for quite a while and people have seen it without making a move does not mean there is no opportunity out there.
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People should underwrite each opportunity that comes their way since these things could be far and few between depending on the investment criteria. There is an old saying in this industry that “people need to comb through one hundred deals to find one that fits their needs,” and there is certainly truth to this statement.
How to find good commercial properties?
If a person is looking for good commercial properties, whether they are a broker, business owner, or investor, there are ways how to find a good deal.
These professionals are likely a person’s best option when hunting for a commercial property because they are doing some, or not at all, of the other methods listed below. Reputable brokers are paid through commissions on deals that they close and source, so they are highly incentivized to keep an eye out for available opportunities. This industry is usually shrouded in mystery because there is no single database that tracks, lists, and maintains all available opportunities like individuals will find with multiple listing services in residential RE.
So, these professionals work hard to keep an active list of upcoming and current availability so that they can work to help them pair sellers and buyers together. And if the person is the one purchasing commercial real estate, the broker’s commission is charged to the seller, so the buyer will not even have to pay for the services rendered.
Since there is no database, people will need to work on their own. They need to get to know other RE owners in the area or the neighborhood they are looking to get property in by networking at neighborhood meetings or industry events. Investors need to let everyone know that they are looking for commercial investments.
The more ears and eyes they have out there working for them, the better – they simply never know when there is a good deal that is available on the market. There are a lot of property trade hands off the market – buyers met sellers at events that so happened to be interested in selling their properties.