Do you have too much money in the stock market? Do you feel like you need to diversify into a new asset type? Investing in commercial real estate can offer steadily increasing returns, minimal risk, tangibility, the opportunity to cash flow with leverage and unique tax strategy benefits. If you are intimidated, we can help! While REC represents large developers, private equity firms and syndicate sponsors on their real estate acquisitions, we also represent first-time commercial real estate investors that are starting from scratch. Here is an outline of what that process looks like:
- Define the strategy: there are infinite approaches to successfully investing in commercial real estate. Different asset types (office, retail, industrial, land, hospitality) each have their benefits and drawbacks. Is your objective stability and conservatism or the maximization of profits? Where, geographically, are you going to invest? Do you have a lot of time to devote to your real estate investments or very little? What percentage of your net worth do you want to commit to commercial real estate? Does debt make you uncomfortable? Different strategies will offer a better fit based on your investment objectives but also your personality. Let REC take you through an educational exercise to determine what is the right fit for you.
- Build the team: depending on your strategy, a lender, contractor and property manager may become integral parts of your team. But an excellent real estate attorney, banker, accountant and property inspector are essential to your success. Let REC vet out the best professionals for you to successfully execute on your strategy.
- Execute: once we have established a plan, it's time to find the best property that meets your criteria. REC will conduct the search, tour properties with you or on your behalf by photo and video, negotiate the best terms possible on your behalf and counsel you through the acquisition process.
- Evaluate: you've made your first acquisitions. Perhaps an early renovation and repositioning of the property has led to a new long-term lease at a higher income level than you ever expected and you are sitting on a great deal of equity. Should you sell and 1031 exchange into a new acquisition, hold for the long-term or something in between? Let REC strategize with you on what the best move is to achieve your goals. As an acquisition-only brokerage, REC will never steer you towards the next transaction. In fact, if the time comes to market your property for sale or for lease, we will step back and recommend the right listing broker for you to engage, allowing you to rest assured that our sole role remains assisting you with your acquisitions only: no steering, no conflicts of interest and no grey area.
