WRITTEN BY – RAHUL MALHOTRA, PROPCORNER EDITORIAL TEAM
1. Buy what you know
If you buy real estate handbooks or take pricey classes, the first lesson they’ll teach you is this: Do your homework and research. As if that isn’t true in any industry.
However, if you’re successful in your industry, you already know a lot. You’ve likely scoured the area and maybe other regions and states for the best rates on the most suitable and energy-efficient offices for your needs. You’re keenly aware of what’s a good deal for the square footage you desire and which areas are the most convenient for your employees and your clients. In other words, you’re more qualified to buy a particular type of office building than many real estate professionals.
2. Recession-proof your purchases
Real estate is a notorious boom-or-bust business, and like the stock market, it’s nearly impossible to time it perfectly. Recessions devastate the high-end commercial markets, but it doesn’t put everyone out of business. Those businesses trying to cut back will often ditch their high-priced offices for more modest ones.
3. Sell to people just like you
Buying a valuable property for the best price is only half the transaction. It won’t matter how good the deal is if you can’t turn around and rent it or sell it. Real estate agents and brokers spend a lot of their time trying to locate tenants and buyers, and it’s a percentage game. Many nibbles never actually bite.
You have an advantage, however. You’ve bought property you’ve used yourself, so you’re not only an expert in that kind of space, you can step into the shoes of your customers. You instinctually know how to market your offices. You also have a sharp marketing weapon.
4. Don’t believe your own hype
Those who succeed in their core businesses and then dabble in real estate can do quite well. They can also overreach. If you stretch beyond the spaces you know, you can still make money. It’s always better to end your real estate career simply buying your own offices than believing you’re bulletproof and buying properties that are riskier than you think.