by Gagner | Jun 14, 2015 | Commercial Real estate investing, Finding deals, Multi-Family Investments
Commercial Real Estate investing basics – Part 3 In part 3 of our commercial real estate series, we will continue from where we left off last issue, by sharing strategies on how to find deals in the specific markets you have selected. Just as the principles for picking the right markets are similar across all types of real estate, so are the concepts for finding deals. This topic can be boiled down to the following: your success in finding real estate deals depends on how well you cultivate relationships with an effective network of professionals. The majority of this article will focus on the people that can help you find the best deals and how to find those people in any market If you are new to a market, you will need to make substantial effort to develop rapport with all types of professionals, including commercial RE brokers, property managers, appraisers, RE attorneys and property inspectors. But Before you pick up the phone to start making calls, develop a clear picture on what you are trying to buy. You should have a general idea about the type of propoerty (discussed in part 1), how much money you have to invest, property class (A,B,C,D), cap rate and the strategy you are looking to deploy (ie reposition, value-add, momentum play, etc). Sites like www.loopnet.com and www.showcase.com can give you an idea about prices and cap rates within a given market for specific property types and classes. Once you have a general idea about your buy criteria, use the same sites referenced above to identify some of the active listing brokers in...
by Gagner | Jun 8, 2015 | Finding deals, Uncategorized
Finding Fix and Flip opportunities A few years back, it was pretty easy and profitable to do “cosmetic” fix and flips, but due to rising prices and “seller” markets, this is no longer the case in most areas. That means successful developers must find other strategies for creating value in their real estate business. We think one of the best ways to “add value” is to develop a strong sense of where the right amenities can be added to a property. In this article, we will discuss ideas that have worked well for us. The most common ways to add value are to create spaces that were not previously in the house (at least not on the tax records). We have found ways to create master bedrooms by finding adjacent spaces to a room that we could then use as a master bathroom. An unnecessary alcove in a kitchen allowed us to do just that in one remodel. In our Victorian project, we used a large storage space behind a wall to create an upstairs bathroom. Our Victorian was also a project where we took a downstairs basement and converted it to a bedroom. In another project, we are reconfiguring an unpermitted space to add a master bedroom/bath and a 1/2 bath (we have to move the existing bathroom to do it). The point is that you should get creative when walking properties, so that you can pick up on these value add ideas that others might miss. Sometimes the best way to find these spaces described above is to look for them in houses that have bad layouts. Bad layouts...
by Gagner | Apr 12, 2015 | Finding deals
How to Find deals Previously I wrote a blog on where to go and how to network with people who might help you find great real estate deals. I find this an important topic because it is the people that I have developed strong relationships with who are bringing me the majority of my deals today. Meeting the right people is the crucial first step, however you must nurture these relationships in order for them to be productive. For this blog, I will assume for a moment that you have already met people who may be able to help you in your business. Let’s now focus on how to rise to the top of the list for each and every one of those important people that can help you find a deal now. I have 3 golden rules that will help you succeed in most aspects of your life and business, and they certainly apply to developing strong relationships. First, do what you say you will do. Second, be easy to do business with. And last, help others succeed with no expectations. Apply these simple guidelines to the people you meet, and they will serve you well. Amazingly, following these rules will also make you stand apart from most others. Finding deals thru your “network” is simply about being “top of mind” with those people who are effective at identifying the deals you are looking for. Staying in regular contact with people is pretty basic stuff, but most often it is where we fail. The more you can prioritize and systemize your communications, the more likely you will succeed...
by Gagner | Feb 22, 2015 | Finding deals
Your network equals your net worth. It is true that the people you choose to be around will generally have a significant influence on you, either good or bad. This is true for all areas of your life, including real estate investing. To take it a step further, I believe that leveraging the knowledge, resources and good will of those people in the business of successful investing will not only help you get started, they will also be a critical source of the leads and opportunities that are the life blood of any real estate business. I would like to explore the many ways of meeting the people who will help you on your journey to successful investing. This is all about networking to find real estate deals. Joining your local REIA (real estate investing association) is probably the simplest and quickest way to meet like-minded investors. Google “real estate investing association + your city” and you will likely find multiple groups. These groups generally contain everybody from beginners to experts. The 1st rule is not to be shy. Get out of your comfort zone and talk to as many people as practical. To network effectively, you must show sincere, genuine interest in the people you are meeting. Ask questions, be curious and most importantly try to figure out how you can help them. The most important question might be ”how can I help you be more successful?” If they are unsure how to answer the question, here are a few ideas: 1. Offer to help find deals (more on that later). 2. Help connect them with other resources...
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