Three Dynamic Deal-Makers in Commercial Real Estate Transactions

by : Emil Emilov

Commercial real estate can be a very lucrative field for investors, especially if an investor knows how to get a great deal. When investing in commercial real estate, you want to make sure that you will get a deal that will quickly get money in your own pocket. Investors want to insure that they have a great deal that will work well and bring about a quick profit to help them further their business and success as an investor. Whether you are brand new to the commercial real estate market, or you are an old pro, there are three important deal-makers that you need to keep in mind if you want to get the most out of your real estate transactions. They include looking for economic and population growth in the area of investment, dealing with motivated sellers, and finding properties that are under priced for quick appreciation and profit.

Dynamic Deal-Maker #1 - Rapid Economic and Population Growth

If you want to make sure that you can quickly turn over your property and make a great deal of money on your investment, you will want to make sure that you invest in property that is in an area of rapid economic and population growth. Investors that invest in areas that are not growing economically or by population will find that it will be more difficult to turn over their property for a profit. Be sure to look for an area where the economic growth is very strong, where you can see evident progress, and where there are new developments that are happening. This will help you to invest in a market that is vibrant and will help you to get the best possible return on your investment.

Dynamic Deal-Maker #2 - Deal with Motivated Sellers

Another dynamic deal-maker that investors need to remember is to make sure and deal with sellers that are motivated. If you deal with a seller that is intent on getting their price no matter what, it can take a great deal of time to come to a deal, and you may not be able to get a great price. When you are dealing with a seller that is motivated, there are more likely to want to get the property sold, even it requires them lowering their price a bit. Dealing with a motivated seller can help you to get a much better price on the commercial property, and it will also help you to complete the deal in a quicker amount of time as well. If you are a smart investor, you will bypass the sellers that are not really serious about selling and go right to the sellers that are truly motivated and ready to sell the property. No doubt dealing with motivated sellers will help both of you make the profit you want to make on the commercial property.

Dynamic Deal-Maker #3 - Find Under Priced Properties for Quick Turnover and Profit

If you really want to make it as a commercial real estate investor, you will want to start looking for properties that are under priced. When you find properties that are under priced, it can help you easily turn the properties over and allows you to make a great deal of profit off of the property. You want to find properties that will quickly appreciate so you can increase your cash flow as an investor. Take the time to find out what the market value of the property is and find out if the price of the property is below the value. If it is, then this is a prime property for you to invest in for optimum profit. If you are considering a few different properties, use the price and the actual market value to help yourself come up with a ratio that can help you compare various properties to find out the best one for your investment. This will help you ensure that you can make a quick profit, which will help to improve your business as a commercial real estate investor.

Tips to Remember

Once you start using these three dynamic deal-makers, no doubt you will start to see a rise in your profit as an investor. Still, there are a few tips that you need to remember when you are investing in commercial real estate. It is essential that you as an investor come up with your own criteria for evaluating commercial properties for investments. Make sure that the system you come up with is unbiased so you can make the best decision that will bring you the most profit possible as an investor. Investors also need to remember that becoming emotionally attached to a particular property can lead to disaster. You need to focus on the numbers and how much you can make on the property and make your decisions based on the facts instead of on your emotions. Evaluate the specifics of the deals, and you will find that the deal will either make perfect sense to you, or it will not.

Following these deal-makers and tips can greatly help any investor that is dealing in the commercial real estate market. Remember, investors are in the market to make a profit, and you want to do all you can to make the most profit as fast as possible. Use these dynamic deal-makers and you will be able to increase your cash flow and your success as a commercial real estate investor.