Commercial Real Estate (CRE) is a difficult business to be successful in. It requires patience, knowledge of the market, experience and much more. However, when you’re trying to strike a deal with a potential sponsor or investor, there are a couple things that you need to keep an eye out for. You’re looking for a sponsor with the expertise and experience to successfully manage the property within the deal and the transparency of all aspects to ensure that all things are going to remain on a mutually lucrative term.
Expertise and Experience in the CRE Market
Anyone that tells you the commercial real estate business is a liar and a fraud. There are so many different aspects to the market that you truly need a plethora of success to be seen as a professional. All of this comes with time and good decision making. When you’re dealing with specific types of deals, you’re going to want someone who specializes in these deals. You don’t want your run-of-the-mill real estate agent handling your big business properties. Also, you want them to have experience in the areas that you are willing to conduct your business. These two skills combine to give you’re a professional and well-respected Commercial Real Estate investor.
Transparency with your Deals
Many people don’t end up going into the commercial real estate market because they don’t know if they can trust someone with their money. These investments are made to identify, underwrite and manage the properties you are investing in. However, some real estate sponsors don’t want to have full transparency within their deals. It is important that you don’t have someone telling you everything will be easy and not to be worried about. We highly recommend being very upfront about wanting transparency through all aspects of the agreement. A lot of these deals carry high risks, and its important to know what you’re working against.