Buying property and investing in real estate can be a stressful process especially if you are not sure the best way to find opportunities. Everyone wants to find “The One”. You know the “the one” that is going to make you rich instantly. So what is the safest way to find “The One?” It is connecting with that one good broker or brokers?
The Digital Age and Real Estate Investing
Today’s digital age has made it easier for investors to find that perfect deal. There are a ton of profitable commercial and multi-family real estate properties for sale with several property listing websites that carry all kinds of asset types and classes.
The access to large numbers of websites and information can sometimes be overwhelming or confusing. Especially for first time investors but knowing exactly which sites to look for can make the process less complicated.
This can be tricky for most new investors. They are not sure where they should go or what is the best market to make the most money.
Start In Your Own Backyard
Make it easy. Contact brokers in your area and ask them to give you information regarding the current state of the market. If they don’t give you the satisfaction you are looking for, then concentrate on the surrounding secondary or tertiary markets near you. Once you identify the market it’s about executing with your broker and finding the deals that will put you in the driver’s seat.
Is It Easier Than It Looks?
I know what you are thinking “this is easier said than done” but here are some easy steps to make sure you are finding the best opportunity for your commercial real estate business and with any luck these tips will help you communicate effectively and get you “The One” that will change your financial future.
STEP 1: So Which Real Estate Types Best for You?
The first step for new investors is to figure out what market they are going to pursue and to identify what are their criteria. Also, what type of property are you interested in pursuing?
Is it Multi-family, Office, Land or Medical Office? This is important information to know when discussing properties with a Commercial or Residential broker or agent. Because they are going to want to know what you are looking for. Once you have identified your type and your criteria it is easier to locate the best website to find specific deals.
STEP 2: How Do I Get Off-Market Deals?
One of the most common questions for a new investor is “What is the difference between off market and on market deals?” Many new investors don’t know the difference. You will hear some new investors say a broker just gave me an off-market deal, but when you go onto one of the many websites anyone can see that deal. So, what is an on market deal?
On-market commercial or traditional listings are the most common way to identify properties for sale. These properties are currently on the market, and are listed on the MLS (Multiple Listing Service) and are in the hands of an agent or broker.
Most commercial property sales are on-market properties. Competition from other buyers and investors are extremely high and can cause some sort of bidding war. This is why most investors prefer off-market deals.
What is an off-market deal? Off-market properties are not currently for sale by the owner or actively listed on any real estate listing site. Usually, one broker or brokerage firm has the listing and will typically give the listing to whomever they believe is capable of performing and acquiring the property.
Unlike on-market deals, investors do not face competition because the property isn’t listed on any website of through MLS. If you are fortunate enough to get an off-market deal you have the ability to dictate price because the broker is usually only dealing with you.
STEP 3: If I Cannot Get Off-Market Deals, What are Some Sites to Find On-Market Deals?
Here are some sites that most new real estate investors use to find deals in their market.
LoopNet is an online marketplace for commercial property, primarily providing commercial property listings for sale and for lease in the United States and is currently owned by commercial property data company CoStar Group. www.loopnet.com
Commercial Real Estate Exchange, Inc. (CREXI) is a commercial real estate (CRE) marketplace based in Los Angeles, California. Since 2015, Crexi has become one of the most popular and fastest-growing CRE platforms. Crexi is the most active CRE in the industry with over 500,000 commercial listings with a property total worth more than $1 trillion. Millions of users consisting of buyers, tenants, and brokers use Crexi to easily transact and lease the user-friendly platform. Due to the platform’s continuing growth, Crexi now employs more than 175 workers. Its growth will likely produce more employment in the future. www.crexi.com
Coldwell Banker Richard Ellis (CBRE) is an American commercial real estate services and investment firm. It is the world’s largest commercial real estate services and investment firm. For investors, CBRE provide capital markets (property sales, commercial mortgage brokerage, loan origination and servicing), property leasing, investment management, property management, valuation and development services, among others. www.cbredealflow.com
CoStar Group (CoStar) is the leading provider of online real estate marketplaces, information, and analytics in the commercial and residential property markets. CoStar Group provides commercial real estate information, analytics, and online marketplaces for real estate transactions. Its research services include online services, www.costar.com
Marcus and Millichap is a leading firm specializing in commercial real estate sales, financing, research and advisory services. It popularized the practice of listing properties exclusively with one brokerage firm. www.marcusmillichap.com
Consider signing up for our live Multi-Family Millions 2-hour Workshop to learn about the system our founder, Dave Lindahl, used to invest in multi-family properties, which he once controlled over 9,000 units across the United States!
Jermaine Evans, Coaching Coordinator
RE Mentor
Thanks Jermaine for this educational breakdown.
Thanks Dave.
Thanks for sharing this information and knowledge
This is great information.
Thank you