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Rainmaker
895,525
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

Have a business plan that is made of Play-Doh 😉 constantly being reshaped.

Study the market. Your broker can help you with that. Employment, Development. You need to have a gap analysis done to measure market potential so you know what kind of businesses might locate at your site, where symbiosis exists, and where there is oversaturation.

Do the math, pad your projections in all directions.
Allow yourself extra vacancy rate, extra reserves, extra expenditures.

An inferior location, even for a better price, is a bad call.

Take your time. Don't do a deal that doesn't make sense. It's better to marry at leisure than repent in haste.

Leverage your money if possible. Get resources for good local lenders who can also help you with analysis.

And hire someone that knows what they're doing. A lot of children are out there doing commercial real estate. Ask them how many deals they've done, how long they've been in business and if they worked with any large names.

Ask for references. And ask around. The best people have really good reputations.

Jan 05, 2020 12:26 PM
Rainmaker
5,571,934
Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

another question for Candice A. Donofrio 

Jan 05, 2020 12:23 PM
Ambassador
2,607,030
Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate - St. George, UT
So Utah Residential, Referral & Relocation REALTOR

Candice A. Donofrio may be able to offer some good advice. Great minds think alike Jeff Dowler, CRS!

Jan 05, 2020 12:22 PM
Ambassador
4,582,242
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Perhaps Candice A. Donofrio  will weigh in on this given her background

Jan 05, 2020 12:13 PM
Rainmaker
1,925,314
Anthony Acosta - ALLATLANTACONDOS.COM
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

Candice A. Donofrio has this one too.

Jan 05, 2020 03:49 PM
Rainmaker
5,591,480
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

James,

If CB RE is still doing their mentorship progam, I would join them and learn. A

Jan 05, 2020 01:31 PM
Ambassador
3,058,272
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

It looks like you are a broker/owner and real estate investor. I wish you all the best. 

Jan 05, 2020 01:03 PM
Rainmaker
1,901,261
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co Notary Services retired RE Broker

I did very little commercial but I can tell you this: The two biggest commercial sales people in Minot had no commercial experience but took the bull by the horns and dropped all residential interests, spent a bundle to market themselves as commercial Realtors, and within a year they became the BIG names in commercial. 

Jan 05, 2020 12:31 PM
Rainmaker
3,331,943
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

Learn the area. Hire the right agent. Be ready to purchase when you find a deal. Ask questions, complete due diligence and get an advantage through the agent you hire. 

Jan 05, 2020 12:24 PM
Ambassador
5,413,483
Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

Partner with someone who knows what they are doing.

Jan 05, 2020 08:23 PM
Rainmaker
546,583
Tom Bailey
Margaret Rudd & Associates Inc. - Oak Island, NC

I have some commercial real estate, but can't add anything to what Candice has said

Jan 05, 2020 07:44 PM
Rainer
318,050
Caroline Gerardo
Sun West Mortgage Corporation - Newport Beach, CA
C. G. Barbeau the Loan Lady nmls 324982

Who is your major tenant? How long are their financial legs? Will they be in business ten years after the end of the lease and need to expand or raise rent?

Jan 05, 2020 06:23 PM
Rainmaker
822,252
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Know what you're doing!

Jan 05, 2020 03:03 PM
Rainmaker
6,613,253
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Know the market.

Jan 05, 2020 01:18 PM
Rainmaker
468,799
Dan Pittsenbarger
Keller Williams Western Realty - Bellingham, WA
Improving Conditions

For me I have two points of advice for you.

1. Actually start. Find a property and write an offer on it and due you do diligence to make sure it's going to work. But the key thing is to start.

2. If it's not already make reading books on commercial real estate and how to purchase commercial real estate part of your daily agenda.

Jan 06, 2020 07:10 AM
Rainmaker
4,214,037
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Candice A. Donofrio has a primer for you!

Jan 06, 2020 03:54 AM
Ambassador
4,259,392
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

Well, I suppose you're seeking commercial advice - seek an experienced commercial broker - a seasoned one who works with investors.

Again, good luck!

Jan 05, 2020 08:43 PM
Rainmaker
599,769
David Gibson CNE, 719-304-4684 ~ Colorado Springs Relocation
Colorado Real Estate Advisers LLC - Colorado Springs, CO
Relocation, Luxury & Lifestyle residential

James,

Once again Candice A. Donofrio has given you an excellent start.

As a former bank president, mortgage lender, investor and now long time broker/owner I would add this.

Investors are in the money business first and real estate second.

Learn the money side very, very well before the buying and investing side.

The best commercial brokers and investors understand the money aspect and know how to structure deals for optimal financing.

Right up there in the cardinal sin category are properties / deals that aren’t good financing candidates.

As a lender, the first question I always asked on any new commercial / real estate deal was “what could we do or might have to do if this loan ran into trouble?”

You need a thorough understanding of why regulators put loans on “non-accrual.” Lenders hate loans that may or may not be performing but that regulators put on non-accrual.

You need to be well versed in the various financial statements and property records that lenders and potential buyers want to see. In particular, lenders like to see detailed “sources and uses of funds” statements in addition to balance sheets and P&L’s. 

You may have a great property or deal but if they lender doesn’t have confidence in your financial acumen you may get endless rejections.

Reminder – lenders loan money to people not property or deals. Lenders care about you as much or more as the deal.

Jan 06, 2020 09:29 AM
Rainmaker
991,615
Doug Dawes
KW Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Make sure you have an experienced and reputable commercial agent

Jan 06, 2020 07:20 AM
Rainmaker
2,642,262
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Know how to do the math...

Jan 06, 2020 07:13 AM
Rainmaker
889,177
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

Keep digging.
Learn how to ask questions that do not result in binary responses. The BEST information is revealed inadvertently.

The easily accessible information is not sufficient. Dig deeper.

Even though CRE deals are all about the numbers, attention is not. Attention is about the WHY? Develop a greater good vision that allows others to sojourn with you. Then maintain impeccable fidelity to the commits you make to yourself. An example is how others leverage their involvement the HABITAT.

Lastly, understand there is no shortage of money, just vision.

Jan 06, 2020 06:00 AM
Rainmaker
4,122,153
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

The best advice... to work with a commercial real estate specialist... since I am not that, I always refer.

Jan 06, 2020 04:42 AM
Rainer
2,685
Russ Fielden
Southern Coast Realty LLC - Hilton Head Island, SC
Buyer's agent in Hilton Head Island and Bluffton

Establish what you goal is and be conservative on the pro forma. 

Jan 06, 2020 05:38 PM
Rainmaker
1,640,186
Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West - Carlsbad, CA
Presence, Persistence & Perseverance

Follow the leader

Jan 06, 2020 09:38 AM
Rainmaker
1,387,778
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Study

Jan 06, 2020 08:30 AM
Rainmaker
1,232,727
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

The math never lies; do your due dilligence and know your clients' needs and goals. Know your market.

Jan 06, 2020 07:01 AM
Rainmaker
911,486
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

Best advice I can give is to talk to Candice A. Donofrio 

Jan 07, 2020 06:48 AM
Rainmaker
1,154,075
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

Don't waste my time. 

Jan 06, 2020 10:35 AM
Rainmaker
4,017,105
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Follow what Candice A. Donofrio has to say.  She is a pro!

 

Jan 12, 2020 09:32 AM
Rainmaker
4,943,909
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Not a commercial agent, but Candice has some.

Jan 08, 2020 01:32 PM