To find the best deals in commercial real estate, it’s important to establish a pipeline tracker to store information about properties. This can include online listings, but it’s important to remember that the best deals might not be publicly available. Viewing multiple properties is important for making informed decisions and avoiding risks like overpaying or missing important details. As an investor, it’s important to be patient and willing to look at dozens or even hundreds of opportunities before making a purchase. Building a strong pipeline and monitoring deals over time can help identify the best investment opportunities.
In light of the recent report by a recent article by James Nelson on Forbes, finding the best real estate investment deals involves more than just a quick online search. While digital connectivity and social influencer trends may make it seem like the best deals are found online, many opportunities in the commercial real estate world are not readily available to the public. In addition, seeing only a limited number of properties could lead to risks such as overpaying or missing important details in a building.
Nelson suggests that finding great investment properties involves a numbers game and requires a solid pipeline in place. He breaks down the process into five steps that investors can follow as they build their own real estate portfolio.
Step 1: Establish a Pipeline Tracker
The first step in sourcing the best real estate investment deals is to establish a pipeline tracker. This can be done using Excel or another database system. For each potential property, include the address, a link to the property, contact information for the listing broker or owner, and the deal metrics. The goal is to have a system in place that allows for quick analysis and decision-making.
Step 2: Check Publicly Available Options
The next step is to check publicly available options. This includes online listing sites such as Co-Star and LoopNet, as well as broker websites. Keep in mind that what you see on these sites are the opportunities that brokers have decided to publicly share with the masses. The best deals may not be readily available to wide audiences, and you won’t be able to catch a glimpse of the opportunities that are off the market.
Step 3: Network with Brokers
Networking with brokers is an essential step in sourcing the best real estate investment deals. Identify who the most active investment sales brokers are in your area and reach out to them. In some secondary and tertiary markets, brokers may act as generalists, offering services as both sales and leasing brokers. Building relationships with brokers can lead to off-market opportunities that are not available to the public.
Step 4: Attend Industry Events
Attending industry events is another way to network and find off-market opportunities. Real estate conferences and trade shows are great places to meet brokers, developers, and other industry professionals. These events provide an opportunity to learn about new trends and developments in the industry and to make valuable connections.
Step 5: Leverage Social Media
Finally, leveraging social media can be a powerful tool for sourcing the best real estate investment deals. Follow industry influencers and thought leaders on social media platforms such as LinkedIn and Twitter. Share your own insights and engage with others in the industry. Building a strong social media presence can lead to valuable connections and off-market opportunities.
To finalize, sourcing the best real estate investment deals requires a combination of digital and analog strategies. While online listing sites and social media can be powerful tools, they should be combined with networking, attending industry events, and building relationships with brokers. By following these five steps, investors can build a solid pipeline and find the best investment opportunities.
