The ultimate goal of any business under the sun is success. This is not an exception in the Real Estate business. The industry is guided by key success factors (KSF) critical to the success of the company. They are concepts anyone interested in the business or already in and looking to improve, cannot ignore.
The real estate industry [commercial real estate included] is growing, thriving and rewarding. It is an industry with immense potential and can be a source of income for many parties involved. However, what sets successful commercial real estate professionals apart from those who constantly struggle? Having and implementing the right knowledge can help make difference; it can make you go from failure to success in the commercial real estate world.
Do You Understand the Economy?
The economy is the fuel that drives commercial real estate business. It is the most significant determinant that affects the growth and value of the industry, and it cannot thrive in an ailing economy. When the economy is feeble or goes down, many businesses can hardly survive. It is not rocket science to gauge the economy. You only have to be keen on things like Gross Domestic Product (GDP), prices of commodities, business activities, etcetera. This is why it is essential that you are knowledgeable about the market cycle as every business responds differently to different economic times.
It is also not entirely about what the real estate can gain from a good economy but also what the industry does to improve the American economy. Residential real estate provides housing for families. Commercial real estate, which includes apartment buildings, creates jobs and spaces for retail, offices, and manufacturing. In 2017, real estate construction contributed $1.34 trillion to the nation’s economic output. That’s seven percent of the U.S. gross domestic product.
In real estate, your relationship with clients, partners, and others is the foundation of your business. You have to master the impeccable art of establishing relationships with people. It might seem like a laborious task at the beginning, but the most important part is to understand the benefits of building relationships with people. Relationships lead to referrals and referrals make your business sustainable. Remember, with the sealing of each deal, you are jobless until another, so how fast another deal comes your way depends on relationships. Good communication is key as can be read in the book written about Alliance International called “Negotiating Record Breaking Large Cap Trades” which can be found here.
Learning to be Patient
Patience is a virtue as they say. In commercial real estate, that virtue can lead to your success. As an investor, you must know how to conduct research which requires patience. The whole aspect of having a financial understanding will require much patience. It is the same patience that will see you through when you step back to have a long, deep look at the aspects of your investment, whether they are negative or positive.
Acquired Property? What Now?
Great! Now get out your comfort zone. Nothing happens when you acquire property and sit there hoping for appreciation. Embrace forced recognition and figure out ways of generating income from it or take a look at how Alliance International has helped others, like you, for years in our previous blog post.
Want to know more about Alliance International and how they became successful? Read more in our new series about the book called “Negotiating Record Breaking Large Cap Trades.”