Commercial real estate investments are lucrative deals, provided you do them correctly. You should have a good knowledge of the market or take the help of an experienced expert to help you when it comes to venturing into the arena. With the proper knowledge, guidance, and planning, you can effectively optimize profits and get the best out of all the deals you make.
Eugene Bernshtam- the need for an action plan
Eugene Bernshtam is a project manager residing in America and a fan of music, entrepreneurship, and design. After a career stint in banking, he began an auto business and a real estate business. He gives a lot of importance to high work ethics and believes that it is the key to success. Besides these corporate ventures, he enjoys collecting cars, scuba diving, traveling, and weight lifting.
He is currently working in the development and investment of commercial real estate and is associated with Avalon Holdings LLC and its affiliated entities. His company focuses on apartment buildings and mixed-use properties. It specializes in management, investment, development, consulting services, and the repositioning of underperforming real estate assets.
Setting the parameters
According to him, you need to have an action plan for commercial real estate development and investment. You need to set out the parameters and make them your top priority in commercial real estate dealings. For instance, you should ask yourself how much can you pay and shop compare mortgages to understand how much you will pay for the lifetime of this mortgage. There are credible tools online in the form of mortgage calculators to help you develop the best estimates when it comes to determining the total costs of the property.
Additional questions to ask
The other key questions to ask are how much do you expect to make on the property deal, who are its key players, how many current tenants are staying in the property and paying you rent, and how much rental space do you require to fill-in?
In the opinion of Eugene Bernshtam, one should know how to identify a lucrative deal. Skilled professionals understand what a lucrative deal is when they come across it. Now, the question is, what is this secret? Well, firstly, they have a good exit strategy. The best real estate deals are precisely the same ones that you can walk away from. This is why you must have a very sharp landowner’s intelligence and eye. It would help if you looked for damages that demand repairs, understood how to assess risks correctly, and ensured to get the property that always will meet your financial goals in the long run.
At the same time, you should be fully aware and acquainted with commercial real estate metrics. This gives you a strategic edge in the market. Last but not least, like any business, always look for motivated customers as they drive income for your commercial real estate. The deal should always have a motivated seller as if they are not motivated, the doors to negotiation will permanently be closed!