When I founded a financial services company 24 years ago, I focused on the main business: hiring the right people, navigating the secret rules and recruiting customers.
As my business grows, I rent. I wondered why I pay someone else when I can buy it myself. That’s how I got into real estate. In fact, so many entrepreneurs will go to real estate. It starts with its own balance sheet and gradually turns into a lucrative side-sometimes more financial practice than the original venture that they started.
1. Buy what you know
If you buy property guides or study expensive lessons, you will be trained in the next lesson: Do your homework and research. As if it was not true in any industry.
However, if you succeed in your industry, you know a lot. You probably traveled around the area-and perhaps other regions and states-to get better scores in the most suitable and energy efficient offices to meet your needs. You know perfectly well that good business is for you to want, and which areas are most convenient for your employees and their customers. In other words, you are more qualified to buy a particular type of office building than many real estate professionals.
2. Let go of your ego.
Last month, I sold a funeral home in a low-income area twice for what I paid for it in 1996, and also paid for a significant income at that time. Meanwhile, I have friends who own expensive glass towers visible from the motorway, because they like to go on holidays, brag about their own buildings and hear, “Hey, I know this place!”
Few people know the places I bought and sold. Because I do not care about the cache, I do not pay the balance of the ego. I can negotiate more and pay less. Then I can sell my property to tenants and owners who are so adept at finding a good deal similar to me. It turns out that there are more dealmakers than successful companies wishing to spend more on the address of luxury.
3. preferential proof of your purchases.
In these lines I look the most optimal, because I look at the preferential properties. My friend just bought a beautiful Office building for $ 252 per square meter. He is smart and hardworking, and I hope that he will make money for the deal. I? I will never pay anything.
Real estate is a notorious enterprise “boom or bust”, and, like the stock market, it is almost impossible in an ideal moment. I learned this: a recession has destroyed high commercial markets, but it will not put all of the business out. Those businesses that are trying to cut, often abandon their high-end offices for more modest, and I own many of them.
In short: not only for me, just like my friends with more pleasant properties, I better sleep at night, knowing that things that I can not control will not cause me much pain.
4. Selling people like you.
Buying a valuable property for a better price is only half the operation. It does not matter how good a deal is if you can not turn and rent or sell. Realtors and brokers spend a lot of time trying to find tenants and buyers, and this is a percentage game. Many bites never bite.
But you have an advantage. You have purchased the property that you used, so that you are not only an expert in such a space, you can enter the shoes of your customers. You instinctively know how to sell your offices. You also have a strong marketing weapon. Hey, I’m not just a property owner, I’m a client. I understand your needs.
5. Do not create your drum.
Those who succeed in their main enterprises, and then in real estate, can do very well. They can also overcome. It’s almost a stereotype: “I won my industry, so obviously it means that I, too, can be a genius of real estate!”
If you go beyond the spaces that you know, you can still make money. What do you know about horse ranches before you bought it? Nothing. But I knew that I did not know. Snap it to the top, I did my homework.
So, this is my most important advice: it is better to finish a career in real estate just to buy your offices than to believe that you are bullet-proof and buy more risky properties than you think.