Search Results for "commercial real estate investing"
Investing in Commercial Real Estate – Back in the Game
Posted by: | CommentsGreetings from Cedar Crest, NM….
I am still trying to get back on top of things. This summer has been extremely busy….but great too!
I have received a number of emails regarding my blog. Honestly….I was surprised. Thank you! I need encouragement all the time and your emails and your request for me to write more has given me the inspiration to start again….so….here we go.
A jump start in the real estate market? Well….yes and no.
I do most of my investing in the Southwest. El Paso, TX is going nuts. Did you know El Paso is experiencing a housing shortage? A huge deal indeed. Last year my partners and I purchased a down-and-out apartment complex and today it is running 100% occupancy…..that is after rent increases. Yes….more rent increases on the way. This apartment complex blew our conservative analysis out of the water. Now….investors are heading to El Paso, TX from all over the country. 2500 units online to be built in 2011. Experts are saying that is 5000 units short of what is needed. Unreal!
Well…what about Albuquerque? As an associate broker with Grubb & Ellis | New Mexico, I am seeing a hint of recovery. We are seeing an increase demand for retail space and a little more activity in other real estate sectors. Although we are no where close to what the demand was two years ago. Albuquerque commercial real estate is doing much better than 2009.
Overall, I strongly feel this is a great time to invest especially in markets that have hit bottom and are now starting to see a hint of recovery. In the Southwest, El Paso, TX is well on its way. Albuquerque, NM is starting to crawl out. Keep an eye on Arizona and Nevada….I am predicting that it will take a little longer for them to hit bottom. Hard to believe it could get worse for those states huh? Maybe I am wrong. Either way….the time to buy is here.
Until next time……rob
Savvy Commercial Real Estate Investors are Sitting on Their Cash for Now
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Greetings from Albuquerque, New Mexico
‘A whole lot and a whole not’ sums up the last few weeks here on the blog.
How long has it been? Well, it has been one heck of a ride for the last few months. I have been attending a few luncheons, a couple seminars, and a handful of meetings and they are all saying the same thing:
‘Cash-rich investors are sitting on their money waiting for commercial real estate to hit bottom.’
Once it does, the assumption is the investors will jump in with both feet. This is what is called vulture investing. You can read more about it HERE.
The belief is that there will be a dramatic tipping point sometime late this year or early next. The assumption is that this ‘tipping point’ will start with the banks doing a mass liquidation of assets that are on their books. This huge sell off will be a mountain of discounted assets in order to move the assets quickly. This will led a domino effect that will dramatically pull values down even more. I guess the real question for me is what is taking so long? We are seeing a little bit of liquidation here and there but not what everyone was expecting.
Although there is some positive press that things are turning around. Most experts don’t buy it. What do you think?
When a question like this comes up, I start following the money. The problem is the money is not going anywhere….hence…there is my answer.
Until next time…..rob
Getting Started in Commercial Real Estate on Your Own And Without the Sales Pitch
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Greetings! My blog just got hijacked. I wonder how that happens…..well….I guess the bright side is that the “blog terrorist” felt this blog was getting enough traffic to hijack. Well….for those of you that had to endure the nonsense….I apologize. I wish I could tell you it would never happen again…but then…I am not sure how it happened in the first place.
Anyways….
One of the biggest lessons I have learned in my limited time in real estate investing is that the people to learn from are those with real experience. As with many of you, I started with books and “boot camps”….and in some cases that works well with residential investing. But with commercial real estate, the stakes are much bigger and the learning curve is much steeper. But the “gurus” don’t tell you that.
My biggest mistake was I did not research the people I was learning from. Learning how to invest from a “guru” that had limited experience with commercial real estate was a big mistake. Even more of a mistake was learning from gurus who were using other people’s experiences and successes as their own to sell their program. Yes…this happens a lot more than we think.
Luckily, I was so hardheaded and ignorant, that I took the information with confidence and pushed through. Sometimes you can push so hard that you take down a wall. Fortunately, at the time, it was the right wall. But, with that said, there were a lot of mistakes that only guidance from experience professionals could have helped me avoid.
Now…what I am NOT saying is…”it takes years of experience to start investing in commercial real estate.” That is not what I am saying at all. But….what it does take is the correct education and guidance. Honestly….this is the best way and your success can be realized much faster than you think or what others tell you.
So…you are probably expecting a sales pitch here….but on the contrary, here are some tips on how to get started on your own….that is right…. how to get started without a flashy package and a smooth talking guru….
Rob’s thoughts are ideas on getting started in commercial real estate:
1) Keep your money for now. Thinking about spending 2K, 5K, 10K on a good looking”how to invest in ……” package where the marketing says “20K in value…but for a limited time….only $4,999.00 you can have the plan to wealth…and my personal phone number.” When you hear that….tighten up…have a cup of joe….and remember my words here…KEEP YOUR MONEY.
2) Buy a good book on commercial real estate. Don’t buy a book from a “guru” where all the information in the book is to push you to a boot camp. Now…there are good books out there that are trying to sell you something, but they give you a lot of value too. One of my favorites is Investing in Commercial Real Estate for Dummies by Harris and Conti. A great book in explaining the basics. Another of my favorites but will bore you to tears is The Handbook of Commercial Real Estate Investing by John McHan. The importance of reading up on commercial real estate is to see if you even have a true interest. If the books above get you excited, you may have commercial real estate in your blood.
3) Take a Real Estate Licensing class. I recommend Kaplan based on my experience. The licensing class does not mean you have to get a license. It is a good course to get you familiar with the laws, codes, etc., in your area for not only real estate but property management as well. I learned a lot in my licensing class. More than I thought I would. But I also learned that one of my instructors had no clue about commercial real estate….just residential 
4) Take the Certified Commercial Investment Member (CCIM) courses. This is the boot camp you want to attend. Yes…it is somewhat expensive and time consuming. There are four classes and each class lasts five days. But, if commercial investing is where you want to be, this is the course you want to take. This will help you analyze projects at depths you had no idea existed. You will also learn how to do demographic studies, leases, etc. Plus the networking at these courses are invaluable. When you finish all the courses, you will have an opportunity to get certifed but you will have to meet some strict and demanding guidelines just to qualify to take the final test. But…I digress.
5) Find a friend, make a friend. Find someone in your local area that is successful at doing what you want to be doing and follow their lead (also known as modeling). This is by far the best advice I can give you. If you have a great interest in commercial real estate, finding someone who is a success at it is the best thing you can do for yourself. This may take some time and it is uncomfortable at first….but well worth it. Chances are this person/mentor will be a real estate agent/broker/CCIM investor.
If you do all the above and still want to go to a smooth talking guru…..by all means….but I definitely went full circle starting out with gurus and ending up with the “right way.” Real experience from real investor is by far the best way to find success in commercial real estate.
Until next time…..rob