The Encyclopedia of Commercial Real Estate Advice

CHAPTER 1Who Are You When Buying a Commercial Property?

It might seem strange for someone writing a book on commercial real estate advice to begin the first chapter by asking the reader “Who are you when buying a commercial property?” I am asking you this question because I have found it to be the most important question buyers of commercial real estate can ask themselves to save time and money.

Some of my buying clients clearly did not ask themselves this question. Many seemed to lack confidence. They spent so much time evaluating the wrong properties, and so many different types of properties, that I found myself spinning in circles with them and getting dizzy. Did they want to buy properties close to home or out of state? Properties that did not need any work, or those they could add value to? They couldn't make up their mind. For some, all the choices seemed to be too risky. They just could not decide on the level of risk they could live with. After bumping into endless walls, many found themselves quite miserable. Some just quit the process. Some made it through and actually closed on a property. But many of them ended up owning the wrong property in the wrong place at what turned out to be the wrong price.

And then I have had clients that clearly knew who they were and what they wanted from the beginning. Most of them were experienced. It seemed as though they were born to invest in real estate. I had fun working with investors in this group; we shared the love of the ...