Have you ever felt that we are living in a fast forward world? If you have ever known anyone that's a stock day trader, you certainly know what I'm talking about. Stress City! But commercial real estate is a much different animal than the stock market. For one, it certainly does not need twenty-four hour news coverage like the markets.
The interesting thing I've found from both my own deals and working with many top investors is this: the best apartment and commercial property deals have all been slow movers. Slow in finding the property, slow due diligence, slow negotiations, etc. For the most part, the entire process was slow and not fast. I am convinced that if Warren Buffet were investing in real estate, he would not be flipping houses. He would invest in slow-moving, yet predictable commercial deals that can provide great wealth over the long term.
Remember that investing in the commercial property world is a long term commitment. I can say from experience that it is the deals that come together quickly that you need to be concerned about in commercial real estate. These are the ones that can disappoint you because of a lack of due diligence, glossing over the analysis, or attempting to “beat out other investors” by moving fast.
My recommendations on finding great apartment and commercial investment properties in the near future:
- Great deals will not be as easy to find.
- Great deals will take longer to find.
- You will need to be a very, very good manager to lock in profits.
- No more winging it.
- You will have to do more due diligence than in the past.
Bottom line? You will have to ask more questions, take your time, and you will create more wealth for yourself in the long run. Remember that commercial real estate is not like day trading. The best deals will take some time and effort, but will be worth it in the end. It is very much true that slow and steady does win in the commercial investment world.