How to Build a Strong Reputation in Commercial Real Estate
If you know how to work with the market, commercial real estate can be a great way to build a fortune while helping your local economy. That’s because real estate provides the necessary space for company operations for practically every kind of business, with the exception of a very few virtual companies run entirely online. Since this industry is so vital to so many others, real estate investors are picky about who they work with, and they watch the market to see who is trustworthy and who offers fair market rates and competent service.
The most important thing to do is to be straightforward and honest, but this is not as simple as it seems. Some behaviors that have unfortunately become fairly commonplace among some segments of the investor base will work to undermine your ability to function in the industry by hurting your reputation for honesty. That’s why it’s important that you know which habits send the signal that you are a good investor to work with. After all, your reputation for making a great deal and closing it well is going to affect your possible market for properties when you sell, as well as the level of professional courtesy you can count on when you buy.
To start with, don’t play games. That means avoiding the impulse to change property prices immediately before an interested buyer makes a bid, for starters. It’s a common practice, but investors watch the market closely enough to see it happen and take note of who is doing it. You also want to make sure you avoid dropping the ball on a deal. No one likes to put a lot of work into negotiating for a property just to deal with someone who fails to close effectively. Those kinds of missteps can make you seem dishonest, and they can generally be avoided by having a good process for preparing to go into a deal.
There are a couple of ways you can avoid making these commercial real estate missteps. To start with, make sure you don’t bite off more than you can chew. Do your research into a property class thoroughly, and don’t make a deal around a property type you have yet to fully understand. On top of that, make sure you pay people on time and without too much quibbling over rates, so people know you respect them professionally. Last but not least, remember that you need to move into new areas carefully. Start small, with a pilot project. Then, expand your scope as you get evidence that your approach is working. That more than anything will get you a reputation for caretaking and diligence.