How You Can Earn More Money From Managing and Selling Your Commercial Property effectively.

1. THEY DEVELOP AN EXIT STRATEGY – BEFORE THEY BUY!

Every real estate asset must have an exit strategy. Ideally the exit should provide for the sale of the project when the owner perceives its value to be the highest. Timing is crucial since when the successful owner buys they buy and sell based on their predetermined criteria not the market criteria.

2. THEY HAVE CONTROL OF THEIR PROPERTIES…

Effective management is the key! Owners that profit most do not release total control of their properties to others. The key is control of the property and the day to day decisions. Successful owners have set up systems where they remain in control over someone else. Commercial managers – at direction of these owners- are perferred.

3. THEY JUST DON’T SELL THEY BUY

The effective owner understands long term perspective and is not in the commercial business to speculate. On an average the effective commercial property owner owns their property for 12-14 years before selling. Instead of seling, most effective owners prefer to refinance existing properties for down payment monies in acquiring more commercial properties to add to their holdings.

4. THEY USE SPECIALIZED REALTORS, ATTORNEYS AND TAX PROFESSIONALS

Generally, effective commercial owners use Realtors for advice, assisting in purchasing or selling their projects. Effective owners realize Realtors specializing in commercial properties bring much more value to their bottom line than a Realtor having an open house on Sunday and trying to assist a commercial buyer in purchasing a project on Monday. The same concept can be said for attorneys and tax advisors to the effective owner. THe cost may be little more but it far outweighs the long term wealth benefits of using such professionals.

5. IF THEY SELL – THEY NEVER “CASH OUT”

Effective owners will not cash out their properties – it creates to much of a tax burden and loss of hard earned equity. If these owners do decide to sell they will either use tax deferred exchange, UPREIT, or an installment sale – never all cash up front. Much advice is gained from other professionals before a property is sold.

6. THEY STAY FULLY INFORMED

By keeping in touch with market changes on a national and local level these owners are always in a position to make informed decisions about the operation of their commercial properties. They subscribe to newsletters, online publications and keep in contact with their sphere of professionals.