Revamp to Your Fitness Amenities A few final tips for anyone considering an amenity redesign: with your architect. For example, it is important to get the HVAC correct for safety reasons. • Know the stages of rede- sign, which are schematic design, design develop- ment, construction docu- ments and construction. • How far to go with the redesign should be tied to your market and the class of the asset you are managing, devel- oping and owning. In a hyper-competitive urban core, architecture selection may be more important or as import- ant as a condominium with refined finishes and thoughtful touches to create the experience which would drive your market rents. Having enough time to plan this redesign thought- fully is important, but the processes of making these decisions with stakeholders are even more important to a successful redesign. Surround yourself with knowledgeable people who are creative and thoughtful and you’ll be on the road to repositioning your asset and creating a frequent- ly used amenity. • • Hire an architect to work in conjunction
I will not buy a note, no matter what a great deal I think it may be, if I do not want to own the property. What would I do if I ended up owning an abandoned factory or a gas station with environmental issues? I know what to do if I find myself owning a single-family house, a farm, or some other prop- erty type with which I am comfortable. The lesson is to stay within your comfort zone! In the unlikely event of default, if you do your due diligence before you buy the note, and if you follow your personal risk criteria, default can be very profit- able for you. Speaking of taking the right precautions, a friend told me that he once bought a first mortgage note at a considerable discount with tremendous equity that gave him a yield (“interest rate”) well into the double digits. He had about $15,000 invested in an $80,000 property. The debtor stopped paying after a few months. My friend sent the usual letters demanding payment or else. The drunk- en debtor called him in the middle of the night and said, “F-you, I’m going to burn down this place right now!” My friend – who, as the first lien holder, was the primary insurance beneficia- ry – replied, "Don’t do that! Wait until I get there with the gasoline and matches!" • > Continued from :: PG 69 Lead Generation through Networking get out of it, I have the mind- set of knowing that I am ex-
actly where I am meant to be and looking to have mean- ingful interactions. In fact, if I can meet someone and help them make a connection for their business then I feel like the event was a win. The reward for my business and me will likely surface somewhere down the road. As real estate investors, the Think Realty confer- ences are a great example of where you should be to meet people who may have opportunities for you, either now or years down the road. It’s all about showing up. Set a goal for yourself to have X amount of meaningful conversations or to give out a certain number of business cards. Always follow up with the connections you made, and then look toward the next event you are attending, then the next and then the next. Oprah says, “Luck is preparation meeting oppor- tunity.” Sometimes the more people you encounter the luckier you become. •
investors locate sources of collateral and funding they may not have considered. Combined with a growing awareness of ways to self-di- rect using retirement accounts and in- creased investor education about the com-
how a commercial owner has managed to raise his returns in an existing space.
cases, interest rates may affect their short-term strategies in commercial real estate, espe- cially if they often find deals for specific clients who may have broader-reaching policies that react when interest rates rise or if they do a lot of “flip- ping” in the space. Whatever your strategy, the best move is to remain informed about interest rate movements but not permit yourself to become mired in the discussion. Instead, focus your energy on evolving with the market and generating the best returns for yourself and, if it applies, for your cli- ents and customers, and the interest rates will take care of themselves. •
> Continued from :: PG 25 Find Your Math Problem to Generate Leads and Success For us, it is all about the math. We have a number of properties that we want to be able to buy and sell each month to provide our buyer investors with the best prop- erties. To do that, we have to have many proper- ties coming into our inventory. We know the number the number of calls we need to make, as well as the num- ber of networking opportu- nities we need to attend in our market. It doesn’t matter the scale you're working on — you just have to figure out the formu- la that works for you. What are the numbers that you need to hit to make the next deal? Figure out that math, and you will be successful. • > Continued from :: PG 26 Building Your Investor Network with a Realtor Justin Melo, a realtor with the Rogers-Melo Team at LAER Realty Partners who has been working with investor clients since 2010, confirmed, “[Find- ing an investor client to work with] is all my network. When I have a good property for an investor I put my feelers out there with the financial plan- of mailers we need to send out, the amount of money we need to spend on PPC and Facebook,
ners, lenders and attorneys I work with. Everyone knows someone who is looking.” And it’s true, real estate investors know other investors looking for properties just like they are. A close relation- ship between an investor and an agent can expand both people’s networks in mutually beneficial ways. And isn’t it true that the more people you know, the more leads you get? Investors should look to their realtor’s connections as an extension of more clients. All in all, realtors and in- vestors live and die by their lead sources. Those with consistent leads, whether they are new clients or new property deals, have more opportunities to create more income from better leads. Learn how to network with each other, and join different networking groups in order to find success in this arena. One of the best ways to con- trol your networking group is to start your own. Invite your preferred professionals for a get together once a month. This is a great way for your team to meet each other and network together. It will keep you at the top of your network’s mind and generate more referrals for your growing business. • > Continued from :: PG 41 Before Resolutions Begin, Consider a their network and a reliable source for leads. Realtors should look to investors’ connections to be a reliable source for
INTEREST RATES ARE JUST A SMALL PART OF THE EQUATION It certainly seems likely that interest rates on commercial loans will rise in the future. In fact, they are rising already. However, it is vitally import- ant that investors remember that interest rates alone do not make or break a deal. In some cases, they may affect what type of property you choose to purchase or how you lever- age your ownership of that property once it is under your control. In some investors’
mercial sectors, includ- ing retail, restaurants,
warehouses, and office space, this trend bodes well
for investors even if interest rates do head northward in the coming year. 4. Our space is responding well to pressure. One thing I notice a lot is that many commercial investors who get bogged down in the interest-rate worry cycle spend a lot of time fretting about becoming obsolete. Whether the topic is Amazon or millen- nials or terrorism or interest rates, commercial investors are constantly concerned their sector is under threat. In reality, the commercial space is hugely adaptable. It has to be, considering how much it costs to build a commercial building! Just last week, I toured a single pad-site food hall with eight tenants sharing a dining area and a central bar and entertainment area, and the concept is working out perfectly. That demonstrates to a “tee” how traditional vendors are adapting to the new shared-space society and, furthermore, it demonstrates
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Affinity Loss Prevention Services
39 67
American Association of Private Lenders
Anderson Business Advisors
2
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Investor Review: 10-11
81
DHLC Investments
3; Investor Review: 14-15
Kwikset
80 23
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88; Investor Review: 12-13
OwnAmerica
11
Private Money Lending Guide Radius Renovation Group
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78
> Continued from :: PG 71 Banks Still Want to Lend
Realeflow
Investor Review: 4-5
Real Property Management
27 31
Real Wealth Network Renters Warehouse
87 ; Investor Review: 8-9
not particularly helpful in this regard either. However, in 2018, I’ve found more and more lenders are willing to not just work creatively with investors who already have strategic financing sugges- tions, but they will even help
RentFax
72
Secure Pay One
Investor Review: 2-3 Investor Review: 16
Sharper Business Solutions
Think Realty
6
> Continued from :: PG 45 Note Investing fromAfar
US Probate Leads
71
84 | think realty magazine :: january / february 2019
thinkrealty . com | 85
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