time to be in commercial real estate and an exciting time to be a woman in this sector as well,” she said. PAMELA J. GOODWIN ON “TAKING THE LEAP” “I think everyone has a certain fear of breaking out of what is comfortable for them and starting some- thing new. Working with Chili’s, I was very comfort- able with a six-figure in- come and all the free food I wanted! But the harder I worked, the more projects they gave me, and while that was good for them it made me realize that it was time for me to take that leap and go into commer- cial real estate on my own.” “I prepared a business plan and identified three ways that I would make money at my own firm. In my case, I decided to focus on consulting, brokerage, and development, so that I had short-term, middle-, and long-term money com- ing into the business. “So many people let fear prevent them from doing what they really want to do in their lives. Just getting the confidence to do that first deal is so beneficial. I always advise when you’re going to learn something new, team up with the right person to show you the entire ropes of how it’s done. That’s what I want to do with Think Realty and Commercial Real Estate 101.” •
firm specializing in developing and investing in retail and restaurant pad sites with a national footprint. “We do it all,” she explained, noting that her business relies heavily on her ability to establish and retain contacts throughout multiple indus- tries. “We work with national restaurants and retailers to acquire land, do all the due diligence, work with city hall, hire the architects and civil engineers, do the pro forma, and eventually figure out exactly howmuch profit you will make on each deal,” she said, citing as an example a recent deal wherein she worked with Mattress Firm to convert an older, freestanding, 3,000-square-foot building to a sales location for the company. “It really is all about your net- work,” Goodwin added. Her online con- tacts, active social media presence, and regular physical meetings with key city planners and officials keep her company well ahead of the curve when it comes to knowing what companies might be relocat- ing to an area and what areas of her state and country are most likely to be targets for new development next. This recently enabled her to identify risk factors asso- ciated with two companies planning to downsize later this year. “This is an exciting
the time for two reasons: it allows investors to have a level of confidence that they are not left on their own if a property forecloses, and it forces a higher level of underwriting on our side of the equation because I won’t loan on something I’m not comfortable with possibly having to own.” While experienced flippers and rehabbers may not need a hard-money lender’s help and advice, having a loan from a lender who makes personal guarantees can help if you are new in real estate. Even experienced investors often rely on Barney’s second opinions because he has a vested interest in helping them turn a profit. “I want the borrower to sell the house, make a nice chunk of change, and pay my investor (and me) back according to the terms of their loan,” said Barney. “Then, I want them to come back and do it again!” A personal guarantee clause from a hard-money lender can mean you have a good, experienced source of information quite literally waiting on your call. • Myths Debunked grandson, who just happens to be an attorney. He informs you that his grandma still isn’t feeling any better and recom- mends you turn the incident in to your liability insurance. You contact your agent and let them know what happened and your carrier comes back and declines the claim! How can they do that? Easy. The second you decid- ed to pay Mrs. Jones’ deduct- > Continued from :: PG 95 Insurance
investor I know, “What is the biggest difference between you and all the others?” You may find his answer surprising. He told me, “Not much. I just have a long histo- ry of executing consistently.” So get out there and build your contractor bench. Finding contractors can be daunting, or it can be pretty darn easy. You may as well choose easy. Create a system for every aspect of your busi- ness, starting with finding, vetting, and managing your bench of contractors. •
ing’s design into its natural habitat and to restore the relationship between humans and their environment,” Fettke explained. “When considering an investment in any company or property, it’s important to consider how the project will improve the lives of others,” she added. “Offering a much need- ed-service, sometimes one that people don’t even know they need yet, is the secret to success. Plus, it just feels good to use your money and energy to help make a differ- ence in the world.” • > Continued from :: PG 90 future. If that zombie mall is simply stagnating and there are no actionable plans to improve the situation, you could be looking at a downhill slide in property values in the area. Networking with community development managers municipal officials will help you remain abreast of current development and commercial trends. • > Continued from :: PG 92 Private Lending and Personal Guarantees housing crash. Barney no longer had access to the commercial lines of credit he’d used for funding, so he did a capital raise with family and friends. “When I started relying on personal capital, I made that personal guarantee,” he said. “After that initial capital raise, I decided to do it all Commercial Investors vs Zombie Malls
ible, you diminished your carrier’s ability to defend or settle the claim. You should have called your carrier at the first word of a potential liability loss because you have an obligation to your carrier to put them on no- tice. Liability insurance car- riers have full defense teams in their arsenal to defend you, and those teams are part of your annual liability cost. Use them and never attempt to settle a liability loss on your own. • > Continued from :: PG 103 2 EffectiveWays to Get the Best Contractors on Your Team If you’re a new investor, I know this can seem daunt- ing. It doesn’t have to be. Trust me. Just be yourself. Most of all, don’t lie and don’t try to be a big shot. If you don’t have a deal, simply say, “I’m looking for contractors who would be willing to work in [insert neighborhood]?” Get the contractor’s num- ber and email. Also ask if he is licensed and insured. Then say, “If I hired you, would you have a problem getting me a few recent references?” That’s really it. You don’t need to strike up some big conversation with these guys. They’re working hard on another job, so your main goal should be to make contact and then get out of the way. Also, it’s possible you may walk into a house and discover that the owner of the property is present. If this happens, be respectful of the situation and remember
> Continued from :: PG 11 3 Strategies for Staging Investment Properties
that you essentially are, from their perspective, “poach- ing” their guys. Explain you saw the trucks out front and you are looking for a few reputable contractors for a project. You don’t need to go into a lot of details about your investing business. Just apologize if they seem upset and move on. NOW, GET OUT THERE AND DO IT Success is all about execution. I once asked the most successful
remnant material or even a table cloth if you don’t want to buy new fabric or hang real curtains. Install a one-by- four piece of wood over each window using L-brackets, then staple or hot-glue the fabric in a waterfall fashion over the top.. The family room and master bedroom are the best places to add these drapery panels. PRO TIP: Make those curtains a pop of color in the room. Using the same color as the wall will absorb sound, but you will not get the
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it is. A strategically-staged home will fly off the market long before one that is equally nice but not staged every time, and it will usually sell for more as well. • > Continued from :: PG 28 Pamela J. Goodwin: Think Realty Coach owns and runs Goodwin Commercial, a commercial real estate and consulting
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> Continued from :: PG 87 Net Zero in Costa Rica
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come up with an innovative way to integrate the build-
112 | think realty magazine :: october 2017
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