When it comes to finding value in potential investment properties, small indicators can lead to big value. Let’s take a look at how to find the best value-add property. Considering many factors relating to a property’s potential value is essential to arriving at a realistic purchase price. Investors are looking at local market information, factoring in the cost of construction and the renovation process, and in some cases they are able to see a better and more profitable use than what currently exists.
No matter what industry you’re in, using social media as a networking tool and as a way to stay up-to-date on trends and events in the industry is always a great idea. Commercial real estate is no exception. Whether you’re looking to learn more about your particular market, want to stay abreast of changes in the industry, or simply want to network with your peers, add these top commercial real estate brokerages to your list of must-follows.
Preparation is key to success in anything we do, and marketing a commercial property is certainly no exception. A well-conceived and executed marketing plan involves a series of very deliberate steps that ensure maximum exposure and a crystal clear message.
International investors are a huge potential source of business for CRE. Foreign capital already represents over 20% of the total investment in U.S. commercial properties, to the tune of more than $100 billion last year. Certain real estate marketing techniques can help attract these buyers.
These buyers are primarily institutional funds originating in Canada, China, and Australia, with significant activity from the Asian Pacific as well. China alone has about 2.7 million high-net-worth individuals (earning $1.5 million plus), and the upper-middle class in China includes about 60 million people.
These international investors tend to favor American properties due to the relative stability of our markets and the increasingly transparent deal-making process. Despite this interest there are unique challenges to marketing to these buyers.
Opportunities abound in international real estate. Twenty percent of the deals made on CRE in the U.S. currently involve foreign capital, and American investors are also taking a closer look at investing overseas.
Investing in properties internationally necessarily involves considerations that domestic investment does not. In addition to customary concerns, like property history, financing, and market trends, international investors must consider conditions and laws in the country where the deal is located.
There was a time when buying real estate sight unseen was considered a very poor business practice indeed. Relying on the seller’s description, and possibly some photos was foolhardy, in a word, before the technology developed that now makes it a viable option. We look at some property tech tools that can help.
CRE deals are being conducted without regard for geographic distance, thanks to that technology. Connections are vastly easier, and most transactions can be conducted electronically: from property listing to due diligence to contract signing.
Some specific devices and systems have been particularly useful for buyers who need to get details and clear information on a prospective property but can’t travel there in person. Using these tools, it’s possible to make a well-informed decision on the purchase of a property you’ve never laid eyes on.
In the past, no one in their right mind would have considered making a major international property investment without personally inspecting the site and meeting personally with the seller. This made investing in foreign properties difficult. International real estate investment was once reserved for highly connected entities with deep pockets. Smaller investors and those just entering the international arena didn’t have access to the most attractive deals, and the complexities of investing solo kept many out of the game.
However, over the last decade CRE has increasingly taken advantage of digital tools and platforms that remove those barriers. Technology is making it easier to make connections and identify opportunities in international real estate investment, in several ways.