5 Tips to Building Credibility in Commercial Real Estate
If you’re new and relatively unknown to commercial real estate, you may want to build your credibility. This will help when looking for investors or other professionals to help you close a deal. The following five tips will ensure that you’ll be taken seriously as a credible investor in a property.
Learn the Language
A key to being taken seriously as a commercial real estate investor is speaking like experienced investors. Using language that wouldn’t be used by the typical investor will make you look new and inexperienced. Reading books, looking at deals, and meeting with investors or brokers will help you learn how to sound like a veteran of the industry.
Carry Business Cards
Most investors don’t carry business cards around. Having your own business cards with your contact information will instantly give you more credibility than those with similar experience because investors or other professionals will know that you’re serious.
Build a Website
While most investors don’t have their own business cards to hand out, even fewer have a website. A stellar website is not necessary as even a basic site will give you a web presence that will help to achieve the type of credibility you’re looking for.
Find a Team
Extensive networking will allow you to find the right people to join your team. You’ll want to have a real estate attorney, SEC attorney if you’re attempting to raise money, a CPA, and a property manager. Having a team built around you will make you appear as though you’re bigger and more important than you are.
Creating a credibility kit will provide you with instant credibility when you meet with sellers, investors, or other professionals. There are three items that should be included in your credibility kit.
Your cover letter should be a one-page letter that will introduce you to the person you’ll be working with during the transaction. It will include highlights of your accomplishments as well as outline your goals.
Your resume should be a one-page overview of what you’ve accomplished and highlight a track record of success. This will show investors or other professionals that you accomplish your goals and can get deals done.
Sample Deal Package
Your sample deal package should be an investor package of a real deal that you got from a broker and should be completely authentic except that there’s no contract. This package should include an executive summary, financial projections, and actual financial information. When meeting with investors, you can use this instead of an actual deal.
When launching into the commercial real estate industry, you won’t have very much credibility. It’s something that generally gets built up over time. These five tips will help you to create some instant credibility and get you off to a great start. If you are looking to invest in commercial real estate, come to Harkins Commercial Real Estate.