Secrets to Competitive CRE Bids

Three Secrets to Submitting Competitive Commercial Bids
As a commercial real estate investor, you must put your best offer forward when purchasing property in a competitive market. When dealing with multiple offers, use the following tips to ensure you put yourself in a position to profit.

  1. Do your due diligence before submitting your offer. As part of your initial deliberations about a property, you should review the zoning and taxes and, when possible, do a pre-inspection of the structure and building elements. This will ensure you have the knowledge needed to make an offer that allows you to stay profitable after you finalize the purchase.
  2. Pick a price you can live with. Competitive bidding situations can cause buyers to overextend themselves by exceeding the value they have established for the property. Closely review the comparable properties in the region and recent sales activity before making an offer. Then offer the highest price you are comfortable with. Keep in mind, it isn’t always the offer with the highest price that wins the competitive offer process.
  3. Limit or waive conditional periods. It will be important to discuss with your real estate representative whether you can limit or eliminate conditions from the sales contract to make your offer more appealing. For example, time periods for financing can be reduced or eliminated by providing a pre-approval letter from your lender with your offer. Pre-inspections can ensure that you are comfortable with the structures and any of the building elements. Carefully balance your conditions with your opinion of the property’s suitability for investment.

Make the Most of Networking Opportunities with Some Practice

We all know people who are charismatic, interesting, and fun to be around. These individuals have a knack for making others feel comfortable and relaxed, and always seem to know just what to say. They seem to have an innate gift that enables them to make friends easily and connect effortlessly with others.

If this doesn’t come naturally to you, you aren’t alone. The good news is that with preparation and practice, you too can be that interesting person. Here are some tips and conversational topics that will help you make the most of your next meeting, social encounter, or networking event.

Listen actively: Make eye contact and use positive body language to show that you are listening attentively and actually hearing what is being said to you. It’s amazing how being a good listener equates to being a good conversationalist in people’s minds.

Do some research: Facebook, Twitter, LinkedIn, and other social media platforms can provide a wealth of information about people’s interests and activities. Use shared passions and interests to strike up a conversation and connect. You may also discover that you have mutual friends or colleagues.

Ask, ask, ask: Most people love to talk about their jobs, their families, their pets, their hobbies, their vacations, and their favorite hangouts or restaurants. With a little prompting, people will often open up, and a rich conversation can flow from there.

Every successful business encounter starts with a conversation that grows into a connection – which may eventually become a solid relationship.

Branding Essentials: What Your Logo Says about You

Your logo speaks volumes about your business – its identity and position in the market, and the personality of your firm. Before you get down to the nitty-gritty of selecting the design, think about your target market and the essential message you want to convey to them. Also, take time to research the logos of other companies, particularly those of your competitors.

Next, give careful thought to these important elements:

Colors: Colors elicit emotional responses, so you should try to align the color(s) of your logo with the image you want to convey. For example, blue conveys trust, dependability, and strength; red is a color of action, energy, and passion; yellow suggests warmth and optimism; green evokes nature and serenity; purple speaks of creativity and sophistication; pink suggests femininity and youthfulness. It’s best to stick to bold colors and use no more than three colors in your logo.

Typography: Typography is another important element. There are three main types of fonts.

Serif fonts are those with little lines at the end of each stroke; they convey a traditional or professional sense. By comparison, sans serif fonts look clean and modern. The third type, script, can look creative, elegant, or casual, but script typefaces can also be difficult to read.

Beyond these essentials, keep the following basics in mind as you develop a logo:

  • Study all design components carefully – both singularly and together.
  • Use clean lines and simple shapes.
  • Make sure your logo is scalable, easy to reproduce, and multifunctional.
  • Compare samples of your desired logo in color and in black and white.
  • Avoid anything trendy. Remember, your goal is to use this logo for many years to come.

The FAQ on Commercial Real Estate Inspections
Building condition assessments have become an important part of the real estate investment process. Inspection reports can highlight upcoming repairs or identify fatal building flaws in the planning stage. The information obtained equips buyers with the necessary tools to ensure that they are investing their real estate dollars wisely.

What is involved in this process? Following are the answers to the most frequently asked questions about commercial inspection reports.

What is a building condition assessment? The purpose of a building condition assessment is to provide investors with an itemized description of the structural components and current state of repair of the subject property at the time of the inspection. The report is often a condition of the purchase agreement and can be a requirement for some financial institutions. The assessment covers all areas of the property, such as:

  • Building type
  • Components of the building site
  • All building structural systems
  • Exterior finishes such as masonry, stucco, or other siding products
  • Plumbing and electrical systems
  • Heating and ventilation systems
  • Elevators and other mechanical lifts associated with the building
  • Fire code compliance

The final report will include photographs of all building systems and an assessment of the interior and exterior condition of the property. The report will also include recommendations for correcting deficiencies or updating the building to meet modern compliance standards. A recommendation may also be provided concerning immediate repair and maintenance items, with cost analysis included.

Who conducts the inspection? There are different types of building inspectors, and not all are created equal or charge the same fee. Some focus strictly on one type of property, and the expertise of more than one professional may be required. The most important criteria when selecting an inspector is accreditation. Ensure the inspector is accredited to inspect the type of property you are considering. The scope of the inspection, size of the property, and the building history can all impact the cost of the final report. It will be important to fully comprehend the scope of the inspection to prevent unexpected fees.

When is it required? While an assessment report is not always mandatory, some lenders may require a thorough inspection report in combination with a property valuation (assessment) report.

Why is it necessary? The final report will furnish investors with an itemized list of elements requiring attention that may impact the property value. The schedule provided will detail time frames for the repairs or upgrades (ranging from immediately to an approximate future date), and will also cover the expected life span of building elements. A comprehensive building condition assessment may also include a list of repair and replacement recommendations with their current estimated costs.

Investors need to carefully reflect on what areas may pose present or future concerns. These can be any of a variety of environmental, structural, or regulatory issues. When included in the agreement as an item of due diligence for the buyer (at the expense of the buyer), the report will provide the prudent investor with the bargaining power to finalize pricing negotiations.

SA Realty Watch Group
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Worth Reading
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How to Know Whether That Business Book Is Worth Your Time
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There’s a reason you shouldn’t judge a book by its cover. Too often we find a book with an attention-grabbing title and glowing testimonials, and we think, “This holds the key to my success.” But just as often, we learn that the book is full of fluff. So how do you filter out the books that are actually worth reading from the books that should have just been a blog post? These six techniques will show you.

Giving and Receiving Feedback
For many, the word feedback evokes feelings of fear and dread. No one enjoys receiving negative feedback, and few enjoy dishing it out. Even positive feedback can be challenging to give or receive. To enjoy business success, it’s important to overcome these hurdles. Use the following guides to become a feedback aficionado:

Studies have shown that being a great leader means being great at feedback. Learn the secrets here:
Being A Great Leader Means Giving And Receiving Feedback

Negative feedback can be discouraging – or motivating. Discover how:
To Stay Motivated, Seek Positive and Negative Feedback

Want to give productive feedback? Use these five tips:
5 Steps for Giving Productive Feedback

Want to receive feedback effectively? Use these five tips:
How to Receive Feedback Effectively

Feedback should make your workplace more productive and pleasant. Here’s how:
Giving Feedback Boosting Your People’s Confidence and Ability

This newsletter and any information contained herein are intended for general informational purposes only and should not be construed as legal, financial or medical advice. The publisher takes great efforts to ensure the accuracy of information contained in this newsletter. However, we will not be responsible at any time for any errors or omissions or any damages, howsoever caused, that result from its use. Seek competent professional advice and/or legal counsel with respect to any matter discussed or published in this newsletter.
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