Real estate is a constantly evolving market, shifting with changes in interest rates, economic landscapes and policies. As such, it is critically important for professionals working in the real estate market to keep track of current trends.
Yet, deciding which factors to remember when forming yearly goals can be challenging. To help, five members of Forbes Real Estate Council weigh in below on the key factors they believe are most important to remember when planning. Here’s what they said:
Members discuss a few key things to keep in mind when setting real estate goals this year.Photos courtesy of the individual members.
1. Plan For Change
Given the pace of change impacting commercial real estate, the key for service providers is to embrace change, in particular, technological changes. It’s not a question of if the industry will change, it’s not even a question of when. The “when” is now. So, plan for change and think about how your company can be part of the future. – Greg Fogg, TenantSee
2. Watch Current Conditions
The key thing to remember when planning next year’s goals in real estate is to be aware of current conditions in the market you are investing in. By understanding what the trends are regarding days on market, interest rates and housing availability, you can make informed decisions and wise investments that will withstand any instability in the overall market. – Melissa Johnson, HomeAid, Inc.
3. Stick To A Methodical Approach
Make sure you don’t get caught up in hitting numbers or projections. Instead, stick to being disciplined and methodical in your approach. Sometimes doing no deal will exceed any goals you have written down. – Scott Morongell, Morongell Capital
4. Structure Plans With An Eye To Events
We have structured our plans for the 2019-20 calendar years as net sellers of real estate. A close eye on interest rates and the presidential election will be key indicators for the market, and where we are in the cycle. If we can maintain 2.5-3% GDP growth over the next two years, any real estate acquisitions should be purchased with a recession or correction in mind. – Otto Bonahoom, Bohouse
Read more in Eight Strategies For Staying Ahead Of A Changing Real Estate Investment Market
5. Mitigate Risk
As all commercial real estate investments contain numerous amounts of inherent risk, our driving force is to mitigate that risk through two areas: diversification and limiting the use of leverage. Whenever possible, we strive to limit or eliminate the use of debt/leverage in our acquisitions. If we are able to buy our properties all-cash/debt-free we know that we will never have a lender foreclosure and a complete loss of equity as many real estate investors have suffered over the years. – Dwight Kay, Kay Properties and Investments