Real estate can be a tricky industry. Success as an investor, developer or broker requires one to pay close attention to cyclical market trends, both on the local and global level. At the same time, you must also consider bigger industry changes that stem from evolving technologies and consumer expectations.
To help you prepare for the year ahead, we asked a panel of Forbes Real Estate Council members what to keep in mind when planning your real estate goals. Here are some things they recommend you consider:
Members discuss key things to remember when establishing real estate goals.Photos courtesy of the individual members.
1. Consider Your Lease Terms With Bigger Tenants
As retail spaces continue to shrink in size due to online shopping and delivery services, the industry will continue to evolve and landlords will continue to adjust. Being creative with long-term leases for larger tenants will be key for landlords as the marketplace shifts to smaller store sizes. – Jeffrey Halbert, Blackpoint Group
2. Focus Your Investments
Our firm has tried to make investments in areas that warrant multiple investments. In one case our company has five projects in a single five-block radius in NoMa, Washington, D.C. This approach allows us to become a keystone in that area’s development. I think investments that go beyond making a profit and aim to help shape new additions to the community is the most fulfilling way to approach development on a year-to-year basis. – Angelique Brunner, EB5 Capital
3. Prepare Yourself For The Property Seller’s Journey
The key thing to remember when working with sellers is that the preparation and sale of the house is only the first step in the total transition they will make. The second phase is the move to the next home. This needs to be considered one continuous process, rather than two unrelated events. This journey is difficult and uncertain for all sellers, regardless of price point. The emotional, financial and physical decisions along the journey are critical to saving both time and money. Agents need to educate themselves and their sellers to understand the steps they will take from one house to the next, and prepare for them together. – Caroline M. Carter, Done In A Day
4. Consider Market Trends In Your Specific Sector
Each sector of real estate has its inherent risks and cycles. In healthcare real estate, for instance, there is much talk about healthcare reform and its potential impact. We are on the verge of a tsunami of baby boomers needing preventive care in addition to traditional care, so the demand for healthcare real estate will only increase. – Frank Deluca, DCLHCP
5. Take A Realistic Look At Your Current Assets And Finances
There are a few things to remember, but as a CEO of a real estate firm I’ve learned that the key thing is being realistic. Be realistic about what you have and base your goals for the upcoming year on that. – Valon Nikci, Link NY Realty
Read more in How Do You Find Money For Real Estate Investing?
6. Perform A Cost-Benefit Analysis Of Your Investments
A cost-benefit analysis is crucial. Don’t let group-think drive your decision making. Instead, set up a solid framework with your short-term and long-term investment goals, and identify your risk threshold. Armed with the right planning mindset and focus, real estate is a solid cornerstone of any well-rounded portfolio. – Kimberly Yeh, BENA Capital
7. Have An Exit Strategy
Investors should set their expectations to meet the opportunities that are forthcoming. A well-thought-out defensive strategy includes establishing long-term goals to preserve capital with thoughtful investment structures that offer proven exit strategies. – Darin Davis, Presario Ventures