Into Real Estate? Then Get Comfortable Operating in a “Grey Zone”
Let’s face it, real estate is a world of grey.
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We constantly operate in a grey, hazy zone. It’s never set in stone, simple, or clear cut. Given the amount of moving parts, politics, decisions, and unknowns we’re faced with on a daily basis, our world is one where you have to feel ‘on edge’ almost all of the time.
Several real estate developers reminded me of operating in this grey zone recently. They’ve been rather successful in their careers and reiterated that, if you’re uncomfortable working in the ‘hazy middle’, real estate just isn’t the place for you.
I couldn’t agree more. So I pried a little deeper to tease out this notion. If you can relate to the following, you’re operating in a grey zone. But don’t worry, this is healthy in our real estate realm.
- Do you have an empty lot of land that has dozens of development opportunities–where to start?
- Are you looking at a property and–GASP–considering paying full retail value because you sense a greater potential?
- Do you have to face an unknown permit or architectural review board?
- Do you have a rental market that’s changing by the minute (if you live in Northern CA, 100% yes here)?
- Are you honing in on the colors, materials, styles, and living/working/shopping preferences of your customers (your renters, buyers, etc.)?
- Have you viewed an empty parcel and asked – how can I improve this?
- Are you concerned with how quickly a property can absorb?
- Do you want to acquire a large parcel of land and want to subdivide into an amazing project?
The points above are examples from my world. I kept this one short and sweet because I want to hear from you.
- What are examples of how you operate in a grey zone?
- Do you currently have renters you just aren’t thrilled with?
- Are you inundated with high construction costs on a new project?
- Is your market overly competitive?
- Are you concerned about how best to tackle marketing?
So let’s hear it–what examples do you have that don’t quite have clear cut solutions?!