Don't have the flaky buyer syndrome!

I get contacted often about the possibilities of investing in commercial real estate. Naturally whether a potential client is a direct buyer or a passive investor looking to invest in a property I syndicate as a sponsor they have many questions.

I generally do an initial 30 minute call to discuss retail properties which are my specialty. On the call I talk about the process, the financing options, and the time commitment involved with one strategy versus the other.

Over the years I have seen patterns in buyers from those that have success and those who falter in one or all aspects of trying to buy a commercial investment property or passively invest in one.

1. Not having the proper expert help you to buy the property and search for the deals. The expert knows many things to look for versus an inexperienced buyer might just know a few. What this causes is time to be wasted looking at properties that the expert know will not work because of condition, location, financing, etc.

2. Poor communication. Buyers not getting back to parties in a timely manner to effectively get  a property under contract once a quality one is located. Buyers can lose out on deals because they simply are out of touch with how fast quality properties sell in the marketplace.

3. Bad attitudes. I have met some buyers with a few million who think they are God and then others with about 100 million who are very nice,respectful, and down to Earth. How you carry yourself and present to others determines what kind of opportunities come your way. Be someone people want to do business with. At this stage of my career as a CRE broker I can choose who I work with. People that have a lot of drama or attitudes I do not want the business. Quality investor relationships over time are much more important to me.

4. Being unrealistic. Having an idea as a buyer in your head of what you want and when the expert tells you they know state by state what going cap rates are and inventory available you still want to believe what you want is possible. Everyone wants a deal but there is a deal and then wanting pricing of years ago in a cycle. That's just not reality.

5. Being flaky, indecisive, and not telling your expert what you like or dislike so they can narrow down choices. Also not being forthcoming about if you are working with multiple parties already. It's better to use ONE broker and communicate with them specifically what you want. Then give them ample time to find it. If that broker is not getting the job done then move on but you also have to be realistic with the market. MORE is not better when it comes to commercial brokers and mortgage brokers. Knowing you are not committed to them they will give minimal effort to help you the buyer. Sellers will also hear you are all over the place and out of control and they will not want to go under contract with you thinking you are unstable.

Brokers and sellers want buyers that are stable, have a clear since of direction, communicate well, and take action.