Andy Jubelt Offers Tips for Choosing Commercial Real Estate Firms
There are a number of companies and individuals, like Andrew Jubelt, that offer commercial real estate investing services to lessees, property developers and others. If you are looking to flip a property or get out from an underwater development, here are some key things you should look for before you sign a contract.
Skill in Financing Various Types of Properties
Most commercial real estate firms can provide financing to cover costs of improving properties or as a stopgap during lease turnovers on properties with strong ratings. However, if you need flexibility or are looking to make significant repairs, funding can dry up quickly.
Investors like Andy Jubelt have decades of working not just with banks but other financial outlets and interested individuals to offer the best options for funding at more attractive rates. This can speed up the time to sale, or improve forecasts on capitalization of earnings due to increased growth possible on "value add" properties that increase in value. Experience in looking for money is also key, and Jubelt has used debt and equity on more than $1,000,000,000 in funding.
In-House Subsidiaries for Property Management
Working with a commercial real estate developer can open the door to a wide variety of investment opportunities. However, many have to work with outside property management firms, so you have to pay that company in addition to someone like Jubelt and Avant Capital Partners. They have relationships with property managers so that you have one-stop investment options with people who know what properties are worth researching up and down the East Coast.
If you do decide to work with a company that contracts out management services, then be sure to look at what kind of terms they offer to lessees in each contract. The most adept groups are willing to be flexible with tenants on certain aspects of a transaction without affecting the bottom line of investors and property owners.
Experience Turning Around Less Desirable Properties and Complex Transactions
It's a lot easier to make a good property better, but the return on investment can also be a lot lower because of the reduced risk. Top commercial real estate developers know where to find the slightly distressed properties that just need a little bit of work. Along with skills in financing, look for companies that can show examples of improvements that generate dividends for investors.
For most commercial real estate properties, the goal is to have the net operating income (gross income minus operating expenses) positive in the first year, but that might not be possible depending on a number of factors from existing debts to volatility in the local real estate market. Understanding what steps one can take that account for those factors is a key selling point for an investor looking for the best fit.
They should also make sure that whatever plan for development is offered by a company, that it is tailored to their needs and financial capabilities. There are some cookie cutter property investment opportunities, but there can be a significant difference in trying to make them work if you want to cash out after five years or after 10.
Excellent References and Testimonials
As with any major contract or agreement, it is important to find out a commercial real estate firm's track record. While it does not have to be spotless, it helps if the principals can point you to successful projects, happy tenants and/or significant returns on investment. This is especially true for those who deal with complex transactions. If they do not know how to explain what will happen in plain English, you may not be able to make a decision that accounts for any risks or benefits of going down a specific path.
In terms of references, there should also be some among each group of people that a firm works with on a day-to-day basis. That can range from commercial tenants or seniors at a retirement community to investors who help support projects of developers like Andrew D Jubelt. If every stakeholder is satisfied, then it offers a strong likelihood that your own project will have success.
Whether you are a newcomer to real estate investment or a seasoned professional, you will want to be able to bounce ideas off of the firm's principals from time to time. Find out how often you can contact staff and gauge their answers to any initial questions that you may have to see if it fits your personal style before you sign on the dotted line.
0 comments