Commercial Investment Property Articles
“Darin Garman Swears Under Oath That There Is No Problem In The Commercial
Investment Real Estate Market”
Darin Garman, CCIM
Copyright 2006 All Rights Reserved
Last month I talked about how the ease of credit will make owning an
investment property, especially an apartment property a little more
challenging. I should have probably done a better job of framing this
article because, quite frankly many of our members started to panic.
I started to get phone calls, voicemails and emails with about 90% of them
wondering if the bottom has fallen out of the real estate market and if they
should be running away from commercial investment real estate (especially
apartments) at the current time…
My answer is NO WAY!!
For some reason a few people took my article to mean that Armageddon is
heading for apartments and investment real estate world. Well, that is not
what I meant so lets get to the bottom of what I did mean.
First, there are always good deals to be found. No matter what the state of
the market always keep in mind that there is always a good deal. If you know
what you are doing you can make money in any market. Hot, cold, slow, fast,
etc. It really does NOT matter. Now, are these deals going to come and knock
on your door this evening and say,
“Hey, buy me, I am a great deal!!” You and I know that this does not happen
(even though many people think that this will happen—you know the kind, no
work plus a lot of work plus a few affirmations = success). Really good
deals should not be easy to find. That is right, they should not be easy to
locate. It gets back to the old saying of “If it was that easy….”
I Compare It To Needle In A Haystack
I do compare finding a great deal with finding a needle in a haystack. It is
that difficult because of two things: 1) There just are not that many great
deals on the market at all at any given time. It gets back to the old
80%—20% rule but in my opinion when it comes to investment real estate I
think it is more of a 95%—5% rule.
Some of My Best Clients Still Need Reminding
Even some of my best clients need reminding of this. When some of them
contact me they are disappointed that I do not have a great deal for them
right there on the spot. Or, even if they have to wait a few weeks many
start getting antsy. Let me give you a great real estate law to live by.
Lets call this Garman’s Law: Here it is…..
All Great Real Estate Deals Happen Slow….
The best real estate deals that I have ever been involved in were slow
movers. Slow finding the property, slow due diligence, slow negotiation,
etc. It was slow not fast. It is the fast deals that you need to be
concerned about. These are the ones that can disappoint you.
So who’s left??
Here is the writing on the wall. If this is the case and our good and even
substandard tenants are getting financing to buy their own place, who is
left over to rent your property??
People serving time! (Just kidding). But close, people that are sooo bad
that they could not get a loan. And, most of the time these are people that
you do not want occupying your rental home, apartment or commercial property
So, what do you do? Do you run away from this, get out of the commercial
investment business altogether?
Of course not. But, you better make sure
So What Does All Of This Have To Do With Ease Of Credit And The Effect Of
IT on Us...The Commercial Real Estate
Owners and Investors….
Here is what it means :
1) Great deals will not be as easy to find.
2) Great deals will take longer to find.
3) You will need to be a very, very good manager to lock in profits. No more
4) You will have to do more due diligence.
5) Bottom line? You will have to ask more questions.
The Main Reason People Work With ME
Of course, the main reason people work with me is that I do all of this for
them. Simple as that. However, even though this is the case and I do save
people A LOT of time and hassle and they do get good properties from
me….They need to be asking more questions. The majority of people that I
work with DO NOT ask enough questions.
So keep all of this in mind as you go through the investment part of your
life. Especially in the commercial real estate world. Nothing worth it is
easy. Nothing worth it comes to you overnight. You are building wealth not
an erector set.
Always Remember 95%—5%
By the way, this applies to more things than just real estate but we will
keep it here on our investment real estate planet for now. The best thing
you can do is be hooked up to me, constantly aware of what is going on in
the marketplace. Always informed. And when that great deal comes up you will
know it and not even question it.
Darin Garman, CCIM
Commercial & Apartment Real Estate Specialist
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Copyright 2006 Darin Garman, CCIM, All Rights Reserved.
Apartment and Commercial Investment Property Specialist