Getting into the commercial real estate business can be new and exciting, but comes with it’s challenges. With the New York real estate market always changing and new trends surfacing, it’s important to stay current and up-to-date. When first starting out, it’s easy to assume you know nothing about commercial real estate. When entering commercial real estate, there are a few tips to keep in mind:
Build Up Knowledge
The first thing you’re going to want to do when entering the commercial real estate industry is learn as much as possible. The best way to do this is to enroll in classes. You can find classes through local real estate schools, college courses or even online courses that will teach you all you need to know to get started. Taking classes not only gives you the opportunity to learn, but also the chance to meet other people in the industry and start making connections.
Besides taking classes, another great way to learn about the industry is through reading. Look at material from books, magazines or even commercial real estate blogs. Newcomers have a lot to learn from the commercial real estate veterans in New York. It’s important to read about their work and learn from them.
Success doesn’t happen by waiting for an opportunity to be handed to you. You won’t get anywhere in commercial real estate by sitting around. It’s important to attend local meetups and events to make connections and build up your network. By attending these events you’ll be meeting other people in the industry who can help take off your career.
Gaining hands on experience through internships is another great way to take action. Look into interning for a local brokerage firm to learn from the top brokers and agents in the industry. Don’t let your age discourage if you’re worried you may be too old to be an intern. Agencies are always looking for an extra hand, no matter what your age may be. It’s a great to gain experience and learn from the best.
Utilize Social Media
Social media has become a norm in our everyday lives and can be used as an incredible tool in commercial real estate. Use social media to follow people or your favorite companies, and look to their content for inspiration. You can learn from individuals’ experiences and easily stay up-to-date on their latest news.
It’s also important to use social media to reach out to potential clients and other connections. Once you have found your niche, the interest you decide to specialize in, use social media to get that niche across. Post updates or blogs to show your knowledge in topics like retail, office space, industrial or anything that relates to what you specialize in. This can lead to finding new clients of potential connections to help you find success.
Stay Patient and Persistent
If it doesn’t happen right away, it’s important to not be discouraged. Finding success in commercial real estate comes with a lot of trial and error. It can take years before you see the fruits of your labor which is why it’s so important to stay patient. It’s easy to want to give up when finding a new client or project doesn’t happen as soon as expected, but don’t let that slow you down and make sure to stay persistent.
Even years in your commercial real estate career, never stop attending events or local meetups. Every event you attend can lead to a success story. Experts in real estate should still take a class now and then to brush up on their skills or read about other experts in the industry to stay current on the trends. A career in commercial real estate, especially in New York, takes time and dedication.
There are many ways to invest in real estate. From renting out property to REIT Investments, some real estate investments are more lucrative than others. One of the best real estate investments is house-flipping. Many have seen the shows on HGTV and house-flipping has become very popular because of it. But a lot of the time, these popular TV shows don’t go over the true cost or gritty details of the hands-on, real estate investment:
What is House-Flipping?
For those who haven’t seen the TV shows and didn’t know what house-flipping is, it’s buying a property for a low price in a desirable neighborhood, making improvements to the home and selling it for a profit. This is typically short-term ownership since the longer you go without leasing to tenants or selling to another buyer, the more expenses will add up, which can ruin your profit in the end. Although house-flipping can be very profitable, there is some risk to this kind of investment. It’s best to start small with low-end properties before trying out higher-end flips.
A lot of times, house-flipping can seem a little too good to be true. Buying a house for cheap then selling it for sometimes double can seem a little far-fetched. According to the real estate data company, ATOMM reported individuals making an average of $65,520 in profit from flipping houses in the United States. Although this calculation may not be accurate as it does not include some of the professional house-flippers make, it’s still a pretty lucrative profit. This number can decrease with lower-end flips and increase with higher-end flips.
The Drawbacks of Remodeling
Simply put, the more remodeling you commit to pottery, the more time it will take and the fewer profits you will see. The bigger the job, the more it will cost in the end. You may buy a house for cheap, but the cost to fix it up may not be worth it in the end. Tearing down walls or expanding rooms to create that desired open-concept style can lead to some serious problems. This kind of big remodeling will mean more time, a lot of money, and more resources. Sticking to simpler fixes and remodeling will give the bigger payoff. You need approval and permits for big changes to the property, but small changes require less money and less time.
House-flipping can be the most profitable form of real estate investment, but only if you do it right. Picking a property with less remodeling needs and opting for low-cost renovations is the way to go. Keeping the process as quick and lucrative as possible.
Just like any other business, investing in real estate requires expertise and knowledge. An investor cannot achieve his or her goals without keeping some basic things in place. There are things that real estate investors need to incorporate in their mission for them to do the best in the industry. The following are some of the most important things that every real estate investor has to do before venturing into the business.
Hire a bookkeeper
Every real estate investor should ensure that he or she hires a bookkeeper has the first hire for the company. Investors should start by having clear paperwork. The task here is very cheap and more manageable. It is also essential from the beginning of the whole thing. Failing to have clear paperwork in place from the start can lead to losses in the entire investment.
Find the deal before everything else
Majority of investors are good at sealing deals. Unfortunately, it’s a minimal number of deal sealers who have tactics of finding a deal. These people can teach an investor how to make a deal and not how to find it. Real estate investors should have it in mind that finding a deal is a primary obligation in this industry. Additionally, Finding a deal narrows down to be the most profitable part of the real estate business.
Depend on consistency
Consistency beats the competition. An ambitious investor should have consistency in hard work to ensure perfection. Experience is gained through both failure and success. An investor in the real estate industry who capitalizes on consistency in hard work can beat those with resources, knowledge, and talent than him.
Have a system of all business documentation
A real estate investor is likely to be stuck on the way if he or she has not incorporated documentation and systemizing the operations of their business. Every investor needs to document and systemize the company’s services to enjoy the financial freedom that real estate promises. More so, a delegation of duties can offer the business a better bite. However, investors should be careful not to abdicate the entire company in the name of a delegation of responsibilities. All systems that an investor puts in business require close supervision and management. Abandoning then may cause business failure.
About Avraham Glattman
Avraham Glattman is the owner of First American Properties Group, a real estate business based in New York City, New York.
Avraham brings over 26 years of experience working as a real estate agent in the city, where he continues to work today. He graduated from Newport University with a Bachelor’s Degree in Business Administration and Management and remained at the university to attain his Masters of Business Administration (M.B.A.). After graduation, he jumped straight into the real estate field in 1992 in the greater New York City area. Throughout his career, Avraham has explored listings across the New York area, keeping a detailed account of the locations, pricing and comparable properties in the housing market.
After gaining a wealth of knowledge about the real estate marketing in New York, Avraham Glattman decided to take it a step further by creating First American Properties Group with his longtime business partner, Pete Jacov in 2008. First American Properties is a real estate and development company that services the five boroughs of New York. The company currently owns residential and commercial properties in Queens, Downtown Brooklyn, Harlem, and Manhattan. The company focuses on monitoring the growth and development in different areas of the city, so they can work to establish more patterns of growth and help revitalize the area.
While monitoring the different areas of New York City, Avraham Glattman consistently keeps an eye out on up-and-coming neighborhoods that he could potentially invest in. For example, after seeing Harlem, Avraham was immediately impressed by the neighborhood’s charm, leading him to invest in properties in the area. With a convenient location next to the subway and charming business like music venues in the area, it was not hard to see what attracted Avraham to the area.
Today, Avraham Glattman continues to find new investments with First American Properties Group, alongside his business partner, Pete Jacov. Together, they are working towards the goals that they set for First American Properties Group. The goals include acquiring property in the Harlem area to renovate and sell, as well as acquiring properties in all five boroughs.
Avraham was borned and raised in Israel, where he went graduated high school. Not long after, he served in the Israeli army for three years, before he was sent to the United States to work with an Israeli newspaper in Brooklyn, NY. Not long after making the move to New York, Avraham met the woman that would become his wife in 1991. Together, they have three children and two dogs.
In his spare time, Avraham Glattman enjoys spending his time with his wife, three children, and two dogs, and loves to explore new parts of New York City. In addition to his work as co-owner of First American Properties Group, Avraham also finds time to support his children in their various sports events, concerts, and school activities. Avraham’s incredible dedication to both his work and family brings him immense happiness and purpose each day.
To learn more about who Avraham Glattman is, visit AvrahamGlattmanNewYork.com.