Here's how you can successfully scale your commercial real estate business.

Here's how you can successfully scale in Commercial Real Estate. Ill break it down into my favorite steps. 1. searching for a deal with at least 25% equity up front, able to add value and increase rent within the first 60-90 days. 2. I use the special funding that I set up as a Life Insurance Agent for our company to secure the down payment at zero % interest while the down payment money is still earning 14% Guaranteed in the account. My little 250 year old secret. 3. Rehab the property and increase the rent getting all the units rented and high value improvements, upgrades then get the property appraised again. 4. Cash Out RE-FI then new mortgage for over $1M and place my new Cash + new Rent back into my Life Insurance

1-Start investing Young if it's posssible. 2-Don't cross-collaterized your assets as additional securities 3-Choose the Banker who want a build a relationship not do only a transaction.

Join a professional B2B networking group like ProVisors where two way commerce (giving and receiving referrals) is a way of life. This can greatly expand your profile and fill your rolodex with experts that you can in turn refer to your own clients.

Commercial real estate is truly a small circle. It is critical to network and find ways to add value. Determine your strengths and share that with others to see how you can get involved, even in a small way. Relationships are essential in this business as you cannot tackle these larger deals alone. You will also learn so much by meeting others in the space. Many investors enjoy sharing their experiences and helping others.

Scaling in CRE: Simple, Not Easy Scaling in commercial real estate isn't about making more widgets—it's about finding more viable deals. The math is simple: more deals reviewed = more potential purchases. But only if they meet your criteria. Great deals are magnetic, attracting investors and lenders naturally. Yet timing remains critical. You can't force scale; you can only position yourself to seize opportunities. The key? Maximize deal flow, maintain strict standards, and stay attuned to market conditions. In CRE, scaling is less about aggressive expansion and more about being in the right place, at the right time, with the right deal. Remember: Keep your pipeline full and your judgment sharp. The rest will follow.

Embark on an extensive and detailed market research endeavor to uncover emerging trends, identify profitable locations, and pinpoint potential investment opportunities within the real estate sector. This research should encompass a broad spectrum of data collection methods, including analysis of economic indicators, demographic shifts, and consumer behavior patterns. By thoroughly understanding the dynamics of the market, you can make informed decisions that are grounded in solid evidence and strategic foresight.

Invest where people are going. For instance in Africa projects like Tatu City in Kenya appreciated from 5M to KES 24M in a span of ten years. Look for places where there is shortage of housing, the returns are also great

For a developing country (Papua New Guinea) I come from, the local market knowledge is vital before anyone steps into production of any product; residential, commercial, industrial, specialized properties etc. Lack of market research can lead to an oversupply or undersupply problem.

Pegando como exemplo São Paulo, cidade inteira trackeada e onde você consegue dados completos e totalmente confiáveis, buscar essas fontes é essencial para uma tomada de decisão, seja para construir, investir, alugar, etc.

In Lagos, Nigeria, where I operate, the commercial real estate market growth is due to urbanization, population increase, and economic activities, leading to high demand for office spaces, retail outlets, and mixed-use developments. Key trends include modern office buildings, effective and efficient facilities management, and a focus on sustainable, smart infrastructure. Understanding the local market is crucial for scaling a commercial real estate business as it helps identify high-demand areas, anticipate market fluctuations, and tailor strategies to local needs, aiding in informed decision-making and optimizing investment returns.

A tecnologia no mercado imobiliária vem caminhando a passos largos e estar atento a essas mudanças, é um diferencial competitivo para as empresas. Dos tradicionais CRMs às bases e dados de mercado, a tecnologia sibiu para outro patamar com a chegada das IAs.

Digital marketing empowers real estate agents to showcase a property's unique features and connect with interested buyers more efficiently

As the operating landscape and business environment continually become more technology centric, it’s imperative that we adapt to and adopt cutting edge tools and resources. Technology gives us greater efficiency, accuracy, and productivity – all essential components of a sustained competitive advantage. It’s difficult or impossible to scale quickly and reliably if we’re not making the most of what we got or keeping up with the myriad competitors who are leveraging the latest tech.

Incorporate the use of advanced real estate software and technology platforms to streamline your operations and significantly enhance decision-making processes. These tools can offer comprehensive analytics, facilitate efficient property management, and provide real-time insights into market conditions. Leveraging such technology not only optimizes your workflow but also equips you with the information needed to stay ahead of competitors and adapt swiftly to market changes.

Scaling any business requires milestones and goal setting. Commercial Real Estate specifically requires research and analysis, as well as a strong network. The commitment to never stop learning will elevate you in the industry. I personally find the leverage of technology to be a bonus to scaling the business as information is accessible, but learning to automate and innovate will also set you a part in this industry.

Successfully scaling hinges on optimizing operations to increase efficiency, reduce costs, and enhance service delivery. First, it's essential to implement systems that centralize data, streamline workflows, and automate routine tasks. This reduces manual errors and frees up time for higher-value activities. Embracing technology, such as AI and BI tools, can provide deeper insights into market trends and performance, enabling informed decision-making and strategic planning. Additionally, optimizing operations involves revisiting and refining processes regularly to eliminate inefficiencies. Lastly, maintaining flexibility to adapt to market changes is crucial.

This is a great way to make money in commercial real estate. However, I fail to see how it will help me scale my commercial real estate business. The diversification of investments could actually be a hinderance to building a stronger business. You are straying away from the core product and that is often seen negatively by investors and lenders. If a multi-family builder is suddenly looking to invest and secure financing for a large retail project ... there will be a lot of questions. Both internally among team members and externally among those looking to invest or finance the project. Does it happen? Of course, but the rate of risk goes up as you move further away from your core business model.

If one thing is for certain, different segments or verticals within a market move at varying paces and face disparate challenges. To ensure your ability to scale, it’s vital to distribute your efforts, resources, and capital across different asset types, geographic markets, and industry niches. You can then fluidly reallocate according to market conditions to achieve sustained growth. Depending on where you’re at in the growth cycle of your business, it may not be feasible to diversify to a significant extent. But in the long run, as your business grows and the availability of capital increases, look for opportunities to diversify to ensure stability and growth despite emerging economic, regulatory, and social conditions.

As an investor growing my portfolio. Diversity can come in many forms. - Location Diversity - Asset Class (i.e. A, B, C, in apartments) - Asset Type (Self storage, industrial, etc) - Operators I like to spread my money out across the country and across asset types.

Diversification is a great example of the age old warning against 'Putting all your eggs in one basket' or relying on one source of income

Expand your investment portfolio by strategically acquiring a diverse array of property types. This should include office spaces, retail units, industrial properties, and possibly other sectors like residential or mixed-use developments. Diversification is crucial for risk mitigation, as it spreads exposure across different market segments and economic conditions. By investing in a variety of property types, you can maximize returns and ensure a more stable income stream, even during market fluctuations.

Having access to lender relationships are essential in leveraging your investments. In todays market, for those who have overleverage at lower interest rates are finding it difficult to refinance out of their existing loans as they become due. For those who have loans coming due with Credit Unions, find that they may no longer be in the market for renewing a loan. There are so many variable regarding staying on top of financing trends that match your portfolio. But one misstep can be very costly. For many, maintaining relationship banking is helpful. Each portfolio requires a definitive plan that suits its goals and timing. You need to think long term on your loans. As rates change, locking in may be expensive.

Access to capital is key, without it is tricky to get into business. However, you could have access to capital through the network you have build up with the years before going into business. If they trust you and your investment opportunity makes sense you could present it to your network, syndicate the deal and raise the equity side from them for then go to find debt to cover for the other 50% of the money required to make the deal happens.

To scale your business, you need capital. Plain and simple. You can go find all the deals you want, talk to all the brokers, etc., but you need equity to close deals. To scale your business, you need to scale your capital raising efforts.

Hire an executive coach that has experience in coaching other businesses to scale up or perhaps has scaled up their own business. We have used one since early 2023 and it has made a tremendous difference in how we run our business and how well we are poised for growth. I interviewed several companies and coaches and felt the one that worked best for us is Jennifer Walzer Berkowitz using the Scaling Up method by Verne Harnish.

One thing I've found helpful is a diverse and dedicated support staff/team is crucial for overcoming obstacles and increasing productivity.

I would like to add Continuous Learning and Adaptation as a very important factor of success in commercial real estate : • Invest in ongoing education and training for yourself and your team. •Be open to new ideas and willing to adapt your business model as needed.

Create Value-Added Services**: Offer additional services such as property management, leasing, or consultancy to your clients, which can increase revenue streams.