Investing in commercial real estate starts a lot of times with finding listings through online marketplaces. But you need the right approach to manage those marketplaces effectively.
With these 10 easy tips, you can gain a better understanding of how to access online marketplaces effectively to build a solid portfolio of revenue-generating assets.
1. Avoid marketplaces where one-time data dumps are completed.
Commercial real estate is mostly handled locally, but real estate buyers need to be able to find listings all at one place nationally. The data comes in from a one-time upload on several online sites, with very little contact from the listing broker afterwards. This results in unnecessary time spent looking through outdated and incomplete descriptions of the property.
Timeliness and quality of the details is paramount when selecting a marketplace. Find a portal that brings in listings from local market websites where brokers personally check, on a regular and ongoing basis, the data they exchange with other brokers.
By making sure that the site you select doesn’t collect data from everywhere and everywhere, you are more likely to see up-to-date and correct listings.
2. Using the built-in tools for evaluating property.
There are several data points which can be accessed and used by CRE investors to determine the suitability of a property. Too many in reality can become difficult to piece it all together. To simplify the search process for the initial property, find a listing provider that will give you built-in resources and use them to their full potential to assess a property without leaving your office. Using tools like this will provide a quick summary to an investor, which lets them determine whether to explore further.
3. Pick a marketplace which does not charge brokers per listing.
You will eventually see far less listings if you are using a marketplace that charges a fee for every post.
Consider this from the broker’s point of view: If you are paying a fee for each listing, you’ll be more careful on what you’re putting on the market. If brokers can post unlimited listings without financial restrictions, a full database of active listings would be more likely to be found in a market.
4. Consider zones of opportunity.
Your property’s position is critical for your financial success, and you need to target properties situated in places that offer you reliable profit opportunities. Most investors are moving to investment tax benefit opportunities areas. Use your online marketplace to easily target assets inside those specified government zones.
5. Look for intuitive browsing and structured data.
It is all too easy to get lost in the process of collecting and organizing information, with so many different data points. Navigating the desired knowledge and arranging it in a straightforward and intuitive way should be easy for you.
Data will include accurate photos of the house, the number of units, the year it was constructed, its square footage, the number of floors, the classification of buildings and other details used to determine the value of a property.
6. Look for listings based on property to save time and money.
All listing and transaction information — past and present — are connected to a single property database and the underlying assets on a property-centric website. It has many benefits over a model based on advertising, including the opportunity to get a holistic view of a property and the market in one location. This offers access to information such as lines of plots, ownership data, tax data, demographics, building features, space available and historical data.
7. Search verified listings.
One of the greatest challenges of using an online marketplace to find potential assets is knowing if a listing is up-to-date or expired. With potentially millions of listings, even if they have already been sold, it is easy for properties to stay active on a platform.
Make sure you use a system with listings that are regularly checked by brokers and kept current through a clear method to minimize wasted time and resources.
8. Have a radius of search, and use it to center your navigation.
Make sure to check properties within specified geographic parameters, be it a radius or a polygon check, to ensure maximum efficiency for your search.
You would want to search for properties along a two-mile stretch of a certain interstate corridor, for example. Entering a circle or drawing an area will give emphasis and precision to your quest and prevent you from shuffling through hundreds of properties beyond your desired area.
9. Using marketplaces that are unique to commercial properties.
Online marketplaces come in a variety of shapes, with wide content, scope, data, and complexity ranges. It’s best to stick with online marketplaces that are primarily based on commercial real estate to help you have an successful quest. This will be customized to the exact needs of CRE investors and will give you the best chance to find a property that is right for you.
10. Check out who designed the marketplace.
Businesses and organizations, focused on the power of those who have built it, prosper. It is important for commercial real estate marketplaces that the team that drives the marketplace completely understands the fundamentals of commercial real estate.
A CRE investment platform with the same degree of specificity that you extend to any real estate company or partner should be scrutinised. They should be seasoned in the industry, understand investors’ expectations and have an established track record to use this knowledge for your gain.