Real estate investment returns are powerful! Sometimes upward of 30% IRR. But, take notice, this segment of your portfolio lacks agility. Repositioning real estate is difficult, and sometimes not an option at all. Once the purchase is made and leases are in place there is little room for adjustments. As such the stakes are quite high when selecting the team that works this facet of your portfolio. Poor judgment on the broker’s part has catastrophic potential that can completely change your lifestyle, now and in retirement. The loss can be as big, if not bigger, than the potential benefit. Wisdom mitigates risk. Accurate intuitive valuations are one of the most valuable skills your broker brings to the table.
Every trade craft has higher learning avenues. CCIM is the most relevant and rigorous for commercial real estate professionals. If your broker is performing at the optimum based on your preferences and goals he or she should be eager for an opportunity to demonstrate their value and solidify the relationship. The CCIM Challenge: Have your broker walk you through their valuation process step by step and explain how their numbers and measurements are crafted. We invite you to then sit with one of our CCIMs and do the same. Not examining your broker's methods, but analytics and reports proprietary to the CCIM's process. This isn’t about us seeking to undermine the existing analytics your broker provides. This is entirely about us providing you with additional perspectives so you are empowered to understand the disparity in the assumptions and methods many critical financial decisions hinge upon. You will likely discover quite a bit about your tolerance for risk and how closely aligned your broker’s work is with your preferences. Hopefully you will be pleased with your findings.
This is YOUR money, YOUR future, YOU are at the wheel. Taking your portfolio in for a tune up AND second opinion is time well spent. There WILL be a moment of discovery in your future. Will it be that your broker’s work wasn’t conservative or intuitive enough or that despite market fluctuations you’ll be benefiting from the transactions completed? One discovery may result in a decline in your daily lifestyle, the other results in the comfort of securitty. What will your discovery be?