Why not have a commercial bucket list?
As we pass another annual birthday milestone, we are often reminded that nothing in life is permanent, that life is short, and there is no time like the present to achieve those items still on our life’s bucket list. The same seems to hold somewhat true for the personal goals we often set on January 1st of each year.
I think of these things as I ponder that we also live in a time where selection from menus of multiple-choice options are quicker and easier than really thinking through the process. Yes/no, opt in/opt out…it’s just a sign of the times.
So, if there is no time like the present to realize we have a limited time to achieve the things we wish to achieve. And if someone is willing to print out a multiple-choice list of personal goals then why not do the same for commercial real estate? Please forgive me if your goal is not on this list. In fact, you are welcome to send me goals that are printable for future commercial real estate columns. You may think of this as a list to discuss with your spouse prior to visiting your commercial broker. Here it goes.
- I own enough free and clear rental income properties to be able to pay for my wife and my retirements.
- My investment real estate portfolio consists of only properties constructed within the last fifteen years which may minimize my holding costs.
- Every property within my real estate portfolio pays me positive net dollars each and every month.
- My real estate holdings are primarily in their respective communities’ path of growth.
- My real estate limited liability holding company owns the building in which my business is located.
- I hire a property manager for each property in my portfolio ever since that day when I considered strangling a guy for washing auto parts in the dishwasher.
- My property lease terms are staggered so that only a portion of the leases expire in the same month and the same year.
- My real estate portfolio includes office properties, a retail building, several industrial buildings and two multi-family apartment building–as I find that diversity in real estate helps to even out the up and down years.
- My tenants don’t know me and I don’t know them. Fishing is much more relaxing that way.
- I am a real estate buyer. There should be few reasons to sell real estate when each purchase has been properly investigated, cash flows are positive, and the property is well-managed.n I focus on buying the right deal, not on timing the real estate market’s swings.
- My cash on cash return is nearly always in excess of 14% on each property. My greatest returns have been recognized on larger, multi-tenant or multiple-parcel purchases.
- I am a patient investor.
If any of these bucket items interest you, consider calling your commercial real estate broker today.